How Is Marsh & McLennan Companies Inc. (MMC)’s Price-To-Earnings Ratio?


As of Friday close, Marsh & McLennan Companies Inc.’s (NYSE:MMC) stock was down -$2.89, moving down -1.82 percent to $155.80. The average number of shares traded per day over the past five days has been 2,751,540 shares. 2 times new highs have been achieved over the past 5 days, with a -$1.40 fall in that time frame. In the last twenty days, the average volume was 1,820,680, while in the previous 50 days, it was 1,678,240.

Since last month, MMC stock retreated -7.30%. Shares of the company fell to $151.86 on 03/15/23, the lowest level in the past month. A 52-week high of $183.14 was reached on 02/01/23 after having rallying from a 52-week low of $143.33. Since the beginning of this year, MMC’s stock price has dropped by -5.85% or -$9.68, and marked a new high 9 times. However, the stock has declined by -14.93% since its 52-week high.

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MMC stock investors should be aware that Marsh & McLennan Companies Inc. (MMC) stock had its last reported insider trading activity 12 days ago on Mar 06. Klisura Dean Michael, the President & CEO, Guy Carpenter of the company, disposed of 3,140 shares for $165.22 on Mar 06. It resulted in a $518,791 divestment by the insider. MCGIVNEY MARK C sold 11,531 shares at an average price of $162.41 on Mar 03. The insider now owns 33,678 shares following the transaction. On Mar 03, Vice President and Controller Mills Stacy sold 1,276 shares at $162.41 apiece. The transaction was valued at $207,235.

Valuation Metrics

Right now, Marsh & McLennan Companies Inc. (MMC) has a P/E ratio of about 25.84. The stock’s beta is 0.92. Besides these, the trailing price-to-sales (P/S) ratio of 3.76, the price-to-book (PB) ratio of 7.30, and the price-to-cash flow ratio of 41.92 may also be considered.

The latest dividend of $0.59 per share was paid out, remained unchanged from last year’s $0.59.

Financial Health

In the three months ended December 30, Marsh & McLennan Companies Inc.’s quick ratio stood at 1.20, while its current ratio was 1.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 1.07, and the total debt-to-equity ratio was 1.09. In the year ended December 30, operating margins totaled 20.70%. Based on annual data, MMC earned $4.28 billion in gross profit and brought in $20.72 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.90%. Return on equity (ROE) for the past 12 months was 29.20%.

In Marsh & McLennan Companies Inc.’s quarter-end financial report for December 30, it reported total debt of $11.23 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. MMC’s revenue fell -3.04% to $4.77 billion during the quarter, while net income inched up to $5.0 billion. While analysts expected Marsh & McLennan Companies Inc. to report $1.41 quarterly earnings, the actual figure was $1.47 per share, beating the consensus estimate by 4.30%. During the quarter, the company generated $882.0 million in EBITDA. The value of shareholders’ equity is $494.57 million.

Technical Picture

This quick technical analysis looks at Marsh & McLennan Companies Inc.’s (MMC) price momentum. With a historical volatility rate of 25.65%, the RSI 9-day stood at 37.24% on 17 March.

With respect to its five-day moving average, the current Marsh & McLennan Companies Inc. price is down by -0.89% percent or -$1.40. At present, MMC shares trade -6.43% below its 20-day simple moving average and +0.56% percent above its 100-day simple moving average. However, the stock is currently trading approximately -7.93% below its SMA50 and -2.59% below its SMA200.

Stochastic coefficient K was 31.47% and Stochastic coefficient D was 25.61%, while ATR was 3.70. Given the Stochastic reading of 28.63% for the 14-day period, the RSI (14) reading has been calculated as 36.97%. As of today, the MACD Oscillator reading stands at -1.77, while the 14-day reading stands at -3.57.

Analyst Ratings

MKM Partners reiterated its a Neutral rating on Marsh & McLennan Companies Inc. (NYSE: MMC) in a note to investors. The analysts firm has however raised their price target to $175, representing a possible 2.62% increase in the stock price. Marsh & McLennan Companies Inc. (MMC) has been rated Hold by analysts. According to 0 brokerage firms, MMC is a sell, and 13 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 1 analyst rate Marsh & McLennan Companies Inc. stock as buy, with 5 recommending it as overweight.

With a median target price of $184.00, the current consensus forecast for the stock is $168.00 – $207.00. Based on these forecasts, analysts predict Marsh & McLennan Companies Inc. (MMC) will achieve an average price target of $184.71.


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