MARSH & MCLENNAN COMPANIES, INC.

MRSH
About the company

Marsh & McLennan Companies, Inc., a professional services company, provides advisory services and insurance solutions to clients in the areas of risk, strategy, and people worldwide. The company operates through Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment offers risk management services, such as risk management, insurance broking, insurance program management, risk consulting, analytical modeling, and alternative risk financing services.

Country: United StatesPrice: $170.42Market Cap: $81.3B

Investment snapshot

53%positive consensus
Scored 37d ago

Positive

8

BUY / PASS

Neutral / negative

1 / 6

NEUTRAL / FAIL

Median fair value

$129.60

-24.0% vs price

Models with upside

3 / 15

Positive margin of safety

Strongest signal

7 of 8 pass — Lynch objects

Key risk

9 of 11 flag MRSH's valuation — Oshaughnessy, Lynch, Pabrai +6 more

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K37d ago
MetricO'Shaughnessy

Systematic Factor Composite

Lynch

GARP

Buffett

Quality Compounder

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Munger

Quality Focus

Marks

Risk-Aware Value

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Graham

Defensive Value

VerdictFAILFAILPASSFAILFAILPASSFAILFAILNEUTRALBUYPASSBUYPASSBUYPASS
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/A
Margin of SafetyN/A-23.0%+20.9%-62.8%+49.9%-20.7%-113.8%N/AN/AN/A-56.4%+31.8%-41.2%N/A-120.2%
Data As Of10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)

Where It Passes

  • Growth88% pass✓ 11✗ 1▾

    7 of 8 pass — Lynch objects

    Basic earnings-growth PEG (dividends excluded)1.23
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR16.4%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    Positive Net Income Frequency17/18 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3-5 Year Diluted EPS CAGR16.4% over 5 years
    ✓Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin 23.2% -> 23.1%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR9.4%
    ✓SleepCAGR > 7%
    5-Year EPS CAGR16.4% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    3yr Median Revenue Growth9.7%
    ✓Ackman>= 5%
    Positive EPS Growth Frequency4/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction$-0.14 (2008) -> $8.43 (2025)
    ✓DremanPositive over recent years
    EPS CAGR20.6% CAGR over 16 years
    ✓Dreman> 5% annualized
    EPS Growth (3-yr avg, 10-yr window)1219.1%
    ✓Graham>= 33% growth
  • Cash Flow70% pass✓ 9✗ 3▾

    7 of 10 pass — Oshaughnessy, Pabrai and Dreman object

    (Operating cash flow - capex) / market capitalization+6.15%; #1238/4487 (top 27.6%)
    ✗OshaughnessyTop 10% of eligible cross-section
    FCF Positive and Growing$5.0B
    ✓LynchPositive and growing
    Free Cash Flow Proxy$4.2B
    ✓BuffettPositive and growing
    P/E or FCF YieldP/E=20.2x, FCF Yield=6.1%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    FCF Positive18/18 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    Operating Cash Flow - Capital Expenditures$5.0B
    ✓Neff> $0 (app proxy for a strong fundamental case)
    Positive Operating Cash Flow frequency18/18 years positive
    ✓SleepPositive OCF in >= 70% of available years
    (OCF - CapEx) / Market Cap6.1%
    ✓Ackman>= 4%
    Price / FCF per Share16.5x
    ✓Ackman<= 25
    Price / (CFO / Shares)15.6x
    ✗Dreman< 8x
    Operating Cash Flow$5.3B
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=9.01%, ROA=7.09%
    ✓PiotroskiCFO/Assets > ROA
  • Verdicts57% pass✓ 8✗ 6▾

    Split decision: 6 FAIL · 5 PASS · 3 BUY · 1 NEUTRAL

    Overall verdict
    ✗OshaughnessyFAIL (Rank #535/953 (Top 56.1%))✗LynchFAIL (3/6)✓BuffettPASS (3/7)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✓MungerPASS (2/4)✗MarksFAIL (3/5)✗SchlossFAIL (3/7)•NeffNEUTRAL (5/6)✓SleepBUY (6/6)✓TempletonPASS (4/8)✓AckmanBUY (8/9)✓DremanPASS (5/10)✓PiotroskiBUY (F-Score 6)✓GrahamPASS (3/7)

Where It Falls Short

  • Valuation18% pass✓ 5✗ 19▾

    9 of 11 flag MRSH's valuation — Oshaughnessy, Lynch, Pabrai +6 more

    Revenue / market capitalization+0.3318; #3028/5203 (top 58.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+5.12%; #1549/6251 (top 24.8%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+6.15%; #1238/4487 (top 27.6%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-1.75%; #3342/6203 (top 53.9%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)1.23
    ✗Lynch< 1.0 (ideally < 0.5)
    P/E or FCF YieldP/E=20.2x, FCF Yield=6.1%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Valuation ReasonablenessP/E=20.2x, OE Yield=5.1%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    P/B or P/E vs. Historical AverageP/E=20.2x, P/B=5.4x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-41.2% (IV=$120.70 vs Price=$170.42)
    ✗Marks>= 20% below intrinsic value
    Price / Book Value per Share5.40x
    ✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
    Price / Tangible Book Value per ShareN/A (non-positive TBVPS)
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change+73.2%
    ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS20.2x
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E0.91
    ✓Neff> 0.7 (Neff's published traditional edge)
    Price / EPS20.2x
    ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
    Price vs. Trailing Low102% of trailing low ($167.71)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    Price / FCF per Share16.5x
    ✓Ackman<= 25
    Price / (CFO / Shares)15.6x
    ✗Dreman< 8x
    Price / 3-yr avg EPS21.2x
    ✗Graham<= 15x
    Price-to-Book Ratio5.4x
    ✗Graham<= 1.5x
    P/E x P/B114.30
    ✗Graham<= 22.5
  • Debt & Leverage20% pass✓ 2✗ 10▾

    8 of 10 flag MRSH's debt & leverage — Lynch, Buffett, Akre +5 more

    Total Debt / Equity1.28
    ✗Lynch< 0.33
    Cash - Long-term Debt$-15.6B
    ✗LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 1.28, IC: 7.0x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Debt Levels1.28
    ✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
    Interest Coverage & Debt/EBITDAIC=7.0x, D/EBITDA=3.0x
    ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders' Equity1.28x
    ✗SchlossD/E < 1.00x✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗Dreman< 0.8
    Current Assets / Current Liabilities1.10x
    ✗SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders Equity1.28
    ✗Ackman<= 1.0
    LT Debt / Total Assets Change34.40% -> 31.20%
    ✓PiotroskiDecreased YoY
  • Valuation models30% pass✓ 3✗ 7▾

    Models split on MRSH at $170.42 — fair values range $77.39–$340.15

    Lynch fair value$138.51
    ✗Lynch-23.0% margin vs $170.42
    Buffett fair value$215.55
    ✓Buffett+20.9% margin vs $170.42
    Pabrai fair value$104.70
    ✗Pabrai-62.8% margin vs $170.42
    Akre fair value$340.15
    ✓Akre+49.9% margin vs $170.42
    Munger fair value$141.18
    ✗Munger-20.7% margin vs $170.42
    Marks fair value$79.71
    ✗Marks-113.8% margin vs $170.42
    Templeton fair value$108.93
    ✗Templeton-56.4% margin vs $170.42
    Ackman fair value$249.77
    ✓Ackman+31.8% margin vs $170.42
    Dreman fair value$120.70
    ✗Dreman-41.2% margin vs $170.42
    Graham fair value$77.39
    ✗Graham-120.2% margin vs $170.42
  • Profitability43% pass✓ 18✗ 10▾

    8 of 14 flag MRSH's profitability — Oshaughnessy, Lynch, Buffett +5 more

    Net income / market capitalization+5.12%; #1549/6251 (top 24.8%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)1.23
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR16.4%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    ROE27.2%
    ✓Lynch> 15%
    Net Income Positive (10+ years)17/18 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)28.8%
    ✓Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)23.1% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$4.2B
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)0.66
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Margin of SafetyP/E=20.2x, P/B=5.4x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity29.2% (3-yr avg)
    ✓AkreROE > 20% (3-year avg)
    Discount to Intrinsic Value-41.2% (IV=$120.70 vs Price=$170.42)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency17/18 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Positive Diluted-EPS Years10/10 years positive
    ✓Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR16.4% over 5 years
    ✓Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin 23.2% -> 23.1%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR16.4% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend23.2% (2023) -> 23.1% (2025)
    ✗TempletonNon-negative operating-margin trend over 3 years
    Operating Income / Revenue23.1%
    ✓Ackman>= 15%
    Net Income / Shareholders Equity27.2%
    ✓Ackman>= 15%
    Pre-Tax Income / Revenue20.5%
    ✓Dreman>= 8%
    Net Income / Shareholders' Equity27.2%
    ✓Dreman> 12%
    Net Income / Total Assets7.09%
    ✓PiotroskiROA > 0
    ROA Change YoY7.19% -> 7.09% (delta: -0.10%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=9.01%, ROA=7.09%
    ✓PiotroskiCFO/Assets > ROA
    Positive EPS (10 years)17/18 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)1219.1%
    ✓Graham>= 33% growth
  • Efficiency50% pass✓ 2✗ 3▾

    2 of 4 pass — Akre and Munger object

    ROIC (high and growing)FY2023: ROIC=16.2%; FY2024: ROIC=13.7%; FY2025: ROIC=14.1%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC8.3% (RR=59% x ROIC=14.1%)
    ✗AkreReinvestment Rate * ROIC > 10%
    Return on Invested Capital14.1%
    ✗Munger> 15%
    ROIC (5-year)5/5 years above 12% (latest 14.1%)
    ✓SleepROIC > 12% in a majority of years
    Revenue / Total Assets Change YoY0.43x -> 0.46x
    ✓PiotroskiImproved YoY

Business & financials

Company Profile

Industry: Insurance
SIC Sector: Insurance Agents & Brokers
Size: Large Cap($81.3B)
Revenue: $27.0B+10.3% YoY
Net Income: $4.2B+2.5% YoY

Financial Snapshot

Operating Margin23.1%
Return on Equity27.2%
Debt / Equity1.28
Current Ratio1.10
EPS (Diluted)$8.43+3.1% 1y
Buybacks (1y)$2.0B
Buybacks (2y)$2.9B
Shares Retired1.2% / 1.4% 2y

Similar Companies

UNHUNITEDHEALTH GROUP INC
$336.5B
PGRPROGRESSIVE CORP/OH/
$122.2B
CILJFCHINA LIFE INSURANCE CO LTD
$107.4B
AONAon plc
$58.5B
Sector-adjusted criteria: Insurer

Insurers file unclassified balance sheets with no inventory or current accounts, so those criteria are omitted rather than failed for missing data. Return-on-invested-capital tests are omitted too: float funds the balance sheet but never appears in invested capital, and the portfolio it is invested in would be subtracted as spare cash. Debt tests are kept — an insurer’s borrowings are real leverage on top of underwriting.

Shareholder Return

Fiscal 2025

Retired 1.2% of shares last year, 1.4% over two.

Buybacks
$2.0B
Dividends
$1.7B

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
−1.5% = −3.0% + 1.5%
FY23
24.7% = 23.1% + 1.2%
FY24
8.6% = 8.1% + 0.5%
FY25
3.1% = 2.5% + 0.6%
Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$81.3B$103.7Best.$91.6Best.$82.0Best.$72.3Best.
Revenue$27.0B↑10%$24.5B↑8%$22.7B↑10%$20.7B↑5%$19.8B
Operating Income$6.2B↑7%$5.8B↑10%$5.3B↑23%$4.3B↓1%$4.3B
Net Income$4.2B↑2%$4.1B↑8%$3.8B↑23%$3.0B↓3%$3.1B
EPS (Diluted)$8.43↑3%$8.18↑9%$7.53↑25%$6.04↓1%$6.13
Gross Margin—————
Operating Margin23.1%↓3%23.8%↑2%23.2%↑12%20.7%↓5%21.8%
ROE27.2%↓9%30.0%↓1%30.4%↑7%28.4%↑1%28.0%
Total Debt$19.6B↓2%$19.9B↑48%$13.5B↑17%$11.5B↑5%$10.9B
Shareholders' Equity$15.3B↑13%$13.5B↑9%$12.4B↑15%$10.7B↓4%$11.2B
Current Ratio1.10↓3%1.13↑3%1.10↑3%1.06↓14%1.24
Debt / Equity1.28↓13%1.47↑35%1.09↑2%1.07↑10%0.98
Operating Cash Flow$5.3B↑23%$4.3B↑1%$4.3B↑23%$3.5B↓1%$3.5B
Free Cash Flow$5.0B↑25%$4.0B↑4%$3.8B↑28%$3.0B↓4%$3.1B

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Insurance

MRSH vs Peers — Financial Grading

Revenue$27.0BMedian
Net Income$4.2BMedian
ROE27.2%Median
D/E1.28Bottom 25%
Op. Margin23.1%Median
Curr. Ratio1.10Median
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchPiotroskiDreman
UNITEDHEALTH GROUP INCUNH$336.5B$374.94$447.6B$12.1B12.0%0.784.2%0.793/74/70/6F-Score 63/10
PROGRESSIVE CORP/OH/PGR$122.2B$210.52$87.7B$11.3B37.3%0.23——2/72/75/6F-Score 68/10
CHINA LIFE INSURANCE CO LTDCILJF$107.4B$3.80——————3/71/73/6F-Score 55/10
Aon plcAON$58.5B$275.90$17.2B$3.7B39.5%1.6325.3%1.112/74/73/6F-Score 63/10
AFLAC INCAFL$57.0B$113.66$17.2B$3.6B12.4%0.29——3/74/72/6F-Score 44/10
HUMANA INCHUM$46.5B$386.87$129.7B$1.2B6.7%0.702.1%2.003/72/70/6F-Score 44/10
SUN LIFE FINANCIAL INCSLF$44.0B$79.06$30.6B$2.6B14.5%0.33——3/73/72/6F-Score 65/10
HARTFORD INSURANCE GROUP, INC.HIG$34.8B$125.85$28.4B$3.8B20.2%0.23——4/73/74/6F-Score 78/10