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.

Key Considerations for Quality Investors.

• 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.
• With a robust ROIC excluding cash and goodwill at 44.62%, ARTHUR J GALLAGHER & CO showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• ARTHUR J GALLAGHER & CO demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.55, 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.
• With a favorable Profit Quality (5-year) ratio of 179.0%, ARTHUR J GALLAGHER & CO showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• 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.

What is the full fundamental picture of NYSE:AJG telling us.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

AJG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. AJG scores excellent on profitability, but there are some minor concerns on its financial health. AJG is valued quite expensively, but it does show have an excellent growth rating.

For an up to date full fundamental analysis you can check the fundamental report of AJG

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

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.