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.
A Deep Dive into ARTHUR J GALLAGHER & CO's Quality Metrics.
ARTHUR J GALLAGHER & CO has shown strong performance in revenue growth over the past 5 years, with a 7.75% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
The ROIC excluding cash and goodwill of ARTHUR J GALLAGHER & CO stands at 44.62%, 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 3.55, 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.
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.
With a robust 5-year EBIT growth of 23.83%, ARTHUR J GALLAGHER & CO showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
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.
Zooming in on the fundamentals.
ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.
AJG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. AJG has an excellent profitability rating, but there are some minor concerns on its financial health. AJG is valued quite expensive, but it does show an excellent growth.
This article should in no way be interpreted as advice. 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.