Marsh Mclennan Companies Stock Buy Hold or Sell Recommendation
| MMC Stock | USD 200.95 0.76 0.38% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Marsh McLennan Companies is 'Strong Hold'. Macroaxis provides Marsh McLennan buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MMC positions. The advice algorithm takes into account all of Marsh McLennan's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Marsh McLennan's buy or sell advice are summarized below:
Real Value 200.16 | Target Price 205.82 | Hype Value 200.95 | Market Value 200.95 | Naive Value 202.85 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Marsh McLennan Companies given historical horizon and risk tolerance towards Marsh McLennan. When Macroaxis issues a 'buy' or 'sell' recommendation for Marsh McLennan Companies, the advice is generated through an automated system that utilizes algorithms and statistical models.
Marsh |
Execute Marsh McLennan Buy or Sell Advice
The Marsh recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Marsh McLennan Companies. Macroaxis does not own or have any residual interests in Marsh McLennan Companies or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Marsh McLennan's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Marsh McLennan Trading Alerts and Improvement Suggestions
| Over 90.0% of the company shares are owned by institutional investors | |
| Latest headline from businesswire.com: Marsh McLennan Agency to acquire Fisher Brown Bottrell Insurance, Inc. |
Marsh McLennan Returns Distribution Density
The distribution of Marsh McLennan's historical returns is an attempt to chart the uncertainty of Marsh McLennan's future price movements. The chart of the probability distribution of Marsh McLennan daily returns describes the distribution of returns around its average expected value. We use Marsh McLennan Companies price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Marsh McLennan returns is essential to provide solid investment advice for Marsh McLennan.
| Mean Return | 0.03 | Value At Risk | -1.35 | Potential Upside | 1.65 | Standard Deviation | 0.95 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Marsh McLennan historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Marsh Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Marsh McLennan is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Marsh McLennan Companies backward and forwards among themselves. Marsh McLennan's institutional investor refers to the entity that pools money to purchase Marsh McLennan's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Goldman Sachs Group Inc | 2023-12-31 | 7.2 M | Mawer Investment Management Ltd | 2023-12-31 | 7.2 M | Bank Of America Corp | 2023-12-31 | 6.6 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 6.1 M | Northern Trust Corp | 2023-12-31 | 5.7 M | Norges Bank | 2023-12-31 | 5.5 M | Nuveen Asset Management, Llc | 2023-12-31 | 4.6 M | Legal & General Group Plc | 2023-12-31 | 4.4 M | Parnassus Investments, Llc | 2023-12-31 | 4.3 M | Vanguard Group Inc | 2023-12-31 | 43.8 M | Blackrock Inc | 2023-12-31 | 41 M |
Marsh McLennan Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 89M | 934M | 700M | 728M | 2.1B | 2.2B | |
| Free Cash Flow | 1.9B | 3.0B | 3.1B | 3.0B | 3.8B | 4.0B | |
| Depreciation | 647M | 741M | 747M | 719M | 713M | 420.4M | |
| Other Non Cash Items | 301M | 402M | (45M) | 304M | 277M | 290.9M | |
| Dividends Paid | 890M | 943M | 1.0B | 1.1B | 1.3B | 1.4B | |
| Capital Expenditures | 421M | 348M | 406M | 470M | 416M | 371.1M | |
| Net Income | 1.8B | 2.0B | 3.2B | 3.1B | 3.8B | 4.0B | |
| End Period Cash Flow | 1.2B | 2.1B | 11.4B | 12.1B | 14.2B | 14.9B | |
| Change To Netincome | 429M | 354M | (18M) | 269M | 309.4M | 248.9M | |
| Investments | 92M | 107M | 17M | (850M) | (1.4B) | (1.4B) | |
| Change Receivables | (130M) | (75M) | (252M) | (492M) | (442.8M) | (420.7M) | |
| Net Borrowings | 4.8B | (778M) | (273M) | 619M | 711.9M | 492.2M |
Marsh McLennan Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Marsh McLennan or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Marsh McLennan's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Marsh stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.01 | |
β | Beta against NYSE Composite | 0.46 | |
σ | Overall volatility | 0.83 | |
Ir | Information ratio | -0.06 |
Marsh McLennan Volatility Alert
Marsh McLennan Companies has low volatility with Treynor Ratio of 0.05, Maximum Drawdown of 4.17 and kurtosis of 3.79. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Marsh McLennan's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Marsh McLennan's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Marsh McLennan Fundamentals Vs Peers
Comparing Marsh McLennan's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Marsh McLennan's direct or indirect competition across all of the common fundamentals between Marsh McLennan and the related equities. This way, we can detect undervalued stocks with similar characteristics as Marsh McLennan or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Marsh McLennan's fundamental indicators could also be used in its relative valuation, which is a method of valuing Marsh McLennan by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Marsh McLennan to competition |
| Fundamentals | Marsh McLennan | Peer Average |
| Return On Equity | 0.33 | -0.31 |
| Return On Asset | 0.0928 | -0.14 |
| Profit Margin | 0.17 % | (1.27) % |
| Operating Margin | 0.31 % | (5.51) % |
| Current Valuation | 113.14 B | 16.62 B |
| Shares Outstanding | 492.72 M | 571.82 M |
| Shares Owned By Insiders | 0.07 % | 10.09 % |
| Shares Owned By Institutions | 89.89 % | 39.21 % |
| Number Of Shares Shorted | 3.64 M | 4.71 M |
| Price To Earning | 38.97 X | 28.72 X |
| Price To Book | 8.02 X | 9.51 X |
| Price To Sales | 4.30 X | 11.42 X |
| Revenue | 22.74 B | 9.43 B |
| Gross Profit | 8.88 B | 27.38 B |
| EBITDA | 5.28 B | 3.9 B |
| Net Income | 3.8 B | 570.98 M |
| Cash And Equivalents | 1.44 B | 2.7 B |
| Cash Per Share | 1.62 X | 5.01 X |
| Total Debt | 15.44 B | 5.32 B |
| Debt To Equity | 1.36 % | 48.70 % |
| Current Ratio | 1.04 X | 2.16 X |
| Book Value Per Share | 25.21 X | 1.93 K |
| Cash Flow From Operations | 4.26 B | 971.22 M |
| Short Ratio | 2.05 X | 4.00 X |
| Earnings Per Share | 7.88 X | 3.12 X |
| Price To Earnings To Growth | 2.43 X | 4.89 X |
| Target Price | 212.67 | |
| Number Of Employees | 85 K | 18.84 K |
| Beta | 0.9 | -0.15 |
| Market Capitalization | 99.01 B | 19.03 B |
| Total Asset | 48.03 B | 29.47 B |
| Retained Earnings | 22.76 B | 9.33 B |
| Working Capital | 1.95 B | 1.48 B |
Note: Disposition of tradable shares by Tomlinson Patrick of Marsh McLennan subject to Rule 16b-3 [view details]
Marsh McLennan Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Marsh . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Marsh McLennan Buy or Sell Advice
When is the right time to buy or sell Marsh McLennan Companies? Buying financial instruments such as Marsh Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 13.2B | 13.5B | 15.4B | 16.2B | Total Assets | 34.4B | 33.5B | 48.0B | 50.4B |
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Check out Marsh McLennan Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for Marsh Stock analysis
When running Marsh McLennan's price analysis, check to measure Marsh McLennan's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Marsh McLennan is operating at the current time. Most of Marsh McLennan's value examination focuses on studying past and present price action to predict the probability of Marsh McLennan's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Marsh McLennan's price. Additionally, you may evaluate how the addition of Marsh McLennan to your portfolios can decrease your overall portfolio volatility.
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Is Marsh McLennan's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marsh McLennan. If investors know Marsh will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marsh McLennan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.142 | Dividend Share 2.84 | Earnings Share 7.88 | Revenue Per Share 47.207 | Quarterly Revenue Growth 0.093 |
The market value of Marsh McLennan Companies is measured differently than its book value, which is the value of Marsh that is recorded on the company's balance sheet. Investors also form their own opinion of Marsh McLennan's value that differs from its market value or its book value, called intrinsic value, which is Marsh McLennan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marsh McLennan's market value can be influenced by many factors that don't directly affect Marsh McLennan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marsh McLennan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marsh McLennan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marsh McLennan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.