News Image

Exploring ARTHUR J GALLAGHER & CO (NYSE:AJG)s quality characteristics.

By Mill Chart

Last update: Aug 25, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ARTHUR J GALLAGHER & CO (NYSE:AJG) is suited for quality investing. Investors should of couse do their own research, but we spotted ARTHUR J GALLAGHER & CO showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:AJG may be interesting 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.
  • The ROIC excluding cash and goodwill of ARTHUR J GALLAGHER & CO stands at 47.61%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • ARTHUR J GALLAGHER & CO maintains a healthy Debt/Free Cash Flow Ratio of 4.41, 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.
  • The Profit Quality (5-year) of ARTHUR J GALLAGHER & CO stands at 160.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • 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 has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of NYSE:AJG?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

AJG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 142 industry peers in the Insurance industry. AJG has an excellent profitability rating, but 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 quality stocks can be found 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.

Back