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Marsh & McLennan Companies
(NYSE:MRSH)
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Rating:73Outperform
Price Target:
$199.00
▲(2.90% Upside)
Action:Reiterated
Date:10/15/26
MRSH’s score is driven primarily by strong underlying financial quality (profitability, ROE, and cash conversion), supported by constructive earnings-call guidance and margin-expansion initiatives (including Thrive). The score is tempered by leverage and recent slowing in growth/cash flow, and by mixed technical signals (negative MACD and a below-50DMA setup despite longer-term support). Valuation is reasonable with a moderate P/E and a solid dividend yield.
Positive Factors
Strong profitability and cash conversion
Consistently high margins and sustained revenue expansion indicate a scalable, durable professional-services model. Strong profitability gives MMC capacity to invest in talent, technology, and acquisitions while supporting resilient earnings through changing insurance and consulting cycles.
Negative Factors
Elevated and rising leverage
Higher leverage reduces financial flexibility if operating performance weakens or financing costs rise. It can also constrain capital allocation among acquisitions, shareholder returns, and investment, making balance-sheet management an important limitation on otherwise strong earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash conversion
Consistently high margins and sustained revenue expansion indicate a scalable, durable professional-services model. Strong profitability gives MMC capacity to invest in talent, technology, and acquisitions while supporting resilient earnings through changing insurance and consulting cycles.
Read all positive factors
Marsh & McLennan Companies Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals the profitability of each business unit, highlighting which segments drive earnings and which may need strategic adjustments.
Reveals the profitability of each business unit, highlighting which segments drive earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyMarsh & McLennan Companies (MRSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$92.59B
Dividend Yield1.94%
Average Volume (3M)2.88M
Price to Earnings (P/E)23.2
Beta (1Y)0.34
Revenue Growth7.64%
EPS Growth-0.07%
CountryUS
Employees95,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)8.39
Shares Outstanding475,514,300
10 Day Avg. Volume2,661,440
30 Day Avg. Volume2,882,824
Financial Highlights & Ratios
PEG Ratio7.85
Price to Book (P/B)5.98
Price to Sales (P/S)3.35
P/FCF Ratio18.07
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue3.60
Enterprise Value/Gross Profit8.42
Enterprise Value/Ebitda17.05
Forecast
1Y Price Target
$204.73Price Target Upside5.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)10.48
Revenue Forecast (FY)$28.74B
Marsh & McLennan Companies Business Overview & Revenue Model
Company Description
Marsh & McLennan Companies, Inc. (MRSH) functions as a leading professional services organization, delivering expert guidance and innovative solutions to clients across the vital domains of risk management, strategic planning, and human capital. B...
How the Company Makes Money
Marsh & McLennan makes money primarily by delivering brokerage and advisory/consulting services to businesses and organizations, generating revenue that is largely fee-based.
1) Insurance brokerage and risk advisory (Marsh)
- Brokerage commission...
Marsh & McLennan Companies Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. The company reported strong revenue, operating income, EPS, consulting, risk, and asset-management growth; increased its Thrive savings target; completed its brand transition; highlighted expanding AI and digital-infrastructure opportunities; and maintained its full-year outlook. These strengths were partly offset by soft insurance and reinsurance pricing, a 6% decline in reinsurance revenue, a 1% decline in Workforce and Reward, lower fiduciary interest income, Thrive-related costs, and a litigation charge.Positive Updates
Strong Third-Quarter Financial Performance
Consolidated revenue increased 8% to $6.9 billion, or 5% on an underlying basis. Adjusted operating income grew 6% to $1.5 billion, adjusted operating margin was 22.7%, and adjusted EPS increased 10% year over year. The CEO stated adjusted EPS was $2.03, while the CFO reported adjusted EPS of $2.3.
Negative Updates
Soft Global Commercial Insurance Pricing
The Mark index declined 5% in the third quarter following a 6% decline in the second quarter. Rates decreased 1% in the U.S., declined mid single digits in Canada, Europe, and Asia, decreased in the high single digits in the U.K. and Latin America, and posted double-digit decreases in the Pacific region.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
Consolidated revenue increased 8% to $6.9 billion, or 5% on an underlying basis. Adjusted operating income grew 6% to $1.5 billion, adjusted operating margin was 22.7%, and adjusted EPS increased 10% year over year. The CEO stated adjusted EPS was $2.03, while the CFO reported adjusted EPS of $2.3.
Read all positive updates
Company Guidance
Management continues to expect underlying revenue growth in 2026 “similar to last year” and “similar to the levels we generated in 2025,” along with “another year of margin expansion and solid adjusted EPS growth”; management consulting is “on pace for high single digit growth” for the full year, implying a “roughly flat top line in Q4,” while fourth-quarter fiduciary interest income is expected to be “approximately $94 million,” FX to have an “immaterial effect on earnings,” adjusted corporate expense to be “approximately $80 million,” interest expense to be $255 million, and the adjusted effective tax rate to be “around 25% for 2026”; Thrive is expected to generate $600 million in savings, with the “vast majority” of actions taken by the end of 2028, savings realized “fairly evenly over the 3 years of the program,” and approximately $750 million of associated costs; the company continues to expect to deploy approximately $5.5 billion of capital in 2026 across dividends, acquisitions and share repurchases, with the ultimate level of share repurchase dependent on how the M&A pipeline develops, and expects current reinsurance market conditions to persist through the January 1 renewal cycle.Marsh & McLennan Companies Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.46B | 26.98B | 24.46B | 22.74B | 20.72B | 19.82B |
| Gross Profit | 12.17B | 11.40B | 10.46B | 9.64B | 8.65B | 8.39B |
| EBITDA | 6.01B | 7.39B | 6.93B | 6.32B | 5.27B | 5.40B |
| Net Income | 4.04B | 4.16B | 4.06B | 3.76B | 3.05B | 3.14B |
Balance Sheet | ||||||
| Total Assets | 59.81B | 58.71B | 56.48B | 48.03B | 44.11B | 34.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.84B | 2.69B | 2.40B | 3.36B | 1.44B | 1.75B |
| Total Debt | 22.33B | 21.45B | 21.86B | 15.44B | 13.47B | 13.16B |
| Total Liabilities | 44.90B | 43.40B | 42.95B | 35.66B | 33.37B | 23.17B |
| Stockholders Equity | 14.68B | 15.10B | 13.34B | 12.19B | 10.52B | 11.01B |
Cash Flow | ||||||
| Free Cash Flow | 4.15B | 5.00B | 3.99B | 3.84B | 3.00B | 3.11B |
| Operating Cash Flow | 4.47B | 5.29B | 4.30B | 4.26B | 3.46B | 3.52B |
| Investing Cash Flow | -1.02B | -845.00M | -8.82B | -1.42B | -850.00M | -1.16B |
| Financing Cash Flow | -3.81B | -4.63B | 4.46B | -1.12B | -1.05B | -1.30B |
Marsh & McLennan Companies Technical Analysis
Positive
193.40
Price Trends
181.06
Positive
178.42
Positive
175.05
Positive
Market Momentum
5.15
Negative
69.19
Neutral
87.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRSH, the sentiment is Positive. The current price of 193.4 is above the 20-day moving average (MA) of 180.90, above the 50-day MA of 181.06, and above the 200-day MA of 175.05, indicating a bullish trend. The MACD of 5.15 indicates Negative momentum. The RSI at 69.19 is Neutral, neither overbought nor oversold. The STOCH value of 87.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRSH.
Marsh & McLennan Companies Risk Analysis
Marsh & McLennan Companies disclosed 35 risk factors in its most recent earnings report. Marsh & McLennan Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marsh & McLennan Companies Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.78B | 19.42 | 9.68% | 0.93% | 34.22% | 3.21% | |
77 Outperform | $30.15B | 19.91 | 19.95% | 1.17% | 3.00% | 914.66% | |
76 Outperform | $68.38B | 43.74 | 6.67% | 1.03% | 26.74% | -9.60% | |
73 Outperform | $92.59B | 23.21 | 27.15% | 1.94% | 7.64% | -0.07% | |
72 Outperform | $64.07B | 16.56 | 42.56% | 1.04% | 4.36% | 51.69% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $585.05M | 25.96 | 13.01% | 2.45% | -4.12% | -20.24% |
* Financial Sector Average
MRSH
Marsh & McLennan Companies
194.72
11.12
6.06%
AON
Aon
302.06
-31.71
-9.50%
AJG
Arthur J Gallagher & Co
266.79
-8.96
-3.25%
BRO
Brown & Brown
71.08
-15.84
-18.22%
CRD.A
Crawford & Company A
12.46
1.82
17.11%
WTW
Willis Towers Watson
324.67
2.05
0.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.