This firm has 15.87
B in debt with debt to equity (D/E) ratio of 2.13, meaning that Marsh McLennan Compa heavily relies on borrowing funds for operations. Macroaxis provides trade recommendations on Marsh McLennan Compa to complement and cross-verify current
analyst consensus on Marsh McLennan. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of Marsh McLennan Companies using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Marsh McLennan Companies based exclusively on its
fundamental and basic
technical indicators. By analyzing Marsh McLennan's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Marsh McLennan's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Marsh McLennan. We calculate exposure to Marsh McLennan's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Marsh McLennan's related companies.
Marsh McLennan Companies Investment Alerts
Marsh investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Marsh McLennan Companies performance across your portfolios.Please check all
investment alerts for Marsh
Marsh McLennan Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Marsh value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Marsh McLennan competition to find
correlations between indicators driving the intrinsic value of Marsh.
Marsh McLennan Gross Profit
Marsh McLennan Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Marsh McLennan previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Marsh McLennan Gross Profit growth over the last 10 years. Please check Marsh McLennan's
gross profit and other
fundamental indicators for more details.
Breaking it down
The company reported the last year's revenue of 17.23
B. Total Income to common stockholders was 1.78
B with profit before taxes, overhead, and interest of 7.34
B.
| 2019 | 2020 (projected) |
Consolidated Income | 1.77 B | 1.7 B | Direct Expenses | 27.27 M | 27.99 M |
Margins Breakdown
Marsh profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Marsh McLennan itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Marsh McLennan profit margins.
| Operating Margin | (103.45) |
| EBITDA Margin | 0.22 |
| Gross Margin | 0.89 |
| Profit Margin | 0.11 |
Marsh McLennan Revenue Per Employee is somewhat stable at the moment. Also, Marsh McLennan Average Assets is increasing over the last 8 years. The current value of Marsh McLennan Average Assets is 27,083,644,737.
Will Marsh pull back in August 2020?
Marsh McLennan current market risk adjusted performance builds up over 0.54. As of the 30th of July, Marsh McLennan secures the Risk Adjusted Performance of 0.3505,
mean deviation of 1.11, and Downside Deviation of 1.71. In connection with
fundamental indicators, the
technical analysis model lets you check existing technical drivers of Marsh McLennan Compa, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We have analyze and collected data for nineteen
technical drivers for Marsh McLennan, which can be compared to its peers in the industry. Please verify
Marsh McLennan Compa variance,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
semi variance to decide if Marsh McLennan Companies is priced some-what accurately, providing market reflects its recent price of 116.71 per share. Given that Marsh McLennan Compa has
jensen alpha of 0.2145, we recommend you to check Marsh McLennan's last-minute market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Marsh McLennan Investment
Whereas some firms under the insurance brokers industry are still a bit expensive, Marsh McLennan may offer a potential longer-term growth to investors. In closing, as of the 30th of July 2020, we believe that Marsh McLennan is currently
undervalued with
low probability of financial unrest in the next two years. Our up-to-date 30 days buy vs. sell advice on the company is
Strong Buy.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Marsh McLennan Companies. Please refer to our
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