ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AJG - US3635761097 - Common Stock
258.52 USD
+2.37 (+0.93%)
258.52 USD
0 (0%)
Overall AJG gets a fundamental rating of 5 out of 10. We evaluated AJG against 146 industry peers in the Insurance industry. AJG has an excellent profitability rating, but there are concerns on its financial health. AJG is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- AJG had positive earnings in the past year.
- AJG had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- AJG has a Return On Assets (2.03%) which is in line with its industry peers.
- AJG has a Return On Equity of 6.90%. This is in the lower half of the industry: AJG underperforms 70.55% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.70%, AJG belongs to the top of the industry, outperforming 86.99% of the companies in the same industry.
- AJG had an Average Return On Invested Capital over the past 3 years of 7.35%. This is significantly below the industry average of 15.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 6.9% | ||
| ROIC | 6.7% |
ROA(3y)2.35%
ROA(5y)2.69%
ROE(3y)9.48%
ROE(5y)10.47%
ROIC(3y)7.35%
ROIC(5y)7.18%
1.3 Margins
- AJG has a Profit Margin of 12.29%. This is in the better half of the industry: AJG outperforms 66.44% of its industry peers.
- In the last couple of years the Profit Margin of AJG has grown nicely.
- AJG has a better Operating Margin (24.80%) than 84.93% of its industry peers.
- AJG's Operating Margin has improved in the last couple of years.
- AJG has a Gross Margin of 46.39%. This is amongst the best in the industry. AJG outperforms 94.52% of its industry peers.
- 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 3Y13.45%
OM growth 5Y16.28%
PM growth 3Y4.65%
PM growth 5Y6.37%
GM growth 3Y6.97%
GM growth 5Y6.66%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AJG is destroying value.
- The number of shares outstanding for AJG has been increased compared to 1 year ago.
- AJG has more shares outstanding than it did 5 years ago.
- AJG has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.14, we must say that AJG is in the distress zone and has some risk of bankruptcy.
- AJG has a better Altman-Z score (1.14) than 81.51% 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.
- Looking at the Debt to FCF ratio, with a value of 7.42, AJG is doing worse than 68.49% of the companies in the same industry.
- AJG has a Debt/Equity ratio of 0.53. This is a neutral value indicating AJG is somewhat dependend on debt financing.
- AJG has a worse Debt to Equity ratio (0.53) than 75.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.84
WACC8.02%
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 better Current ratio (1.06) than 79.45% 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 Quick ratio of 1.06. This is in the better half of the industry: AJG outperforms 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.98% over the past year.
- Measured over the past years, AJG shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.61% on average per year.
- The Revenue has grown by 15.61% in the past year. This is quite good.
- Measured over the past years, AJG shows a quite strong growth in Revenue. The Revenue has been growing by 9.94% on average per year.
EPS 1Y (TTM)5.98%
EPS 3Y22.62%
EPS 5Y22.61%
EPS Q2Q%2.65%
Revenue 1Y (TTM)15.61%
Revenue growth 3Y12.07%
Revenue growth 5Y9.94%
Sales Q2Q%21.48%
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 16.30% yearly.
- Based on estimates for the next years, AJG will show a quite strong growth in Revenue. The Revenue will grow by 13.92% on average per year.
EPS Next Y7.15%
EPS Next 2Y15.43%
EPS Next 3Y14.68%
EPS Next 5Y16.3%
Revenue Next Year21.41%
Revenue Next 2Y22.12%
Revenue Next 3Y17.89%
Revenue Next 5Y13.92%
3.3 Evolution
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- AJG is valuated rather expensively with a Price/Earnings ratio of 24.74.
- Based on the Price/Earnings ratio, AJG is valued a bit more expensive than the industry average as 73.29% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, AJG is valued at the same level.
- AJG is valuated rather expensively with a Price/Forward Earnings ratio of 19.14.
- Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than 69.86% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. AJG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
- 67.12% of the companies in the same industry are cheaper than AJG, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than the industry average as 72.60% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.57 | ||
| EV/EBITDA | 18.37 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of AJG may justify a higher PE ratio.
- AJG's earnings are expected to grow with 14.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.46
PEG (5Y)1.09
EPS Next 2Y15.43%
EPS Next 3Y14.68%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.98%, AJG is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.42, AJG has a dividend in line with its industry peers.
- With a Dividend Yield of 0.98, AJG pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
- The dividend of AJG has a limited annual growth rate of 5.46%.
- AJG has been paying a dividend for at least 10 years, so it has a reliable track record.
- AJG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
- AJG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.43%
EPS Next 2Y15.43%
EPS Next 3Y14.68%
258.52
+2.37 (+0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners91.72%
Inst Owner Change-0.11%
Ins Owners0.59%
Ins Owner Change0.31%
Market Cap66.39B
Revenue(TTM)13.03B
Net Income(TTM)1.60B
Analysts75.56
Price Target307.26 (18.85%)
Short Float %1.53%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend2.25
Dividend Growth(5Y)5.46%
DP39.43%
Div Incr Years14
Div Non Decr Years34
Ex-DateN/A
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)-2.63%
Min Revenue beat(2)-4.45%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-1.86%
Revenue beat(12)2
Avg Revenue beat(12)-0.85%
Revenue beat(16)5
Avg Revenue beat(16)-0.06%
PT rev (1m)-2.95%
PT rev (3m)-11.8%
EPS NQ rev (1m)-2.05%
EPS NQ rev (3m)-6.51%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-3.42%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 19.14 | ||
| P/S | 5.1 | ||
| P/FCF | 37.57 | ||
| P/OCF | 34.65 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.37 |
EPS(TTM)10.45
EY4.04%
EPS(NY)13.51
Fwd EY5.23%
FCF(TTM)6.88
FCFY2.66%
OCF(TTM)7.46
OCFY2.89%
SpS50.74
BVpS90.36
TBVpS-38.01
PEG (NY)3.46
PEG (5Y)1.09
Graham Number145.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 6.9% | ||
| ROCE | 8.44% | ||
| ROIC | 6.7% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 61.85% | ||
| OM | 24.8% | ||
| PM (TTM) | 12.29% | ||
| GM | 46.39% | ||
| FCFM | 13.56% |
ROA(3y)2.35%
ROA(5y)2.69%
ROE(3y)9.48%
ROE(5y)10.47%
ROIC(3y)7.35%
ROIC(5y)7.18%
ROICexc(3y)9.13%
ROICexc(5y)8.37%
ROICexgc(3y)48.09%
ROICexgc(5y)40.27%
ROCE(3y)9.3%
ROCE(5y)9.1%
ROICexgc growth 3Y31.7%
ROICexgc growth 5Y18.43%
ROICexc growth 3Y18.63%
ROICexc growth 5Y11.64%
OM growth 3Y13.45%
OM growth 5Y16.28%
PM growth 3Y4.65%
PM growth 5Y6.37%
GM growth 3Y6.97%
GM growth 5Y6.66%
F-Score4
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 | 1.14 |
F-Score4
WACC8.02%
ROIC/WACC0.84
Cap/Depr(3y)25.04%
Cap/Depr(5y)23.1%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.65%
Profit Quality(3y)176.95%
Profit Quality(5y)182.63%
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y22.62%
EPS 5Y22.61%
EPS Q2Q%2.65%
EPS Next Y7.15%
EPS Next 2Y15.43%
EPS Next 3Y14.68%
EPS Next 5Y16.3%
Revenue 1Y (TTM)15.61%
Revenue growth 3Y12.07%
Revenue growth 5Y9.94%
Sales Q2Q%21.48%
Revenue Next Year21.41%
Revenue Next 2Y22.12%
Revenue Next 3Y17.89%
Revenue Next 5Y13.92%
EBIT growth 1Y46.9%
EBIT growth 3Y27.14%
EBIT growth 5Y27.83%
EBIT Next Year65.44%
EBIT Next 3Y31.73%
EBIT Next 5Y20.35%
FCF growth 1Y31.06%
FCF growth 3Y15.71%
FCF growth 5Y20.01%
OCF growth 1Y24.56%
OCF growth 3Y14.87%
OCF growth 5Y18.21%
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 3 / 10.
Can you provide the dividend sustainability for AJG stock?
The dividend rating of ARTHUR J GALLAGHER & CO (AJG) is 5 / 10 and the dividend payout ratio is 39.43%.