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Why the quality investor may take a look at ARTHUR J GALLAGHER & CO (NYSE:AJG).

By Mill Chart

Last update: Mar 22, 2024

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 course 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.

Some of the quality metrics of NYSE:AJG highlighted

  • The 5-year revenue growth of ARTHUR J GALLAGHER & CO has been remarkable, with 7.75% 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 38.55%, 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 demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.33, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • ARTHUR J GALLAGHER & CO demonstrates consistent Profit Quality over the past 5 years, with a strong 179.0%. 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 23.83% 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 impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for 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.

Taking everything into account, AJG scores 5 out of 10 in our fundamental rating. AJG was compared to 140 industry peers in the Insurance industry. While AJG belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, AJG is valued expensive at the moment.

Our latest full fundamental report of AJG contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.

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