ARTHUR J GALLAGHER & CO (AJG) Fundamental Analysis & Valuation

NYSE:AJG • US3635761097

Current stock price

216.58 USD
+0.63 (+0.29%)
At close:
220.56 USD
+3.98 (+1.84%)
After Hours:

This AJG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. AJG Profitability Analysis

1.1 Basic Checks

  • AJG had positive earnings in the past year.
  • AJG had a positive operating cash flow in the past year.
  • In the past 5 years AJG has always been profitable.
  • AJG had a positive operating cash flow in each of the past 5 years.
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 1B 2B 3B

1.2 Ratios

  • With a Return On Assets value of 2.11%, AJG perfoms like the industry average, outperforming 49.66% of the companies in the same industry.
  • AJG's Return On Equity of 6.41% is on the low side compared to the rest of the industry. AJG is outperformed by 67.35% of its industry peers.
  • AJG has a better Return On Invested Capital (6.98%) than 82.31% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for AJG is below the industry average of 9.36%.
  • The 3 year average ROIC (6.61%) for AJG is below the current ROIC(6.98%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.11%
ROE 6.41%
ROIC 6.98%
ROA(3y)2.09%
ROA(5y)2.38%
ROE(3y)7.55%
ROE(5y)9.1%
ROIC(3y)6.61%
ROIC(5y)6.99%
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's Profit Margin of 10.72% is fine compared to the rest of the industry. AJG outperforms 65.99% of its industry peers.
  • In the last couple of years the Profit Margin of AJG has declined.
  • Looking at the Operating Margin, with a value of 24.22%, AJG belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
  • AJG's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 46.02%, AJG belongs to the best of the industry, outperforming 92.52% of the companies in the same industry.
  • In the last couple of years the Gross Margin of AJG has grown nicely.
Industry RankSector Rank
OM 24.22%
PM (TTM) 10.72%
GM 46.02%
OM growth 3Y1.59%
OM growth 5Y7.18%
PM growth 3Y-6.31%
PM growth 5Y-1.73%
GM growth 3Y1.27%
GM growth 5Y4.61%
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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4

2. AJG Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AJG is destroying value.
  • Compared to 1 year ago, AJG has more shares outstanding
  • Compared to 5 years ago, AJG has more shares outstanding
  • The debt/assets ratio for AJG has been reduced compared to a year ago.
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

  • Based on the Altman-Z score of 1.20, we must say that AJG is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of AJG (1.20) is better than 82.31% of its industry peers.
  • AJG has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as AJG would need 7.27 years to pay back of all of its debts.
  • AJG has a worse Debt to FCF ratio (7.27) than 72.11% 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.
  • The Debt to Equity ratio of AJG (0.53) is worse than 75.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.27
Altman-Z 1.2
ROIC/WACC0.88
WACC7.95%
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

  • AJG has a Current Ratio of 1.06. This is a normal value and indicates that AJG is financially healthy and should not expect problems in meeting its short term obligations.
  • AJG has a better Current ratio (1.06) than 80.95% of its industry peers.
  • AJG has a Quick Ratio of 1.06. This is a normal value and indicates that AJG is financially healthy and should not expect problems in meeting its short term obligations.
  • AJG's Quick ratio of 1.06 is amongst the best of the industry. AJG outperforms 80.95% 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. AJG Growth Analysis

3.1 Past

  • AJG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.52%.
  • Measured over the past years, AJG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.73% on average per year.
  • AJG shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.66%.
  • 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

  • AJG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.16% yearly.
  • AJG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.15% yearly.
EPS Next Y25.15%
EPS Next 2Y18.49%
EPS Next 3Y16.49%
EPS Next 5Y19.16%
Revenue Next Year21.79%
Revenue Next 2Y15.35%
Revenue Next 3Y13.47%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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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3

4. AJG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.24 indicates a rather expensive valuation of AJG.
  • 78.23% of the companies in the same industry are cheaper than AJG, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.35. AJG is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 16.17 indicates a correct valuation of AJG.
  • Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than 68.71% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.61. AJG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.24
Fwd PE 16.17
AJG Price Earnings VS Forward Price EarningsAJG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AJG is valued a bit more expensive than 65.31% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than 74.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 31.19
EV/EBITDA 14.87
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

  • AJG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • AJG has a very decent profitability rating, which may justify a higher PE ratio.
  • AJG's earnings are expected to grow with 16.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.14
EPS Next 2Y18.49%
EPS Next 3Y16.49%

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6

5. AJG Dividend Analysis

5.1 Amount

  • AJG has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
  • AJG's Dividend Yield is comparable with the industry average which is at 2.50.
  • AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.33%

5.2 History

  • On average, the dividend of AJG grows each year by 7.66%, which is quite nice.
  • AJG has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AJG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.66%
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

  • 44.65% of the earnings are spent on dividend by AJG. This is a bit on the high side, but may be sustainable.
  • AJG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.65%
EPS Next 2Y18.49%
EPS Next 3Y16.49%
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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AJG Fundamentals: All Metrics, Ratios and Statistics

ARTHUR J GALLAGHER & CO

NYSE:AJG (3/31/2026, 8:19:06 PM)

After market: 220.56 +3.98 (+1.84%)

216.58

+0.63 (+0.29%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners93.47%
Inst Owner Change1.18%
Ins Owners0.59%
Ins Owner Change5.9%
Market Cap55.68B
Revenue(TTM)13.94B
Net Income(TTM)1.49B
Analysts73.33
Price Target272.62 (25.87%)
Short Float %1.97%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield 1.33%
Yearly Dividend2.63
Dividend Growth(5Y)7.66%
DP44.65%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-06
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.72%
Min EPS beat(2)-9.74%
Max EPS beat(2)0.31%
EPS beat(4)2
Avg EPS beat(4)-2.64%
Min EPS beat(4)-9.74%
Max EPS beat(4)1.43%
EPS beat(8)4
Avg EPS beat(8)-0.89%
EPS beat(12)7
Avg EPS beat(12)-0.43%
EPS beat(16)10
Avg EPS beat(16)-0.93%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-4.64%
Max Revenue beat(2)-2.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.9%
Revenue beat(8)0
Avg Revenue beat(8)-1.98%
Revenue beat(12)1
Avg Revenue beat(12)-1.39%
Revenue beat(16)4
Avg Revenue beat(16)-0.76%
PT rev (1m)-7.06%
PT rev (3m)-11.27%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.98%
Valuation
Industry RankSector Rank
PE 20.24
Fwd PE 16.17
P/S 3.99
P/FCF 31.19
P/OCF 28.85
P/B 2.39
P/tB N/A
EV/EBITDA 14.87
EPS(TTM)10.7
EY4.94%
EPS(NY)13.39
Fwd EY6.18%
FCF(TTM)6.94
FCFY3.21%
OCF(TTM)7.51
OCFY3.47%
SpS54.23
BVpS90.71
TBVpS-38.72
PEG (NY)0.8
PEG (5Y)1.14
Graham Number147.78
Profitability
Industry RankSector Rank
ROA 2.11%
ROE 6.41%
ROCE 8.85%
ROIC 6.98%
ROICexc 7.25%
ROICexgc 72.46%
OM 24.22%
PM (TTM) 10.72%
GM 46.02%
FCFM 12.8%
ROA(3y)2.09%
ROA(5y)2.38%
ROE(3y)7.55%
ROE(5y)9.1%
ROIC(3y)6.61%
ROIC(5y)6.99%
ROICexc(3y)8.34%
ROICexc(5y)8.14%
ROICexgc(3y)57.33%
ROICexgc(5y)48.29%
ROCE(3y)8.4%
ROCE(5y)8.91%
ROICexgc growth 3Y19.17%
ROICexgc growth 5Y19.54%
ROICexc growth 3Y-8.59%
ROICexc growth 5Y-2.23%
OM growth 3Y1.59%
OM growth 5Y7.18%
PM growth 3Y-6.31%
PM growth 5Y-1.73%
GM growth 3Y1.27%
GM growth 5Y4.61%
F-Score6
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.27
Debt/EBITDA 2.74
Cap/Depr 12.92%
Cap/Sales 1.04%
Interest Coverage 5.87
Cash Conversion 42.9%
Profit Quality 119.48%
Current Ratio 1.06
Quick Ratio 1.06
Altman-Z 1.2
F-Score6
WACC7.95%
ROIC/WACC0.88
Cap/Depr(3y)19.19%
Cap/Depr(5y)22.15%
Cap/Sales(3y)1.4%
Cap/Sales(5y)1.58%
Profit Quality(3y)158.65%
Profit Quality(5y)164.81%
High Growth Momentum
Growth
EPS 1Y (TTM)5.52%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%11.74%
EPS Next Y25.15%
EPS Next 2Y18.49%
EPS Next 3Y16.49%
EPS Next 5Y19.16%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%33.71%
Revenue Next Year21.79%
Revenue Next 2Y15.35%
Revenue Next 3Y13.47%
Revenue Next 5Y12.15%
EBIT growth 1Y22.73%
EBIT growth 3Y19.57%
EBIT growth 5Y23%
EBIT Next Year64.68%
EBIT Next 3Y26.04%
EBIT Next 5Y20.2%
FCF growth 1Y-26.87%
FCF growth 3Y-2.78%
FCF growth 5Y0.89%
OCF growth 1Y-25.28%
OCF growth 3Y-3.16%
OCF growth 5Y1.32%

ARTHUR J GALLAGHER & CO / AJG Fundamental Analysis 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.


Can you provide the profitability details for ARTHUR J GALLAGHER & CO?

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


What is the financial health of ARTHUR J GALLAGHER & CO (AJG) stock?

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


What is the expected EPS growth for ARTHUR J GALLAGHER & CO (AJG) stock?

The Earnings per Share (EPS) of ARTHUR J GALLAGHER & CO (AJG) is expected to grow by 25.15% in the next year.