Marsh & McLennan (MRSH) Stock Analysis
This is a peer-relative look at Marsh & McLennan (MRSH): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Insurance peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | MRSH |
|---|---|
| Name | Marsh & McLennan Companies, Inc. |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Insurance Brokers |
| Market Capitalization | 84.25 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | February 21, 1973 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| Total Return (1Y) | -11.90% | 8.78% |
| Total Return (3Y, Annualized) | -0.78% | 15.39% |
| Total Return (5Y, Annualized) | 4.04% | 9.79% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 26.42% | 27.94% |
| Beta (5Y) | 0.56 | 0.53 |
| Max Drawdown (5Y) | -34.36% | -36.69% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.62 | 0.17 |
| Sortino Ratio (1Y) | -0.86 | 0.24 |
Profitability
ROE (TTM)
Marsh & McLennan (MRSH) posts ROE of 25.90%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
MRSH
Insurance industry group
25.90%
Group distribution
- Max
- 38.99%
- MRSH
- 25.90%
- Q3
- 22.13%
- Median
- 15.10%
- Q1
- 10.16%
- Min
- -3.97%
Largest peers
- PGR
- 34.94%
- TRV
- 26.51%
- MRSH
- 25.90%
- CB
- 14.82%
- MFC
- 13.31%
- MET
- 13.09%
- AJG
- 6.72%
Net Margin (TTM)
Marsh & McLennan (MRSH) keeps 14.24% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
MRSH
Insurance industry group
14.24%
Group distribution
- Max
- 37.68%
- Q3
- 19.27%
- MRSH
- 14.24%
- Median
- 11.17%
- Q1
- 5.91%
- Min
- -10.79%
Largest peers
- MFC
- 20.31%
- CB
- 18.07%
- TRV
- 16.95%
- MRSH
- 14.24%
- PGR
- 12.85%
- AJG
- 10.38%
- MET
- 4.57%
Operating Margin (TTM)
operating margin is set aside for Marsh & McLennan (MRSH) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| ROE (TTM) | 25.90% | 15.10% |
| ROA (TTM) | 7.24% | 3.13% |
| Net Margin (TTM) | 14.24% | 11.17% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Marsh & McLennan (MRSH) grew revenue 10.32%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Marsh & McLennan (MRSH) grew earnings per share 3.06%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 10.32% | 8.15% |
| Revenue Growth (3Y CAGR) | 9.20% | 11.40% |
| EPS Growth (YoY) | 3.06% | 23.05% |
| EPS Growth (3Y CAGR) | 11.75% | 18.46% |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Marsh & McLennan (MRSH) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for Marsh & McLennan (MRSH) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Marsh & McLennan (MRSH) has dividend yield of 2.10%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
MRSH
Insurance industry group
2.10%
Group distribution
- Max
- 5.72%
- Q3
- 2.46%
- MRSH
- 2.10%
- Median
- 1.24%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MFC
- 4.36%
- MET
- 2.33%
- MRSH
- 2.10%
- TRV
- 1.23%
- AJG
- 1.16%
- CB
- 1.15%
- PGR
- 0.18%
Dividend Payout Ratio (TTM)
Marsh & McLennan (MRSH) has payout ratio of 44.01%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
MRSH
Insurance industry group
44.01%
Group distribution
- Max
- 78.97%
- MRSH
- 44.01%
- Q3
- 36.72%
- Median
- 16.38%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 69.71%
- MFC
- 50.14%
- AJG
- 44.78%
- MRSH
- 44.01%
- MET
- 43.97%
- CB
- 13.92%
- TRV
- 12.22%
Dividend Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.10% | 1.24% |
| Dividend Payout Ratio (TTM) | 44.01% | 16.38% |
Valuation
P/E Ratio (TTM)
Marsh & McLennan (MRSH) trades at P/E ratio of 21.58, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
MRSH
Insurance industry group
21.58
Group distribution
- Max
- 32.09
- MRSH
- 21.58
- Q3
- 18.17
- Median
- 11.28
- Q1
- 8.40
- Min
- 2.65
Largest peers
- AJG
- 38.79
- MRSH
- 21.58
- MET
- 19.19
- MFC
- 16.05
- CB
- 12.22
- PGR
- 11.05
- TRV
- 9.98
P/S Ratio (TTM)
Marsh & McLennan (MRSH) trades at 3.01 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
MRSH
Insurance industry group
3.01
Group distribution
- Max
- 4.06
- MRSH
- 3.01
- Q3
- 2.29
- Median
- 1.23
- Q1
- 0.82
- Min
- 0.07
Largest peers
- AJG
- 3.97
- MRSH
- 3.01
- CB
- 2.15
- MFC
- 2.14
- TRV
- 1.58
- PGR
- 1.40
- MET
- 0.80
P/B Ratio (MRQ)
Marsh & McLennan (MRSH) trades at 5.56 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
MRSH
Insurance industry group
5.56
Group distribution
- MRSH
- 5.56
- Max
- 3.82
- Q3
- 2.52
- Median
- 1.81
- Q1
- 1.16
- Min
- 0.39
Largest peers
- MRSH
- 5.56
- PGR
- 3.73
- AJG
- 2.53
- TRV
- 2.34
- MET
- 2.33
- MFC
- 2.00
- CB
- 1.77
Valuation Metrics
| Metric | Current stock: MRSH | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 21.58 | 11.28 |
| P/S Ratio (TTM) | 3.01 | 1.23 |
| P/B Ratio (MRQ) | 5.56 | 1.81 |
| Free Cash Flow Yield (TTM) | -- | -- |