Marsh & McLennan Companies Inc.
Find Ratings ReportsMARSH & MCLENNAN COS's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. MARSH & MCLENNAN COS has weak liquidity. Currently, the Quick Ratio is 0.51 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 15.88% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 5496.0 | 5022.0 |
EBITDA ($mil) | 1377.0 | 1237.0 |
EBIT ($mil) | 1191.0 | 1035.0 |
Net Income ($mil) | 756.0 | 466.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 3358.0 | 1442.0 |
Total Assets ($mil) | 48030.0 | 33454.0 |
Total Debt ($mil) | 15436.0 | 13472.0 |
Equity ($mil) | 12191.0 | 10520.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 25.05 | 24.63 |
EBITDA Margin | 25.05 | 24.63 |
Operating Margin | 21.67 | 20.61 |
Sales Turnover | 0.47 | 0.62 |
Return on Assets | 7.82 | 9.11 |
Return on Equity | 30.81 | 28.99 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.1 | 1.16 |
Debt/Capital | 0.56 | 0.56 |
Interest Expense | 151.0 | 127.0 |
Interest Coverage | 7.89 | 8.15 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 492.01 | 494.79 |
Div / share | 0.71 | 0.59 |
EPS | 1.52 | 0.93 |
Book value / share | 24.78 | 21.26 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1678190.0 | 1621040.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 21.84 for the Insurance Carriers and Related Activities subsector and a value on par with the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 8.38 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 3.52. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, MARSH & MCLENNAN COS proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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MMC 27.59 | Peers 21.84 | MMC 24.00 | Peers 13.60 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. MMC is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MMC is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MMC 21.98 | Peers 14.42 | MMC 1.94 | Peers 0.87 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MMC is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MMC trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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MMC 8.38 | Peers 3.52 | MMC 25.08 | Peers 95.58 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MMC is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, MMC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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MMC 4.51 | Peers 1.96 | MMC 9.17 | Peers 37.25 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MMC is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MMC significantly trails its peers on the basis of sales growth. |
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