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Jan 31, 2025 2:00 AM - Danny Green
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Marsh & McLennan Companies, Inc. (NYSE:MMC) is a leading global professional services firm offering advice and solutions in risk, strategy, and people. Competing in the insurance brokerage industry against firms like Aon and Willis Towers Watson, MMC has consistently demonstrated strong financial performance.
On January 30, 2025, MMC reported an Earnings Per Share (EPS) of $1.87, surpassing the estimated $1.75. This represents an earnings surprise of 6.86%, as highlighted by Zacks. The EPS also increased from $1.68 in the same quarter last year, showcasing the company's growth.
MMC's revenue for the quarter ending December 2024 was approximately $6.07 billion, exceeding the estimated $5.97 billion. This revenue figure represents a 2.54% surprise over the Zacks Consensus Estimate and an improvement from $5.55 billion a year ago. The company's strong revenue performance highlights its ability to generate consistent growth in the competitive insurance brokerage industry.
The company's financial metrics provide further insight into its market valuation. MMC's price-to-earnings (P/E) ratio is about 26.71, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at approximately 4.43, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 5.23, suggesting how the market values the company's total worth relative to its sales.
MMC's financial health is also evident in its debt-to-equity ratio of approximately 1.62, highlighting its financial leverage. The current ratio of about 1.13 suggests the company's ability to cover short-term liabilities with short-term assets. With an earnings yield of about 3.74%, MMC provides insight into the return on investment for shareholders, further solidifying its position as a strong player in the industry.
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