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ARTHUR J GALLAGHER & CO (NYSE:AJG) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Nov 20, 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.

Key Considerations for Quality Investors.

  • The 5-year revenue growth of ARTHUR J GALLAGHER & CO has been remarkable, with 6.47% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 47.31%, ARTHUR J GALLAGHER & CO showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • ARTHUR J GALLAGHER & CO maintains a healthy Debt/Free Cash Flow Ratio of 4.99, 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 experienced impressive EBIT growth over the past 5 years, with 31.72% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • ARTHUR J GALLAGHER & CO demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

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.

Overall AJG gets a fundamental rating of 5 out of 10. We evaluated AJG against 141 industry peers in the Insurance industry. While AJG belongs to the best of the industry regarding profitability, 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 ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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ARTHUR J GALLAGHER & CO

NYSE:AJG (5/24/2024, 7:13:22 PM)

After market: 252.06 0 (0%)

252.06

+1.1 (+0.44%)

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. today announced the acquisition of Melbourne, Victoria-based Health Insurance Consultants Australia (HICA). Terms of...

News Imagea month ago - InvestorPlaceAJG Stock Earnings: Arthur J. Gallagher Beats EPS, Beats Revenue for Q1 2024

AJG stock results show that Arthur J. Gallagher beat analyst estimates for earnings per share and beat on revenue for the first quarter of 2024.

News Imagea month ago - BusinessInsiderAJG Stock Earnings: Arthur J. Gallagher Beats EPS, Beats Revenue for Q1 2024

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Arthur J. Gallagher (NYSE:AJG) just reported results for the first quarter of 2...

News Imagea month ago - Arthur J. Gallagher & Co.Arthur J. Gallagher & Co. Announces First Quarter 2024 Financial Results

/PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended March 31, 2024. Management will host a webcast...

News Imagea month ago - Arthur J. Gallagher & Co.Arthur J. Gallagher & Co. Announces Regular Second Quarter Dividend

/PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today declared a regular quarterly cash dividend of sixty cents ($0.60) per share on the Common Stock of...

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/PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Australia-based Prasidium Credit Insurance (Prasidium). Terms of the transaction...

News Imagea month ago - Arthur J. Gallagher & Co.Arthur J. Gallagher & Co. Acquires Fontenelle & Goodreau Insurance, LLC

/PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Metairie, Louisiana-based Fontenelle & Goodreau Insurance, LLC. Terms of the...

News Imagea month ago - Market News VideoArthur J. Gallagher is Now Oversold (AJG)
News Image2 months ago - Arthur J. Gallagher & Co.Arthur J. Gallagher & Co. Announces First Quarter 2024 Earnings Release And Conference Call Date

/PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) will release its first quarter 2024 earnings after the market closes on Thursday, April 25, 2024. A...

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