📊 MRSH Key Takeaways
Is Marsh & Mclennan Companies, Inc.. (MRSH) a Good Investment?
Marsh & McLennan demonstrates strong operational performance with 10.3% revenue growth and 23.1% operating margins, but is severely hampered by negative operating cash flow of -$688M and negative free cash flow of -$750M despite reporting $1.1B net income. The combination of significant cash burn, elevated debt-to-equity of 1.32x, and tight liquidity creates material financial risk that outweighs operational strengths.
Strong top-line growth, high operating margins, and excellent free cash flow conversion indicate a durable, asset-light model with disciplined capital needs. While net income dipped slightly YoY, EPS still grew and interest coverage is very strong, suggesting manageable leverage and resilient profitability.
Marsh & Mclennan Companies, Inc.. Key Strengths (MRSH)
- Strong operating margin of 23.1% and net margin of 15.1% demonstrate operational efficiency
- Solid revenue growth of 10.3% YoY showing market traction and demand
- Healthy interest coverage ratio of 11.0x provides cushion for debt service despite elevated leverage
- 23% operating margin with double-digit revenue growth
- Robust FCF ($5.0B) and 18.5% FCF margin with low capex
- High ROE (27.2%) and strong interest coverage (39.1x)
MRSH Stock Risks: Marsh & Mclennan Companies, Inc.. Investment Risks
- Negative operating cash flow of -$688M despite positive net income indicates potential working capital dysfunction or accounting quality concerns
- Negative free cash flow of -$750M is unsustainable and severely constrains financial flexibility for debt repayment or strategic investments
- High debt-to-equity ratio of 1.32x combined with cash burn creates acute refinancing and solvency risks in economic downturns
- Margin pressure evidenced by slight YoY net income decline
- Moderate leverage (1.28x D/E) could bite if rates or M&A rise
- Exposure to macro/insurance pricing cycles impacting client spend
Key Metrics to Watch
- Operating cash flow recovery - must turn positive to validate business sustainability
- Working capital management - to diagnose source of cash conversion failure
- Debt reduction and cash position - given negative cash generation limits debt service capacity
- Operating margin trend
- Organic revenue growth
Marsh & Mclennan Companies, Inc.. (MRSH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Marsh & Mclennan Companies, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
MRSH Profit Margin, ROE & Profitability Analysis
MRSH vs Finance Sector: How Marsh & Mclennan Companies, Inc.. Compares
How Marsh & Mclennan Companies, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Marsh & Mclennan Companies, Inc.. Stock Overvalued? MRSH Valuation Analysis 2026
Based on fundamental analysis, Marsh & Mclennan Companies, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Marsh & Mclennan Companies, Inc.. Balance Sheet: MRSH Debt, Cash & Liquidity
MRSH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Marsh & Mclennan Companies, Inc..'s revenue has grown significantly by 10% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.53 reflects profitable operations.
MRSH Revenue Growth, EPS Growth & YoY Performance
MRSH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.1B | $1.1B | $2.36 |
| Q3 2025 | $5.7B | $747.0M | $1.51 |
| Q2 2025 | $6.2B | $1.1B | $2.27 |
| Q1 2025 | $6.5B | $1.4B | $2.79 |
| Q3 2024 | $5.4B | $730.0M | $1.47 |
| Q2 2024 | $5.9B | $1.0B | $2.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Marsh & Mclennan Companies, Inc.. Dividends, Buybacks & Capital Allocation
MRSH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Marsh & Mclennan Companies, Inc.. (CIK: 0000062709)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MRSH
What is the AI rating for MRSH?
Marsh & Mclennan Companies, Inc.. (MRSH) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MRSH's key strengths?
Claude: Strong operating margin of 23.1% and net margin of 15.1% demonstrate operational efficiency. Solid revenue growth of 10.3% YoY showing market traction and demand. ChatGPT: 23% operating margin with double-digit revenue growth. Robust FCF ($5.0B) and 18.5% FCF margin with low capex.
What are the risks of investing in MRSH?
Claude: Negative operating cash flow of -$688M despite positive net income indicates potential working capital dysfunction or accounting quality concerns. Negative free cash flow of -$750M is unsustainable and severely constrains financial flexibility for debt repayment or strategic investments. ChatGPT: Margin pressure evidenced by slight YoY net income decline. Moderate leverage (1.28x D/E) could bite if rates or M&A rise.
What is MRSH's revenue and growth?
Marsh & Mclennan Companies, Inc.. reported revenue of $7.6B.
Does MRSH pay dividends?
Marsh & Mclennan Companies, Inc.. pays dividends, with $440.0M distributed to shareholders in the trailing twelve months.
Where can I find MRSH SEC filings?
Official SEC filings for Marsh & Mclennan Companies, Inc.. (CIK: 0000062709) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MRSH's EPS?
Marsh & Mclennan Companies, Inc.. has a diluted EPS of $2.36.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MRSH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Marsh & Mclennan Companies, Inc.. has a B grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MRSH stock overvalued or undervalued?
Valuation metrics for MRSH: ROE of 7.7% (sector avg: 12%), net margin of 15.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is MRSH's AI grade for 2026?
Our dual AI analysis gives Marsh & Mclennan Companies, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MRSH's free cash flow?
Marsh & Mclennan Companies, Inc..'s operating cash flow is $-688.0M, with capital expenditures of $62.0M. FCF margin is -9.9%.
How does MRSH compare to other Finance stocks?
Vs Finance sector averages: Net margin 15.1% (avg: 25%), ROE 7.7% (avg: 12%), current ratio 1.11 (avg: 1.2).