ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AJG - US3635761097 - Common Stock
254.88 USD
-3.64 (-1.41%)
255.41 USD
+0.53 (+0.21%)
Overall AJG gets a fundamental rating of 5 out of 10. We evaluated AJG against 149 industry peers in the Insurance industry. While AJG has a great profitability rating, there are quite some concerns on its financial health. AJG is valued quite expensive, but it does show an excellent growth.
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.
- In the past 5 years AJG has always been profitable.
- Each year in the past 5 years AJG had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.03%, AJG is in line with its industry, outperforming 53.02% of the companies in the same industry.
- With a Return On Equity value of 6.90%, AJG is not doing good in the industry: 69.80% of the companies in the same industry are doing better.
- AJG has a better Return On Invested Capital (6.70%) than 86.58% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AJG is significantly below the industry average of 14.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 6.9% | ||
| ROIC | 6.7% |
ROA(3y)2.35%
ROA(5y)2.69%
ROE(3y)9.48%
ROE(5y)10.47%
ROIC(3y)7.35%
ROIC(5y)7.18%
1.3 Margins
- AJG has a Profit Margin of 12.29%. This is in the better half of the industry: AJG outperforms 66.44% of its industry peers.
- In the last couple of years the Profit Margin of AJG has grown nicely.
- AJG has a Operating Margin of 24.80%. This is amongst the best in the industry. AJG outperforms 83.22% of its industry peers.
- AJG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 46.39%, AJG belongs to the top of the industry, outperforming 93.29% of the companies in the same industry.
- In the last couple of years the Gross Margin of AJG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.8% | ||
| PM (TTM) | 12.29% | ||
| GM | 46.39% |
OM growth 3Y13.45%
OM growth 5Y16.28%
PM growth 3Y4.65%
PM growth 5Y6.37%
GM growth 3Y6.97%
GM growth 5Y6.66%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AJG is destroying value.
- Compared to 1 year ago, AJG has more shares outstanding
- AJG has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AJG is higher compared to a year ago.
2.2 Solvency
- AJG has an Altman-Z score of 1.14. This is a bad value and indicates that AJG is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AJG (1.14) is better than 79.87% of its industry peers.
- AJG has a debt to FCF ratio of 7.42. This is a slightly negative value and a sign of low solvency as AJG would need 7.42 years to pay back of 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 67.79% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that 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 73.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.84
WACC8.01%
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 better Current ratio (1.06) than 79.19% of its industry peers.
- A Quick Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.06, AJG is doing good in the industry, outperforming 79.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- AJG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.98%.
- The Earnings Per Share has been growing by 22.61% on average over the past years. This is a very strong growth
- The Revenue has grown by 15.61% in the past year. This is quite good.
- The Revenue has been growing by 9.94% on average over the past years. This is quite good.
EPS 1Y (TTM)5.98%
EPS 3Y22.62%
EPS 5Y22.61%
EPS Q2Q%2.65%
Revenue 1Y (TTM)15.61%
Revenue growth 3Y12.07%
Revenue growth 5Y9.94%
Sales Q2Q%21.48%
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 16.30% on average per year.
- AJG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.90% yearly.
EPS Next Y7.15%
EPS Next 2Y15.43%
EPS Next 3Y14.68%
EPS Next 5Y16.3%
Revenue Next Year21.22%
Revenue Next 2Y21.91%
Revenue Next 3Y17.75%
Revenue Next 5Y13.9%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.39, 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 73.15% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, AJG is valued at the same level.
- Based on the Price/Forward Earnings ratio of 18.87, the valuation of AJG can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than 69.80% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, AJG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 18.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AJG is valued a bit more expensive than 67.11% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than the industry average as 71.81% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.04 | ||
| EV/EBITDA | 18.29 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AJG does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of AJG may justify a higher PE ratio.
- A more expensive valuation may be justified as AJG's earnings are expected to grow with 14.68% in the coming years.
PEG (NY)3.41
PEG (5Y)1.08
EPS Next 2Y15.43%
EPS Next 3Y14.68%
5. Dividend
5.1 Amount
- AJG has a Yearly Dividend Yield of 1.02%.
- Compared to an average industry Dividend Yield of 2.53, AJG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, AJG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
5.3 Sustainability
- AJG pays out 39.43% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AJG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.43%
EPS Next 2Y15.43%
EPS Next 3Y14.68%
254.88
-3.64 (-1.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners91.72%
Inst Owner Change0.01%
Ins Owners0.59%
Ins Owner Change0.31%
Market Cap65.46B
Revenue(TTM)13.03B
Net Income(TTM)1.60B
Analysts75.56
Price Target305.69 (19.93%)
Short Float %1.94%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend2.25
Dividend Growth(5Y)5.46%
DP39.43%
Div Incr Years14
Div Non Decr Years34
Ex-DateN/A
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)-3.44%
PT rev (3m)-12.25%
EPS NQ rev (1m)-4.45%
EPS NQ rev (3m)-8.7%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-3.42%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 18.87 | ||
| P/S | 5.02 | ||
| P/FCF | 37.04 | ||
| P/OCF | 34.16 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.29 |
EPS(TTM)10.45
EY4.1%
EPS(NY)13.51
Fwd EY5.3%
FCF(TTM)6.88
FCFY2.7%
OCF(TTM)7.46
OCFY2.93%
SpS50.74
BVpS90.36
TBVpS-38.01
PEG (NY)3.41
PEG (5Y)1.08
Graham Number145.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 6.9% | ||
| ROCE | 8.44% | ||
| ROIC | 6.7% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 61.85% | ||
| OM | 24.8% | ||
| PM (TTM) | 12.29% | ||
| GM | 46.39% | ||
| FCFM | 13.56% |
ROA(3y)2.35%
ROA(5y)2.69%
ROE(3y)9.48%
ROE(5y)10.47%
ROIC(3y)7.35%
ROIC(5y)7.18%
ROICexc(3y)9.13%
ROICexc(5y)8.37%
ROICexgc(3y)48.09%
ROICexgc(5y)40.27%
ROCE(3y)9.3%
ROCE(5y)9.1%
ROICexgc growth 3Y31.7%
ROICexgc growth 5Y18.43%
ROICexc growth 3Y18.63%
ROICexc growth 5Y11.64%
OM growth 3Y13.45%
OM growth 5Y16.28%
PM growth 3Y4.65%
PM growth 5Y6.37%
GM growth 3Y6.97%
GM growth 5Y6.66%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector 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 | 1.14 |
F-Score4
WACC8.01%
ROIC/WACC0.84
Cap/Depr(3y)25.04%
Cap/Depr(5y)23.1%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.65%
Profit Quality(3y)176.95%
Profit Quality(5y)182.63%
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y22.62%
EPS 5Y22.61%
EPS Q2Q%2.65%
EPS Next Y7.15%
EPS Next 2Y15.43%
EPS Next 3Y14.68%
EPS Next 5Y16.3%
Revenue 1Y (TTM)15.61%
Revenue growth 3Y12.07%
Revenue growth 5Y9.94%
Sales Q2Q%21.48%
Revenue Next Year21.22%
Revenue Next 2Y21.91%
Revenue Next 3Y17.75%
Revenue Next 5Y13.9%
EBIT growth 1Y46.9%
EBIT growth 3Y27.14%
EBIT growth 5Y27.83%
EBIT Next Year65.44%
EBIT Next 3Y31.73%
EBIT Next 5Y20.35%
FCF growth 1Y31.06%
FCF growth 3Y15.71%
FCF growth 5Y20.01%
OCF growth 1Y24.56%
OCF growth 3Y14.87%
OCF growth 5Y18.21%
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 2 / 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 3 / 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%.