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1. Company Snapshot

1.a. Company Description

Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide.It operates in two segments, Risk and Insurance Services, and Consulting.The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance and reinsurance broking, catastrophe and financial modeling, and related advisory services; and insurance program management services.


This segment serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients.The Consulting segment provides health, wealth, and career consulting services and products; and specialized management, as well as economic and brand consulting services.Marsh & McLennan Companies, Inc.


was founded in 1871 and is headquartered in New York, New York.

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1.b. Last Insights on MMC

Marsh & McLennan's recent performance was negatively impacted by valuation concerns, with a 'HOLD' rating from Quant and Wall Street, reflecting caution amid macroeconomic conditions and revised earnings forecasts. Despite solid Q3 growth, including 11% revenue growth and 13% adjusted operating income growth, higher expenses may weigh on earnings momentum. Analysts have slashed their forecasts following Q3 earnings, and the company's high valuation has consistently been a concern, leading to a cautious stance.

1.c. Company Highlights

2. Marsh & McLennan Companies' Strong 2025 Results and Promising 2026 Outlook

Marsh & McLennan Companies, Inc. reported a robust 2025 performance, with total revenue growing 10% to $27 billion, driven by underlying revenue growth of 4%. The company's adjusted operating income increased 11% to $7.3 billion, while adjusted EPS grew 9% to $1.68, slightly below analyst estimates of $1.97. The company's free cash flow grew 25%, and it invested approximately $850 million in acquisitions, while returning significant capital to shareholders through a 10% increase in the quarterly dividend and $2 billion in share repurchases.

Publication Date: Feb -01

📋 Highlights
  • Revenue & Profit Growth:: 2025 total revenue rose 10% to $27 billion; adjusted operating income grew 11% to $7.3 billion, with adjusted EPS up 9%.
  • Capital Returns & Free Cash Flow:: Free cash flow surged 25%, while $2 billion was spent on share repurchases and a 10% dividend increase.
  • Thrive Program & Capital Deployment:: $5 billion planned for 2026 in dividends, M&A ($850M acquired in 2025), and share buybacks, aligned with the Thrive Program’s efficiency goals.
  • Digital Infrastructure Momentum:: $3 trillion in client digital infrastructure investments over five years, with Marsh US leading $205 billion in data center construction packages.
  • Reinsurance Expansion:: 2026 anticipates $10 billion in new reinsurance premiums, driven by casualty and specialty lines amid rising cost-of-risk pressures.

Business Segment Performance

The company's digital infrastructure practice is well-positioned to capitalize on the $3 trillion expected to be invested in digital infrastructure over the next five years. Marsh US had a leading market share of $205 billion in data center construction packages. The reinsurance business is seeing significant opportunities in 2026, with up to $10 billion of new premium entering the market. Mercer is helping clients with talent and workforce strategies, while Marsh Management Consulting is working with clients to integrate strategy, risk, and execution planning.

Thrive Program and Growth Initiatives

The Thrive Program aims to provide greater financial flexibility and organizational agility over the next three years. The company plans to deploy approximately $5 billion of capital across dividends, acquisitions, and share repurchases in 2026. The program is expected to enable the company to accelerate investment in market-facing talent and drive revenue growth. The company sees opportunities across all its businesses, with a similar environment expected in 2026 compared to 2025.

Valuation and Outlook

With a P/E Ratio of 22.03 and an EV/EBITDA of 15.0, the company's valuation appears reasonable. The Dividend Yield is 1.87%, and the Free Cash Flow Yield is 5.23%. For 2026, the company expects underlying revenue growth similar to 2025, with continued margin expansion and solid adjusted EPS growth. Analysts estimate revenue growth of 5.3% for the next year. The company's strong track record and growth initiatives position it well for future success.

3. NewsRoom

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Bridges Investment Management Inc. Acquires 3,177 Shares of Marsh & McLennan Companies, Inc. $MMC

Feb -02

Source: defenseworld.net

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Marsh & McLennan Companies, Inc. $MMC Stake Lessened by Bank of New York Mellon Corp

Jan -29

Source: defenseworld.net

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Belpointe Asset Management LLC Acquires 3,987 Shares of Marsh & McLennan Companies, Inc. $MMC

Jan -29

Source: defenseworld.net

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Marsh & McLennan Companies, Inc. $MMC Position Cut by Baillie Gifford & Co.

Jan -25

Source: defenseworld.net

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Dynasty Wealth Management LLC Sells 7,008 Shares of Marsh & McLennan Companies, Inc. $MMC

Jan -21

Source: defenseworld.net

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Fluke Networks Launches CertiFiber Max, Setting a New Benchmark for High-Density Multi-Fiber Testing in Data Centers

Jan -20

Source: globenewswire.com

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Fluke Networks Launches CertiFiber Max, Setting a New Benchmark for High-Density Multi-Fiber Testing in Data Centres

Jan -20

Source: globenewswire.com

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Marsh & McLennan Companies, Inc. $MMC Shares Sold by Commonwealth Equity Services LLC

Jan -11

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.88%)

6. Segments

Risk and Insurance Services

Expected Growth: 6.5%

Marsh & McLennan's Risk and Insurance Services growth of 6.5% is driven by increased demand for risk management and insurance solutions, expanding global presence, and strategic acquisitions. Strong performance in commercial P&C and cyber insurance, alongside investments in digital capabilities, also contribute to growth.

Consulting

Expected Growth: 7.5%

Marsh & McLennan's consulting growth of 7.5% is driven by increasing demand for risk management and strategic advice. The company's expertise in areas like cyber risk, climate change, and digital transformation is fueling growth. Additionally, its global reach and strong client relationships are enabling cross-selling and upselling opportunities, contributing to the segment's growth.

Corporate/Eliminations

Expected Growth: 5.0%

The 5.0% growth in Corporate/Eliminations for Marsh & McLennan Companies, Inc. is driven by increased investment income, improved operational efficiency, and strategic investments in digital transformation, partially offset by higher expenses. This segment's growth is also influenced by intersegment eliminations and allocations, impacting overall financial performance.

7. Detailed Products

Risk Advisory Services

Marsh & McLennan's risk advisory services help clients identify, assess, and mitigate risks to their business operations.

Insurance Broking

Marsh & McLennan's insurance broking services connect clients with insurance providers, helping them find the right coverage for their business needs.

Reinsurance Services

Marsh & McLennan's reinsurance services help insurance companies manage their risk and increase their capacity to underwrite policies.

Human Capital Consulting

Marsh & McLennan's human capital consulting services help organizations design and implement effective HR strategies and benefits programs.

Mercer Investments

Mercer Investments, a Marsh & McLennan company, provides investment consulting and management services to institutional investors.

Oliver Wyman Consulting

Oliver Wyman, a Marsh & McLennan company, provides strategic consulting services to the financial services industry.

8. Marsh & McLennan Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Marsh & McLennan Companies, Inc. operates in a highly competitive industry, but the threat of substitutes is moderate due to the complexity of the services offered.

Bargaining Power Of Customers

Marsh & McLennan Companies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Marsh & McLennan Companies, Inc. has a strong bargaining position with its suppliers due to its large size and scale of operations.

Threat Of New Entrants

The insurance brokerage industry has high barriers to entry, making it difficult for new entrants to compete with established players like Marsh & McLennan Companies, Inc.

Intensity Of Rivalry

The insurance brokerage industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.87%
Debt Cost 4.95%
Equity Weight 44.13%
Equity Cost 8.41%
WACC 6.48%
Leverage 126.62%

11. Quality Control: Marsh & McLennan Companies, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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M&T Bank

A-Score: 6.2/10

Value: 6.5

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

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Prudential Financial

A-Score: 6.0/10

Value: 7.0

Growth: 3.4

Quality: 5.3

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

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Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

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Marsh McLennan

A-Score: 5.3/10

Value: 3.3

Growth: 6.6

Quality: 6.4

Yield: 3.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

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Brown & Brown

A-Score: 5.2/10

Value: 3.4

Growth: 7.4

Quality: 8.2

Yield: 1.0

Momentum: 2.0

Volatility: 9.0

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Arthur J Gallagher

A-Score: 4.6/10

Value: 1.9

Growth: 6.7

Quality: 5.8

Yield: 2.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

182.7$

Current Price

182.7$

Potential

-0.00%

Expected Cash-Flows