Marsh & McLennan Companies Inc (MMC, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $205.29, Marsh & McLennan Companies Inc has witnessed a daily gain of 3.88%, marked against a three-month change of 4.27%. A thorough analysis, underlined by the GF Score, suggests that Marsh & McLennan Companies Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 8/10
Marsh & McLennan Companies Inc's GF Score is particularly impressive in areas of profitability and growth, with high ranks of 9/10 and 10/10 respectively. While its financial strength and GF Value ranks are moderate at 5/10, the company's momentum is strong with an 8/10 rank. These rankings reflect a company that is not only growing and profitable but also has a positive trend in stock price movement. GuruFocus assigned Marsh & McLennan Companies Inc a GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding Marsh & McLennan Companies Inc's Business
Marsh & McLennan Companies Inc, with a market cap of $101.32 billion and sales of $22.74 billion, operates as a professional services firm offering advice and solutions in risk, strategy, and human capital. The company's operating margin stands at 23.23%, reflecting its efficiency in managing expenses relative to revenue. Marsh & McLennan Companies Inc operates through two main segments: risk and insurance services, and consulting. The risk and insurance services are provided through Marsh (an insurance broker) and Guy Carpenter (a risk and reinsurance specialist), while the consulting division includes Mercer (a provider of human resource services) and Oliver Wyman (a management and economic consultancy). Approximately half of its revenue is generated outside the U.S., indicating a diversified global presence.
Profitability Rank Breakdown
The Profitability Rank of Marsh & McLennan Companies Inc is a testament to its superior ability to generate profits compared to its peers. The company's Operating Margin has shown a significant increase over the past five years, climbing from 16.08% in 2019 to 23.23% in 2023. This upward trend is mirrored in its Gross Margin, which has also seen a steady rise, indicating Marsh & McLennan Companies Inc's growing efficiency in converting sales into profits.
The company's financial health is further reinforced by a strong Piotroski F-Score, which evaluates its profitability, funding, and operating efficiency. Additionally, Marsh & McLennan Companies Inc's Predictability Rank of 4.0 stars out of five highlights its consistent operational performance, offering investors a reliable investment option.
Growth Rank Breakdown
Marsh & McLennan Companies Inc's high Growth Rank reflects its commitment to expanding its business. The company's 3-Year Revenue Growth Rate of 10.6% surpasses 64.62% of the companies in the Insurance industry. This is complemented by a robust increase in EBITDA over the past few years, with a three-year growth rate of 17 and a five-year rate of 16.2, showcasing Marsh & McLennan Companies Inc's sustained ability to drive growth and profitability.
Next Steps
Considering Marsh & McLennan Companies Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. As Marsh & McLennan Companies Inc continues to navigate the complexities of the professional services sector, its solid financial foundation and strategic growth initiatives position it as a compelling choice for value investors seeking market outperformance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
