Marsh & McLennan Companies, Inc.
Marsh & McLennan Companies, Inc. Fundamental Analysis
Marsh & McLennan Companies, Inc. (MSN.DE) shows moderate financial fundamentals with a PE ratio of 15.21, profit margin of 15.42%, and ROE of 29.38%. The company generates $31.5B in annual revenue with moderate year-over-year growth of 7.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MSN.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakMSN.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateMSN.DE shows balanced valuation metrics.
Growth Score
ModerateMSN.DE shows steady but slowing expansion.
Financial Health Score
WeakMSN.DE carries high financial risk with limited liquidity.
Profitability Score
ExcellentMSN.DE achieves industry-leading margins.
Key Financial Metrics
Is MSN.DE Expensive or Cheap?
P/E Ratio
MSN.DE trades at 15.21 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MSN.DE's PEG of 8.42 indicates potential overvaluation.
Price to Book
The market values Marsh & McLennan Companies, Inc. at 4.19 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.31 times EBITDA. This is generally considered low.
How Well Does MSN.DE Make Money?
Net Profit Margin
For every $100 in sales, Marsh & McLennan Companies, Inc. keeps $15.42 as profit after all expenses.
Operating Margin
Core operations generate 23.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.38 in profit for every $100 of shareholder equity.
ROA
Marsh & McLennan Companies, Inc. generates $7.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marsh & McLennan Companies, Inc. produces operating cash flow of $6.19B, showing steady but balanced cash generation.
Free Cash Flow
Marsh & McLennan Companies, Inc. generates strong free cash flow of $5.93B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.24 in free cash annually.
FCF Yield
MSN.DE converts 6.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How MSN.DE Stacks Against Its Sector Peers
| Metric | MSN.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.21 | 18.66 | Better (Cheaper) |
| ROE | 29.38% | 804.00% | Weak |
| Net Margin | 15.42% | 2258.00% | Weak |
| Debt/Equity | 1.52 | 1.03 | Weak (High Leverage) |
| Current Ratio | 0.52 | 662.03 | Weak Liquidity |
| ROA | 7.09% | -24049.00% (disorted) | Weak |
MSN.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marsh & McLennan Companies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.06%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
139.70%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
87.40%
Industry Style: Value, Dividend, Cyclical
High Growth