US3635761097 - Common Stock

We assign a fundamental rating of **6** out of 10 to **AJG**. **AJG** was compared to 141 industry peers in the **Insurance** industry. **AJG** has an excellent profitability rating, but there are some minor concerns on its financial health. **AJG** is valued quite expensively, but it does show have an excellent growth rating.

In the past year **AJG** was profitable.

In the past year **AJG** had a positive cash flow from operations.

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

Each year in the past 5 years **AJG** had a positive operating cash flow.

Looking at the **Return On Assets**, with a value of **1.81%**, **AJG** is in line with its industry, outperforming **51.80%** of the companies in the same industry.

Measured over the past 3 years, the **Average Return On Invested Capital** for **AJG** is above the industry average of **4.02%**.

The 3 year average ROIC (**7.65%**) for **AJG** is below the current ROIC(**8.02%**), indicating increased profibility in the last year.

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

ROA | 1.81% | ||

ROE | 9.85% | ||

ROIC | 8.02% |

ROA(3y)2.5%

ROA(5y)2.92%

ROE(3y)10.61%

ROE(5y)11.61%

ROIC(3y)7.65%

ROIC(5y)7.37%

Looking at the **Profit Margin**, with a value of **10.41%**, **AJG** is in the better half of the industry, outperforming **66.19%** of the companies in the same industry.

In the last couple of years the **Operating Margin** of **AJG** has grown nicely.

The **Gross Margin** of **AJG** (**44.85%**) is better than **94.24%** of its industry peers.

In the last couple of years the **Gross Margin** of **AJG** has grown nicely.

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

OM | 19.11% | ||

PM (TTM) | 10.41% | ||

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%

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), **AJG** is destroying value.

The number of shares outstanding for **AJG** has been increased compared to 1 year ago.

The number of shares outstanding for **AJG** has been increased compared to 5 years ago.

Compared to 1 year ago, **AJG** has an improved debt to assets ratio.

Based on the Altman-Z score of **1.16**, we must say that **AJG** is in the distress zone and has some risk of bankruptcy.

With a **Debt to FCF ratio** value of **3.55**, **AJG** is not doing good in the industry: **60.43%** of the companies in the same industry are doing better.

The **Debt to Equity ratio** of **AJG** (**0.69**) is worse than **75.54%** of its industry peers.

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

Debt/Equity | 0.69 | ||

Debt/FCF | 3.55 | ||

Altman-Z | 1.16 |

ROIC/WACC0.98

WACC8.16%

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

Current Ratio | 1.04 | ||

Quick Ratio | 1.04 |

The **Earnings Per Share** has grown by an impressive **20.75%** over the past year.

Looking at the last year, **AJG** shows a quite strong growth in **Revenue**. The Revenue has grown by **18.82%** in the last year.

EPS 1Y (TTM)20.75%

EPS 3Y22.9%

EPS 5Y20.54%

EPS Q2Q%18.95%

Revenue 1Y (TTM)18.82%

Revenue growth 3Y12.87%

Revenue growth 5Y7.75%

Sales Q2Q%13.78%

Based on estimates for the next years, **AJG** will show a quite strong growth in **Revenue**. The Revenue will grow by **11.06%** on average per year.

EPS Next Y17.1%

EPS Next 2Y14.52%

EPS Next 3Y12.95%

EPS Next 5Y12.87%

Revenue Next Year14.91%

Revenue Next 2Y12.59%

Revenue Next 3Y11.06%

Revenue Next 5YN/A

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.

With a **Price/Earnings** ratio of **29.94**, **AJG** can be considered very expensive at the moment.

Compared to the rest of the industry, the **Price/Earnings** ratio of **AJG** indicates a slightly more expensive valuation: **AJG** is more expensive than 72.66% of the companies listed in the same industry.

Compared to an average S&P500 **Price/Earnings** ratio of **31.52**, **AJG** is valued at the same level.

With a **Price/Forward Earnings** ratio of **24.96**, **AJG** is valued on the expensive side.

Based on the **Price/Forward Earnings** ratio, **AJG** is valued a bit more expensive than 74.10% of the companies in the same industry.

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

PE | 29.94 | ||

Fwd PE | 24.96 |

71.94% of the companies in the same industry are cheaper than **AJG**, based on the **Price/Free Cash Flow** ratio.

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

P/FCF | 26.99 | ||

EV/EBITDA | 24.26 |

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

The excellent profitability rating of **AJG** may justify a higher PE ratio.

PEG (NY)1.75

PEG (5Y)1.46

EPS Next 2Y14.52%

EPS Next 3Y12.95%

With a **Dividend Yield** of **0.84**, **AJG** pays less dividend than the S&P500 average, which is at **2.22**.

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

Dividend Yield | 0.84% |

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

Dividend Growth(5Y)5.97%

Div Incr Years13

Div Non Decr Years33

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

DP43.82%

EPS Next 2Y14.52%

EPS Next 3Y12.95%

**ARTHUR J GALLAGHER & CO**

NYSE:AJG (10/14/2024, 9:43:46 AM)

**287.4**

**-0.51 (-0.18%) **

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupInsurance

GICS IndustryInsurance

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap62.97B

Analysts

Price Target

Dividend

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

Dividend Yield | 0.84% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

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EPS beat(4)

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EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

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 | 29.94 | ||

Fwd PE | 24.96 | ||

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)1.75

PEG (5Y)1.46

Profitability

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

ROA | 1.81% | ||

ROE | 9.85% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 19.11% | ||

PM (TTM) | 10.41% | ||

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 Turnover0.17

Health

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

Debt/Equity | 0.69 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.04 | ||

Quick Ratio | 1.04 | ||

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)

High Growth Momentum

Growth

EPS 1Y (TTM)20.75%

EPS 3Y22.9%

EPS 5Y

EPS Q2Q%

EPS Next Y17.1%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)18.82%

Revenue growth 3Y12.87%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y