Is NYSE:AJG suited for quality investing?

In this article we will dive into ARTHUR J GALLAGHER & CO (NYSE:AJG) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ARTHUR J GALLAGHER & CO showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:AJG highlighted

• Over the past 5 years, ARTHUR J GALLAGHER & CO has experienced impressive revenue growth, with 6.47% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 47.61%, ARTHUR J GALLAGHER & CO demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 4.41, ARTHUR J GALLAGHER & CO showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• ARTHUR J GALLAGHER & CO demonstrates consistent Profit Quality over the past 5 years, with a strong 160.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• ARTHUR J GALLAGHER & CO has consistently achieved strong EBIT growth over the past 5 years, with a 31.72% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

Fundamental analysis of NYSE:AJG

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall AJG gets a fundamental rating of 6 out of 10. We evaluated AJG 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.

Check the latest full fundamental report of AJG for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.