Marsh McLennan (MRSH)
Financials · $91.9B market cap · SEC CIK 0000062709
ahead of 62% of the S&P 500 · #29 of 76 in Financials
Next reports on Jan 27, 2027, after the close, with analysts expecting $2.26 in earnings per share.
52-week range $156.60 to $200.33. 2% below its 52-week high and 26% above its low.
The case for MRSH
- Earns 27% back on shareholder equity.
- Moves less than the market (beta 0.56).
- Pays a modest 2.0% dividend.
- Within 2% of its 52-week high: the trend is up.
The case against
- Weakest against its peers: P/E of 22.7× is higher than 74% of Financials companies.
- Its weakest area is growth (48/100): revenue +7.6%, EPS +0.1%, +9.4% a year over five years.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 53 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 48 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 55 |
| Momentumhow the price has behaved lately | 63 |
| Stabilityhow violently it moves, what it owes and what it pays you | 84 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +7.6% |
|---|---|
| Over 5 years | +9.4% a year |
| FY2025 revenue | $27.0B (+10%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? No, slipping
| Gross margin | n/a |
|---|---|
| Operating margin | 21% |
| Net margin, FY24 → FY25 → now | 16.6% → 15.4% → 14.2% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $2.7B |
|---|---|
| Long-term debt | $18.3B |
| Net debt | $15.6B |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 22.7× |
|---|---|
| Fair P/E for its growth | 26× |
| Forward P/E | 15.2× |
| EV / EBITDA | 17.2× |
At 22.7× earnings it trades close to the 26× that 10%+ a year of growth plus a 2.0% dividend would justify. It is judged on earnings alone: its book value is not what it earns on, as it would be for a bank or insurer.
The financials, five years deep
Pulled from Marsh McLennan's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $27.0B | $24.5B | $22.7B | $20.7B | $19.8B |
| Change on the year | +10% | +8% | +10% | +5% | — |
| Free cash flow | |||||
| Free cash flow | $5.0B | $4.0B | $3.8B | $3.0B | $3.1B |
| Of revenue | 19% | 16% | 17% | 14% | 16% |
| Profit margins | |||||
| Operating margin | 23.1% | 23.8% | 23.2% | 20.7% | 21.8% |
| Net margin | 15.4% | 16.6% | 16.5% | 14.7% | 15.9% |
| Debt vs. cash | |||||
| Cash | $2.7B | $2.4B | $3.4B | $1.4B | $1.8B |
| Long-term debt | $18.3B | $19.4B | $11.8B | $11.2B | $10.9B |
| Net cash (debt) | −$15.6B | −$17.0B | −$8.5B | −$9.8B | −$9.2B |
What Marsh McLennan says it does
References in this report to "we", "us" and "our" are to Marsh & McLennan Companies, Inc. and its consolidated subsidiaries (the "Company" or "Marsh"), unless the context otherwise requires. Effective January 14, 2026, we updated our brand name from Marsh McLennan to Marsh and the brand names of our Marsh and Oliver Wyman Group businesses to Marsh Risk and Marsh Management Consulting, respectively. References to the Company and its businesses in this report reflect these changes. Mercer and Guy Carpenter will continue to report under their current brands through a transition period. GENERAL Marsh is a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With an annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. The Company conducts business through two segments: • Risk…