ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis

NYSE:AJG • US3635761097

228.2 USD
+2.98 (+1.32%)
At close: Feb 27, 2026
228.2 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, AJG scores 5 out of 10 in our fundamental rating. AJG was compared to 150 industry peers in the Insurance industry. While AJG has a great profitability rating, there are some minor concerns on its financial health. AJG is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • AJG had positive earnings in the past year.
  • In the past year AJG had a positive cash flow from operations.
  • Each year in the past 5 years AJG has been profitable.
  • Of the past 5 years AJG 4 years had a positive operating cash flow.
AJG Yearly Net Income VS EBIT VS OCF VS FCFAJG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • The Return On Assets of AJG (2.03%) is comparable to the rest of the industry.
  • AJG has a worse Return On Equity (6.90%) than 66.67% of its industry peers.
  • With an excellent Return On Invested Capital value of 6.66%, AJG belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for AJG is significantly below the industry average of 15.13%.
  • The last Return On Invested Capital (6.66%) for AJG is above the 3 year average (6.08%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.03%
ROE 6.9%
ROIC 6.66%
ROA(3y)2.09%
ROA(5y)2.38%
ROE(3y)7.55%
ROE(5y)9.1%
ROIC(3y)6.08%
ROIC(5y)6.68%
AJG Yearly ROA, ROE, ROICAJG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10

1.3 Margins

  • AJG has a Profit Margin of 12.29%. This is in the better half of the industry: AJG outperforms 66.00% of its industry peers.
  • AJG's Profit Margin has declined in the last couple of years.
  • AJG's Operating Margin of 24.80% is amongst the best of the industry. AJG outperforms 82.67% of its industry peers.
  • In the last couple of years the Operating Margin of AJG has grown nicely.
  • AJG has a better Gross Margin (46.39%) than 93.33% of its industry peers.
  • In the last couple of years the Gross Margin of AJG has grown nicely.
Industry RankSector Rank
OM 24.8%
PM (TTM) 12.29%
GM 46.39%
OM growth 3Y-7.08%
OM growth 5Y1.59%
PM growth 3Y-6.31%
PM growth 5Y-1.73%
GM growth 3Y-1.32%
GM growth 5Y2.99%
AJG Yearly Profit, Operating, Gross MarginsAJG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AJG is destroying value.
  • The number of shares outstanding for AJG has been increased compared to 1 year ago.
  • Compared to 5 years ago, AJG has more shares outstanding
  • Compared to 1 year ago, AJG has an improved debt to assets ratio.
AJG Yearly Shares OutstandingAJG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
AJG Yearly Total Debt VS Total AssetsAJG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • AJG has an Altman-Z score of 1.07. This is a bad value and indicates that AJG is not financially healthy and even has some risk of bankruptcy.
  • AJG's Altman-Z score of 1.07 is amongst the best of the industry. AJG outperforms 82.00% of its industry peers.
  • The Debt to FCF ratio of AJG is 7.42, which is on the high side as it means it would take AJG, 7.42 years of fcf income to pay off all of its debts.
  • AJG's Debt to FCF ratio of 7.42 is on the low side compared to the rest of the industry. AJG is outperformed by 66.67% of its industry peers.
  • AJG has a Debt/Equity ratio of 0.53. This is a neutral value indicating AJG is somewhat dependend on debt financing.
  • AJG's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. AJG is outperformed by 74.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.42
Altman-Z 1.07
ROIC/WACC0.86
WACC7.7%
AJG Yearly LT Debt VS Equity VS FCFAJG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
  • AJG has a Current ratio of 1.06. This is amongst the best in the industry. AJG outperforms 81.33% of its industry peers.
  • A Quick Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
  • AJG's Quick ratio of 1.06 is amongst the best of the industry. AJG outperforms 81.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 1.06
AJG Yearly Current Assets VS Current LiabilitesAJG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • AJG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.52%.
  • The Earnings Per Share has been growing by 17.73% on average over the past years. This is quite good.
  • The Revenue has grown by 20.66% in the past year. This is a very strong growth!
  • The Revenue has been growing by 14.76% on average over the past years. This is quite good.
EPS 1Y (TTM)5.52%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%11.74%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%33.71%

3.2 Future

  • Based on estimates for the next years, AJG will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.16% on average per year.
  • The Revenue is expected to grow by 12.15% on average over the next years. This is quite good.
EPS Next Y25.46%
EPS Next 2Y18.6%
EPS Next 3Y16.6%
EPS Next 5Y19.16%
Revenue Next Year22.01%
Revenue Next 2Y15.66%
Revenue Next 3Y13.38%
Revenue Next 5Y12.15%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
AJG Yearly Revenue VS EstimatesAJG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
AJG Yearly EPS VS EstimatesAJG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.33, the valuation of AJG can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of AJG indicates a slightly more expensive valuation: AJG is more expensive than 71.33% of the companies listed in the same industry.
  • AJG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.10.
  • The Price/Forward Earnings ratio is 17.00, which indicates a correct valuation of AJG.
  • Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than the industry average as 64.67% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, AJG is valued a bit cheaper.
Industry RankSector Rank
PE 21.33
Fwd PE 17
AJG Price Earnings VS Forward Price EarningsAJG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • AJG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than 70.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.18
EV/EBITDA 16.67
AJG Per share dataAJG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of AJG may justify a higher PE ratio.
  • AJG's earnings are expected to grow with 16.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.2
EPS Next 2Y18.6%
EPS Next 3Y16.6%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • AJG has a Yearly Dividend Yield of 1.24%.
  • Compared to an average industry Dividend Yield of 2.53, AJG has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.83, AJG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.24%

5.2 History

  • The dividend of AJG has a limited annual growth rate of 5.46%.
  • AJG has paid a dividend for at least 10 years, which is a reliable track record.
  • AJG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.46%
Div Incr Years14
Div Non Decr Years34
AJG Yearly Dividends per shareAJG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 39.43% of the earnings are spent on dividend by AJG. This is a low number and sustainable payout ratio.
  • AJG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.43%
EPS Next 2Y18.6%
EPS Next 3Y16.6%
AJG Yearly Income VS Free CF VS DividendAJG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
AJG Dividend Payout.AJG Dividend Payout, showing the Payout Ratio.AJG Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ARTHUR J GALLAGHER & CO

NYSE:AJG (2/27/2026, 8:04:00 PM)

After market: 228.2 0 (0%)

228.2

+2.98 (+1.32%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners91.72%
Inst Owner Change1.18%
Ins Owners0.59%
Ins Owner Change-1.48%
Market Cap58.64B
Revenue(TTM)13.94B
Net Income(TTM)1.60B
Analysts73.33
Price Target293.34 (28.55%)
Short Float %2.25%
Short Ratio2.65
Dividend
Industry RankSector Rank
Dividend Yield 1.24%
Yearly Dividend2.25
Dividend Growth(5Y)5.46%
DP39.43%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-06
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.16%
Min EPS beat(2)-9.74%
Max EPS beat(2)-2.57%
EPS beat(4)2
Avg EPS beat(4)-1.8%
Min EPS beat(4)-9.74%
Max EPS beat(4)3.69%
EPS beat(8)3
Avg EPS beat(8)-1.04%
EPS beat(12)6
Avg EPS beat(12)-1.62%
EPS beat(16)10
Avg EPS beat(16)-0.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.77%
Min Revenue beat(2)-4.64%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.9%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)2
Avg Revenue beat(12)-0.9%
Revenue beat(16)5
Avg Revenue beat(16)-0.09%
PT rev (1m)-4.04%
PT rev (3m)-9.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.3%
Valuation
Industry RankSector Rank
PE 21.33
Fwd PE 17
P/S 4.5
P/FCF 33.18
P/OCF 30.6
P/B 2.53
P/tB N/A
EV/EBITDA 16.67
EPS(TTM)10.7
EY4.69%
EPS(NY)13.42
Fwd EY5.88%
FCF(TTM)6.88
FCFY3.01%
OCF(TTM)7.46
OCFY3.27%
SpS50.7
BVpS90.3
TBVpS-37.99
PEG (NY)0.84
PEG (5Y)1.2
Graham Number147.45
Profitability
Industry RankSector Rank
ROA 2.03%
ROE 6.9%
ROCE 8.44%
ROIC 6.66%
ROICexc 6.91%
ROICexgc 61.39%
OM 24.8%
PM (TTM) 12.29%
GM 46.39%
FCFM 13.56%
ROA(3y)2.09%
ROA(5y)2.38%
ROE(3y)7.55%
ROE(5y)9.1%
ROIC(3y)6.08%
ROIC(5y)6.68%
ROICexc(3y)7.79%
ROICexc(5y)7.81%
ROICexgc(3y)51.82%
ROICexgc(5y)44.98%
ROCE(3y)7.73%
ROCE(5y)8.51%
ROICexgc growth 3Y9%
ROICexgc growth 5Y13.31%
ROICexc growth 3Y-16.39%
ROICexc growth 5Y-7.32%
OM growth 3Y-7.08%
OM growth 5Y1.59%
PM growth 3Y-6.31%
PM growth 5Y-1.73%
GM growth 3Y-1.32%
GM growth 5Y2.99%
F-Score6
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.42
Debt/EBITDA 2.93
Cap/Depr 15.31%
Cap/Sales 1.14%
Interest Coverage 5.99
Cash Conversion 45.57%
Profit Quality 110.37%
Current Ratio 1.06
Quick Ratio 1.06
Altman-Z 1.07
F-Score6
WACC7.7%
ROIC/WACC0.86
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.52%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%11.74%
EPS Next Y25.46%
EPS Next 2Y18.6%
EPS Next 3Y16.6%
EPS Next 5Y19.16%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%33.71%
Revenue Next Year22.01%
Revenue Next 2Y15.66%
Revenue Next 3Y13.38%
Revenue Next 5Y12.15%
EBIT growth 1Y46.9%
EBIT growth 3Y9.36%
EBIT growth 5Y16.59%
EBIT Next Year64.68%
EBIT Next 3Y26.04%
EBIT Next 5Y20.2%
FCF growth 1Y-26.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.47%
OCF growth 3YN/A
OCF growth 5YN/A

ARTHUR J GALLAGHER & CO / AJG FAQ

Can you provide the ChartMill fundamental rating for ARTHUR J GALLAGHER & CO?

ChartMill assigns a fundamental rating of 5 / 10 to AJG.


What is the valuation status of ARTHUR J GALLAGHER & CO (AJG) stock?

ChartMill assigns a valuation rating of 3 / 10 to ARTHUR J GALLAGHER & CO (AJG). This can be considered as Overvalued.


How profitable is ARTHUR J GALLAGHER & CO (AJG) stock?

ARTHUR J GALLAGHER & CO (AJG) has a profitability rating of 7 / 10.


How financially healthy is ARTHUR J GALLAGHER & CO?

The financial health rating of ARTHUR J GALLAGHER & CO (AJG) is 4 / 10.


Can you provide the dividend sustainability for AJG stock?

The dividend rating of ARTHUR J GALLAGHER & CO (AJG) is 6 / 10 and the dividend payout ratio is 39.43%.