Why ARTHUR J GALLAGHER & CO (NYSE:AJG) qualifies as a quality stock.

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.

What matters for quality investors.

• 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 48.78%, 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.
• The Debt/Free Cash Flow Ratio of ARTHUR J GALLAGHER & CO stands at 3.45, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 23.83%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, AJG scores 5 out of 10 in our fundamental rating. AJG was compared to 141 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. While showing a medium growth rate, AJG is valued expensive at the moment.

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

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

Keep in mind

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.