ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AJG • US3635761097
241.58 USD
-1.17 (-0.48%)
At close: Feb 6, 2026
238 USD
-3.58 (-1.48%)
After Hours: 2/6/2026, 8:17:27 PM
Taking everything into account, AJG scores 5 out of 10 in our fundamental rating. AJG was compared to 147 industry peers in the Insurance industry. AJG has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, AJG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- AJG had positive earnings in the past year.
- In the past year AJG had a positive cash flow from operations.
- Each year in the past 5 years AJG has been profitable.
- AJG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- AJG has a Return On Assets (2.03%) which is comparable to the rest of the industry.
- The Return On Equity of AJG (6.90%) is worse than 70.07% of its industry peers.
- AJG's Return On Invested Capital of 6.66% is amongst the best of the industry. AJG outperforms 86.39% of its industry peers.
- AJG had an Average Return On Invested Capital over the past 3 years of 6.08%. This is significantly below the industry average of 14.93%.
- The last Return On Invested Capital (6.66%) for AJG is above the 3 year average (6.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 6.9% | ||
| ROIC | 6.66% |
ROA(3y)2.09%
ROA(5y)2.38%
ROE(3y)7.55%
ROE(5y)9.1%
ROIC(3y)6.08%
ROIC(5y)6.68%
1.3 Margins
- AJG's Profit Margin of 12.29% is fine compared to the rest of the industry. AJG outperforms 65.99% of its industry peers.
- In the last couple of years the Profit Margin of AJG has declined.
- The Operating Margin of AJG (24.80%) is better than 83.67% of its industry peers.
- AJG's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 46.39%, AJG belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
- AJG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.8% | ||
| PM (TTM) | 12.29% | ||
| GM | 46.39% |
OM growth 3Y-7.08%
OM growth 5Y1.59%
PM growth 3Y-6.31%
PM growth 5Y-1.73%
GM growth 3Y-1.32%
GM growth 5Y2.99%
2. Health
2.1 Basic Checks
- AJG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, AJG has more shares outstanding
- Compared to 5 years ago, AJG has more shares outstanding
- Compared to 1 year ago, AJG has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.11, we must say that AJG is in the distress zone and has some risk of bankruptcy.
- AJG has a better Altman-Z score (1.11) than 81.63% of its industry peers.
- AJG has a debt to FCF ratio of 7.42. This is a slightly negative value and a sign of low solvency as AJG would need 7.42 years to pay back of all of its debts.
- AJG has a worse Debt to FCF ratio (7.42) than 68.03% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that AJG is somewhat dependend on debt financing.
- The Debt to Equity ratio of AJG (0.53) is worse than 74.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.84
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
- AJG has a Current ratio of 1.06. This is amongst the best in the industry. AJG outperforms 80.27% of its industry peers.
- A Quick Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
- AJG has a better Quick ratio (1.06) than 80.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- AJG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.52%.
- The Earnings Per Share has been growing by 17.73% on average over the past years. This is quite good.
- The Revenue has grown by 20.66% in the past year. This is a very strong growth!
- Measured over the past years, AJG shows a quite strong growth in Revenue. The Revenue has been growing by 14.76% on average per year.
EPS 1Y (TTM)5.52%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%11.74%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%33.71%
3.2 Future
- AJG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.16% yearly.
- The Revenue is expected to grow by 12.15% on average over the next years. This is quite good.
EPS Next Y25.46%
EPS Next 2Y18.6%
EPS Next 3Y16.6%
EPS Next 5Y19.16%
Revenue Next Year21.92%
Revenue Next 2Y15.64%
Revenue Next 3Y13.38%
Revenue Next 5Y12.15%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.58, which indicates a rather expensive current valuation of AJG.
- Compared to the rest of the industry, the Price/Earnings ratio of AJG indicates a slightly more expensive valuation: AJG is more expensive than 72.79% of the companies listed in the same industry.
- AJG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.92.
- The Price/Forward Earnings ratio is 18.00, which indicates a rather expensive current valuation of AJG.
- Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than 67.35% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.78. AJG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AJG is valued a bit more expensive than 65.31% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.1 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AJG has a very decent profitability rating, which may justify a higher PE ratio.
- AJG's earnings are expected to grow with 16.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)1.27
EPS Next 2Y18.6%
EPS Next 3Y16.6%
5. Dividend
5.1 Amount
- AJG has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.21, AJG has a dividend in line with its industry peers.
- AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
- The dividend of AJG has a limited annual growth rate of 5.46%.
- AJG has paid a dividend for at least 10 years, which is a reliable track record.
- AJG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.46%
Div Incr Years14
Div Non Decr Years34
5.3 Sustainability
- AJG pays out 39.43% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AJG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.43%
EPS Next 2Y18.6%
EPS Next 3Y16.6%
241.58
-1.17 (-0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners91.72%
Inst Owner Change-2.1%
Ins Owners0.59%
Ins Owner Change-1.75%
Market Cap62.04B
Revenue(TTM)13.94B
Net Income(TTM)1.60B
Analysts75.56
Price Target294.58 (21.94%)
Short Float %2.1%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend2.25
Dividend Growth(5Y)5.46%
DP39.43%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-06 2026-03-06 (0.7)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.16%
Min EPS beat(2)-9.74%
Max EPS beat(2)-2.57%
EPS beat(4)2
Avg EPS beat(4)-1.8%
Min EPS beat(4)-9.74%
Max EPS beat(4)3.69%
EPS beat(8)3
Avg EPS beat(8)-1.04%
EPS beat(12)6
Avg EPS beat(12)-1.62%
EPS beat(16)10
Avg EPS beat(16)-0.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.77%
Min Revenue beat(2)-4.64%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.9%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)2
Avg Revenue beat(12)-0.9%
Revenue beat(16)5
Avg Revenue beat(16)-0.09%
PT rev (1m)-0.51%
PT rev (3m)-12.12%
EPS NQ rev (1m)-3.07%
EPS NQ rev (3m)-9.06%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-3.96%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 18 | ||
| P/S | 4.76 | ||
| P/FCF | 35.1 | ||
| P/OCF | 32.37 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.55 |
EPS(TTM)10.7
EY4.43%
EPS(NY)13.42
Fwd EY5.56%
FCF(TTM)6.88
FCFY2.85%
OCF(TTM)7.46
OCFY3.09%
SpS50.74
BVpS90.36
TBVpS-38.01
PEG (NY)0.89
PEG (5Y)1.27
Graham Number147.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 6.9% | ||
| ROCE | 8.44% | ||
| ROIC | 6.66% | ||
| ROICexc | 6.91% | ||
| ROICexgc | 61.39% | ||
| OM | 24.8% | ||
| PM (TTM) | 12.29% | ||
| GM | 46.39% | ||
| FCFM | 13.56% |
ROA(3y)2.09%
ROA(5y)2.38%
ROE(3y)7.55%
ROE(5y)9.1%
ROIC(3y)6.08%
ROIC(5y)6.68%
ROICexc(3y)7.79%
ROICexc(5y)7.81%
ROICexgc(3y)51.82%
ROICexgc(5y)44.98%
ROCE(3y)7.73%
ROCE(5y)8.51%
ROICexgc growth 3Y9%
ROICexgc growth 5Y13.31%
ROICexc growth 3Y-16.39%
ROICexc growth 5Y-7.32%
OM growth 3Y-7.08%
OM growth 5Y1.59%
PM growth 3Y-6.31%
PM growth 5Y-1.73%
GM growth 3Y-1.32%
GM growth 5Y2.99%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 7.42 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 15.31% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 5.99 | ||
| Cash Conversion | 45.57% | ||
| Profit Quality | 110.37% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.11 |
F-Score6
WACC7.95%
ROIC/WACC0.84
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.52%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%11.74%
EPS Next Y25.46%
EPS Next 2Y18.6%
EPS Next 3Y16.6%
EPS Next 5Y19.16%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%33.71%
Revenue Next Year21.92%
Revenue Next 2Y15.64%
Revenue Next 3Y13.38%
Revenue Next 5Y12.15%
EBIT growth 1Y46.9%
EBIT growth 3Y9.36%
EBIT growth 5Y16.59%
EBIT Next Year66.72%
EBIT Next 3Y24.77%
EBIT Next 5Y20.2%
FCF growth 1Y-26.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.47%
OCF growth 3YN/A
OCF growth 5YN/A
ARTHUR J GALLAGHER & CO / AJG FAQ
Can you provide the ChartMill fundamental rating for ARTHUR J GALLAGHER & CO?
ChartMill assigns a fundamental rating of 5 / 10 to AJG.
What is the valuation status of ARTHUR J GALLAGHER & CO (AJG) stock?
ChartMill assigns a valuation rating of 2 / 10 to ARTHUR J GALLAGHER & CO (AJG). This can be considered as Overvalued.
How profitable is ARTHUR J GALLAGHER & CO (AJG) stock?
ARTHUR J GALLAGHER & CO (AJG) has a profitability rating of 7 / 10.
How financially healthy is ARTHUR J GALLAGHER & CO?
The financial health rating of ARTHUR J GALLAGHER & CO (AJG) is 4 / 10.
Can you provide the dividend sustainability for AJG stock?
The dividend rating of ARTHUR J GALLAGHER & CO (AJG) is 6 / 10 and the dividend payout ratio is 39.43%.