- Marsh & McLennan adjusted EPS stands at $2.89 surpassing last year’s $2.53 as well as the estimated $2.80.
- Revenue has seen an increase of 9.3% to $6.47 billion from last year’s $6.38 billion.
- Adjusted operating margin has registered a slight improvement to 32% versus 31.2% of last year.
- Risk & Insurance Services adjusted operating margin slightly went up to 39.1% from last year’s 38.6%.
- The adjusted operating margin for the Consulting segment increased from 20.3% to 20.7%.
- Adjusted operating income observed an 11% growth to $1.97 billion in comparison to last year’s estimate of $1.95 billion.
- Risk & Insurance Services segment adjusted operating profit has increased by 11% to $1.59 billion from the estimated $1.57 billion of previous year.
- Consulting segment’s adjusted operating profit went up by 9.4% to $444 million.
- Underlying revenue increased by 9% which is significantly higher than the estimated increase of 6.23%.
- Capital expenditure observed a minor increase by 3.6% reaching $87 million.
- There was an 8.2% increase in compensation expenses which resulted in a total of $3.47 billion, exceeding last year’s estimate of $3.35 billion.
- Marsh & McLennan’s CEO, John Doyle, commented by stating that the year had a terrific start, indicating continued momentum in their business.
- The stock currently has 5 buys, 14 holds, 3 sells.
Marsh & Mclennan on Smartkarma
Analyst coverage of Marsh & McLennan on Smartkarma showcases a positive sentiment towards the company. Value Investors Club‘s report highlights Marsh McLennan as the largest global insurance broker with strong organic growth potential. The current valuation at $198 is considered fair, offering potential 5-year returns of 12% IRR. Additionally, Baptista Research emphasizes Marsh & McLennan Companies’ robust financial performance, with total revenue of $22.7 billion marking a growth of 10% for the fiscal year.
Baptista Research further notes Marsh McLennan’s recent acquisitions and strategic initiatives contributing to its growth trajectory. These acquisitions include McDonald Zaring Insurance and Graham Company, enhancing the company’s market presence and revenue potential. Overall, the analyst coverage on Smartkarma underscores Marsh & McLennan’s positive market position and growth prospects within the insurance sector.
A look at Marsh & Mclennan Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Marsh & McLennan Companies, Inc. is positioned for a promising long-term outlook based on the Smartkarma Smart Scores. With a solid Growth score of 4 and Momentum score of 4, the company demonstrates strong potential for expanding its operations and maintaining positive market performance. These scores indicate a positive trajectory for Marsh & McLennan in terms of both future growth opportunities and current market sentiment.
Although the Value, Dividend, and Resilience scores fall in the middle range at 2, Marsh & McLennan’s focus on providing professional services in risk, strategy, and human capital bodes well for its overall stability and sustainability. This suggests that the company is well-positioned to weather market fluctuations and continue offering valuable advice and solutions to its clients worldwide. Overall, Marsh & McLennan’s Smart Scores showcase a promising outlook for the company’s future prospects in the professional services sector.
###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
