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Exploring NYSE:AJG's quality characteristics.

By Mill Chart

Last update: Sep 15, 2023

In this article we will dive into ARTHUR J GALLAGHER & CO (NYSE:AJG) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ARTHUR J GALLAGHER & CO showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:AJG may be interesting for quality investors.

  • ARTHUR J GALLAGHER & CO has shown strong performance in revenue growth over the past 5 years, with a 6.47% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 47.61%, ARTHUR J GALLAGHER & CO demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of ARTHUR J GALLAGHER & CO stands at 4.41, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • ARTHUR J GALLAGHER & CO exhibits impressive Profit Quality (5-year) with a 160.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • ARTHUR J GALLAGHER & CO has demonstrated consistent growth in EBIT over the past 5 years, with a strong 31.72%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, ARTHUR J GALLAGHER & CO showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:AJG

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

AJG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 142 industry peers in the Insurance industry. While AJG has a great profitability rating, there are some minor concerns on its financial health. AJG is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of AJG contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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