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.
Key Considerations for Quality Investors.
Over the past 5 years, ARTHUR J GALLAGHER & CO has experienced impressive revenue growth, with 7.75% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
ARTHUR J GALLAGHER & CO exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 45.84% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
ARTHUR J GALLAGHER & CO demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.77, 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.
The Profit Quality (5-year) of ARTHUR J GALLAGHER & CO stands at 179.0%, 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 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.
With EBIT 5-year growth outpacing its Revenue 5-year growth, ARTHUR J GALLAGHER & CO showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
Fundamental analysis of NYSE:AJG
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
Overall AJG gets a fundamental rating of 6 out of 10. We evaluated AJG against 139 industry peers in the Insurance industry. While AJG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AJG shows excellent growth, but is valued quite expensive already.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.