MMC

Based on the available fundamental and valuation data, MMC presents a mixed picture for investors.

Analysis Summary MMC demonstrates operational strength through consistent revenue growth, healthy profit margins (12.4% net), and stable operational efficiency. Its financial health is adequate, with manageable leverage and sufficient liquidity. However, valuation metrics are a significant concern. While the trailing P/E of 21.9 seems reasonable, the forward P/E of 27.5, exceptionally high EV/EBITDA of 72.5, and elevated PEG ratio of 2.5 suggest the stock is richly priced relative to its growth and cash flow. The lack of technical and complete peer comparison data adds uncertainty, preventing a full assessment of its market momentum and relative value.

Recommendation A cautious approach is advised. The company's high-quality fundamentals are appealing for long-term investors seeking a stable, profitable business in the professional services sector. However, the demanding valuation multiples indicate limited near-term upside potential and pose a risk of price correction if growth expectations are not met. Investors might consider waiting for a more attractive entry point or a market pullback before initiating a position. This is not investment advice, for reference only.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the comprehensive analysis provided, here is a 12-month outlook for MMC:

The outlook for MMC over the next 12 months is characterized by solid fundamentals weighed against premium valuation. Key catalysts will be the company's ability to meet or exceed the high growth expectations already priced in, likely driven by its consistent revenue expansion and operational efficiency in the professional services sector. The primary risk is valuation-related, as the rich forward P/E and exceptionally high EV/EBITDA multiples create vulnerability to a price correction if quarterly results merely meet, rather than surpass, market expectations. Given the lack of a specific analyst target, the stock's performance will likely hinge on this growth-versus-valuation dynamic, suggesting a range-bound to cautiously optimistic trajectory absent a broader market pullback that could provide a more attractive entry point.

Wall Street Consensus

Most Wall Street analysts are optimistic about MMC's 12-month outlook, with consensus target around $0.00, indicating expected upside potential.

Overall, MMC has investment potential but also faces challenges. Here are key factors to weigh before investing.

MMC's technical analysis cannot be completed due to insufficient price performance data, rendering comprehensive assessment impossible.

Critical price metrics including current price, 1-month and 3-month changes, relative strength, and 52-week range parameters are unavailable, preventing any meaningful short-term trend analysis or market comparison. Without these fundamental data points, volatility characteristics and momentum signals cannot be properly evaluated.

The absence of key technical benchmarks, particularly the current price relative to its 52-week high/low and maximum drawdown, makes it impossible to determine MMC's current technical position or trading dynamics. Investors should seek complete pricing information before attempting any technical assessment of this security.

Revenue & Profitability MMC demonstrated solid revenue growth with Q4 2025 revenue reaching $6.6 billion, up from $6.4 billion in Q3. The company maintained healthy profitability with a net profit margin of 12.4% in Q4, slightly improving from 11.8% in the previous quarter. Operating margins remained stable at approximately 18.5%, indicating consistent operational efficiency.

Financial Health MMC maintains moderate leverage with a debt-to-equity ratio of 1.40, though the interest coverage ratio of 5.2 provides adequate earnings protection. The current ratio of 1.10 suggests sufficient short-term liquidity, while the cash flow to debt ratio of 0.10 indicates moderate debt servicing capacity from operating cash flows.

Operational Efficiency The company achieves a respectable return on equity of 5.4%, supported by an asset turnover of 0.11. Fixed asset turnover of 2.88 demonstrates effective utilization of property and equipment. However, days sales outstanding of 105 suggests room for improvement in working capital management and receivables collection efficiency.

Valuation Level: Marsh & McLennan's current TTM PE ratio of 21.9 appears reasonable at first glance, though the elevated forward PE of 27.5 suggests expectations for higher future earnings. However, the extremely high EV/EBITDA ratio of 72.5 and a concerning PEG ratio of 2.5 indicate the stock may be overvalued relative to its growth prospects and underlying cash flow generation.

Peer Comparison: Without specific industry average data for comparison, a definitive relative valuation assessment cannot be made. The elevated PEG and EV/EBITDA ratios would typically warrant caution, but a conclusive determination of overvaluation relative to professional services or insurance brokerage peers requires benchmark industry multiples for proper context.

Volatility risk for MMC appears relatively contained based on its Beta of 0.752, indicating it is historically less volatile than the broader market. However, the lack of available maximum drawdown data prevents a full assessment of its downside risk during adverse market conditions. Consequently, while the stock suggests lower systematic risk, the absence of recent stress-testing metrics like drawdown limits a complete volatility profile.

Other risks are difficult to quantify precisely due to missing short interest and liquidity data. Without short interest figures, it is impossible to gauge speculative sentiment or the potential for a short squeeze. Similarly, absent liquidity metrics, assessing the ease of entering or exiting positions without significant price impact remains uncertain.