US3635761097 - Common Stock

We assign a fundamental rating of **5** out of 10 to **AJG**. **AJG** was compared to 140 industry peers in the **Insurance** industry. While **AJG** has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, **AJG** is valued expensive at the moment.

Each year in the past 5 years **AJG** has been profitable.

Measured over the past 3 years, the **Average Return On Invested Capital** for **AJG** is above the industry average of **4.21%**.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 1.88% | ||

ROE | 9% | ||

ROIC | 6.95% |

ROA(3y)2.5%

ROA(5y)2.92%

ROE(3y)10.61%

ROE(5y)11.61%

ROIC(3y)7.65%

ROIC(5y)7.37%

The **Profit Margin** of **AJG** (**9.63%**) is better than **62.41%** of its industry peers.

In the last couple of years the **Profit Margin** of **AJG** has remained more or less at the same level.

Looking at the **Operating Margin**, with a value of **17.38%**, **AJG** is in the better half of the industry, outperforming **74.47%** of the companies in the same industry.

The **Gross Margin** of **AJG** (**44.85%**) is better than **94.33%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 17.38% | ||

PM (TTM) | 9.63% | ||

GM | 44.85% |

OM growth 3Y2.39%

OM growth 5Y14.92%

PM growth 3Y-6.27%

PM growth 5Y1.05%

GM growth 3Y6.87%

GM growth 5Y9.78%

Based on the Altman-Z score of **1.22**, we must say that **AJG** is in the distress zone and has some risk of bankruptcy.

The **Altman-Z score** of **AJG** (**1.22**) is better than **87.23%** of its industry peers.

Looking at the **Debt to FCF ratio**, with a value of **4.33**, **AJG** is in line with its industry, outperforming **43.26%** of the companies in the same industry.

With a **Debt to Equity ratio** value of **0.68**, **AJG** is not doing good in the industry: **70.92%** of the companies in the same industry are doing better.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.68 | ||

Debt/FCF | 4.33 | ||

Altman-Z | 1.22 |

ROIC/WACC0.84

WACC8.29%

A Current Ratio of **1.03** indicates that **AJG** should not have too much problems paying its short term obligations.

Looking at the **Quick ratio**, with a value of **1.03**, **AJG** is in the better half of the industry, outperforming **79.43%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.03 | ||

Quick Ratio | 1.03 |

The **Earnings Per Share** has been growing by **20.54%** on average over the past years. This is a very strong growth

Looking at the last year, **AJG** shows a quite strong growth in **Revenue**. The Revenue has grown by **17.79%** in the last year.

The **Revenue** has been growing slightly by **7.75%** on average over the past years.

EPS 1Y (TTM)16.6%

EPS 3Y22.9%

EPS 5Y20.54%

EPS growth Q2Q42.31%

Revenue 1Y (TTM)17.79%

Revenue growth 3Y12.87%

Revenue growth 5Y7.75%

Revenue growth Q2Q19.9%

EPS Next Y17.4%

EPS Next 2Y15.08%

EPS Next 3Y12.69%

EPS Next 5YN/A

Revenue Next Year13.87%

Revenue Next 2Y12.17%

Revenue Next 3Y12.27%

Revenue Next 5YN/A

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.

Based on the **Price/Earnings** ratio of **27.90**, the valuation of **AJG** can be described as expensive.

Based on the **Price/Earnings** ratio, **AJG** is valued a bit more expensive than 66.67% of the companies in the same industry.

With a **Price/Forward Earnings** ratio of **23.77**, **AJG** is valued on the expensive side.

When comparing the **Price/Forward Earnings** ratio of **AJG** to the average of the S&P500 Index (**21.62**), we can say **AJG** is valued inline with the index average.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 27.9 | ||

Fwd PE | 23.77 |

Compared to the rest of the industry, the **Enterprise Value to EBITDA** ratio of **AJG** is on the same level as its industry peers.

Compared to the rest of the industry, the **Price/Free Cash Flow** ratio of **AJG** indicates a slightly more expensive valuation: **AJG** is more expensive than 60.99% of the companies listed in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 28.88 | ||

EV/EBITDA | 24.44 |

The **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

PEG (NY)1.6

PEG (5Y)1.36

EPS Next 2Y15.08%

EPS Next 3Y12.69%

With a **Dividend Yield** of **0.98**, **AJG** pays less dividend than the S&P500 average, which is at **2.45**.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 0.98% |

The dividend of **AJG** has a limited annual growth rate of **5.97%**.

Dividend Growth(5Y)5.97%

Div Incr Years13

Div Non Decr Years20

The dividend of **AJG** is growing, but earnings are growing more, so the dividend growth is sustainable.

DP48.85%

EPS Next 2Y15.08%

EPS Next 3Y12.69%

**ARTHUR J GALLAGHER & CO**

NYSE:AJG (2/23/2024, 7:04:00 PM)

After market: 245 0 (0%)**245**

**+0.33 (+0.13%) **

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupInsurance

GICS IndustryInsurance

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap53.09B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 0.98% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

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EPS beat(16)

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Revenue beat(2)

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Revenue beat(4)

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Revenue beat(16)

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PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 27.9 | ||

Fwd PE | 23.77 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)1.6

PEG (5Y)1.36

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 1.88% | ||

ROE | 9% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 17.38% | ||

PM (TTM) | 9.63% | ||

GM | 44.85% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.2

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.68 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.03 | ||

Quick Ratio | 1.03 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)16.6%

EPS 3Y22.9%

EPS 5Y

EPS growth Q2Q

EPS Next Y17.4%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)17.79%

Revenue growth 3Y12.87%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

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EBIT Next 5Y

FCF growth 1Y

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OCF growth 1Y

OCF growth 3Y

OCF growth 5Y