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Is this Large Market Cap Stock target price reasonable for Marsh & McLennan Companies, Inc. (NYSE:MMC)?

The company in question is, Marsh & McLennan Companies, Inc. (NYSE:MMC) currently with a stock price of 66.41 (0.68% today). The market cap for Marsh & McLennan Companies, Inc. is 34607.89, and is in the sector Financial, and Insurance Brokers industry. The target price for Marsh & McLennan Companies, Inc. is 67.38. Currently Marsh & McLennan Companies, Inc. is trading with a P/E of 21.95, and a forward P/E of 17.48. Average volume for Marsh & McLennan Companies, Inc. is 2081.09 and so far today it is 571825.

Performance in the last year for Marsh & McLennan Companies, Inc. has been 15.10%. For EPS growth, Marsh & McLennan Companies, Inc. has seen a growth of 14.60%, and is looking to grow in the next year to 11.23%. More long term stats show that EPS growth has been 24.50% over the last five years and could be 11.56% for the next five years. Marsh & McLennan Companies, Inc. has seen sales growth quarter over quarter at 3.80%, with EPS growth quarter over quarter at 2.80%. The 20-day simple moving average is 0.99%, with the 200-day simple moving average coming to 13.38%.

Since the IPO date for Marsh & McLennan Companies, Inc. on the 12/30/1987, Marsh & McLennan Companies, Inc. has seen performance year to date to be 20.90%. With Marsh & McLennan Companies, Inc. trading at 66.41, the dividend yield is 2.06%, and the EPS is 3.01.

So could Marsh & McLennan Companies, Inc., be undervalued? Well as said before P/E is 21.95. The PEG is 1.9, P/S is 2.66 and the P/B is at 5.15. The P/cash is 37.7, with P/free cash flow at 38.33.

Marsh & McLennan Companies, Inc. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.5. This is with long term debt/equity at 0.71, and total debt/equity at 0.75.

In terms of margins, Marsh & McLennan Companies, Inc. has a gross margin of 42.70%, an operating margin of 18.60% and a profit margin of 12.30%.Payout ratio for Marsh & McLennan Companies, Inc. is 39.80%. Return on assets come to 8.90% with return on investment coming to 16.00%.

Insider ownership for Marsh & McLennan Companies, Inc., is at 0.20% and institutional ownership comes to 86.60%. Outstanding shares are at 524.68. While shares float is 520.12. The float short is currently 1.26%, and short ratio is 3.15.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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