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Why NYSE:AJG qualifies as a quality stock.

By Mill Chart

Last update: Oct 6, 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.

Some of the quality metrics of NYSE:AJG highlighted

  • ARTHUR J GALLAGHER & CO has achieved substantial revenue growth over the past 5 years, with a 6.47% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • ARTHUR J GALLAGHER & CO exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 47.61% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • ARTHUR J GALLAGHER & CO maintains a healthy Debt/Free Cash Flow Ratio of 4.41, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • 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 consistently achieved strong EBIT growth over the past 5 years, with a 31.72% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of ARTHUR J GALLAGHER & CO has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, AJG scores 6 out of 10 in our fundamental rating. AJG was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of AJG

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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ARTHUR J GALLAGHER & CO

NYSE:AJG (2/21/2024, 7:25:13 PM)

After market: 240.1 0 (0%)

240.1

-1.64 (-0.68%)

AJG News

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/PRNewswire/ -- Arthur J. Gallagher & Co. today announced that its U.S. wholesale brokerage, binding authority and programs division, Risk Placement Services,...

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/PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter and full year ended December 31, 2023. Management...

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