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

NYSE:AJG • US3635761097

Current stock price

208.11 USD
+1.71 (+0.83%)
At close:
208.11 USD
0 (0%)
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

  • In the past year AJG was profitable.
  • In the past year AJG had a positive cash flow from operations.
  • Each year in the past 5 years AJG has been profitable.
  • Each year in the past 5 years AJG 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 1B 2B 3B

1.2 Ratios

  • With a Return On Assets value of 2.11%, AJG perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
  • AJG has a worse Return On Equity (6.41%) than 69.39% of its industry peers.
  • With an excellent Return On Invested Capital value of 6.98%, AJG belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AJG is below the industry average of 9.60%.
  • The last Return On Invested Capital (6.98%) for AJG is above the 3 year average (6.61%), which is a sign of increasing profitability.
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

  • The Profit Margin of AJG (10.72%) is better than 63.27% of its industry peers.
  • AJG's Profit Margin has declined in the last couple of years.
  • AJG has a better Operating Margin (24.22%) than 81.63% of its industry peers.
  • AJG's Operating Margin has improved in the last couple of years.
  • AJG has a Gross Margin of 46.02%. This is amongst the best in the industry. AJG outperforms 92.52% of its industry peers.
  • AJG's Gross Margin has improved in the last couple of years.
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

  • 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.
  • The number of shares outstanding for AJG has been increased compared to 5 years ago.
  • 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

  • Based on the Altman-Z score of 1.17, we must say that AJG is in the distress zone and has some risk of bankruptcy.
  • With an excellent Altman-Z score value of 1.17, AJG belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 7.27, AJG is doing worse than 72.11% of the companies in the same industry.
  • A Debt/Equity ratio of 0.53 indicates that AJG is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.53, AJG is not doing good in the industry: 75.51% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.27
Altman-Z 1.17
ROIC/WACC0.88
WACC7.94%
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 has a better Quick ratio (1.06) than 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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7

3. AJG Growth Analysis

3.1 Past

  • AJG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.43%, which is quite good.
  • 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.
  • The Revenue has grown by 20.66% in the past year. This is a very strong growth!
  • AJG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.76% yearly.
EPS 1Y (TTM)11.43%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%21.8%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%28.1%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.05% on average over the next years. This is quite good.
  • Based on estimates for the next years, AJG will show a quite strong growth in Revenue. The Revenue will grow by 12.15% on average per year.
EPS Next Y25.05%
EPS Next 2Y18.63%
EPS Next 3Y16.68%
EPS Next 5Y11.05%
Revenue Next Year21.25%
Revenue Next 2Y15.03%
Revenue Next 3Y13.06%
Revenue Next 5Y12.15%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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 2030 5 10 15

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3

4. AJG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.10 indicates a rather expensive valuation of AJG.
  • AJG's Price/Earnings ratio is a bit more expensive when compared to the industry. AJG is more expensive than 76.19% of the companies in the same industry.
  • AJG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • AJG is valuated correctly with a Price/Forward Earnings ratio of 13.82.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AJG indicates a slightly more expensive valuation: AJG is more expensive than 64.63% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. AJG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.1
Fwd PE 13.82
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AJG indicates a slightly more expensive valuation: AJG is more expensive than 62.59% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AJG indicates a slightly more expensive valuation: AJG is more expensive than 73.47% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 29.95
EV/EBITDA 14.31
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 16.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.02
EPS Next 2Y18.63%
EPS Next 3Y16.68%

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6

5. AJG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.36%, AJG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.38, AJG has a dividend in line with its industry peers.
  • AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.36%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.66%
Div Incr Years15
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.
  • The dividend of AJG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.65%
EPS Next 2Y18.63%
EPS Next 3Y16.68%
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 (5/1/2026, 8:09:11 PM)

After market: 208.11 0 (0%)

208.11

+1.71 (+0.83%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Industry Strength2.48
Industry Growth85.71
Earnings (Last)04-30
Earnings (Next)07-29
Inst Owners93.34%
Inst Owner Change-0.12%
Ins Owners0.63%
Ins Owner Change6.08%
Market Cap53.46B
Revenue(TTM)13.94B
Net Income(TTM)1.49B
Analysts76.43
Price Target279 (34.06%)
Short Float %2.53%
Short Ratio2.89
Dividend
Industry RankSector Rank
Dividend Yield 1.36%
Yearly Dividend2.63
Dividend Growth(5Y)7.66%
DP44.65%
Div Incr Years15
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)-2.04%
Revenue beat(12)1
Avg Revenue beat(12)-1.43%
Revenue beat(16)4
Avg Revenue beat(16)-0.79%
PT rev (1m)-4.75%
PT rev (3m)-8.6%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.89%
Valuation
Industry RankSector Rank
PE 18.1
Fwd PE 13.82
P/S 3.83
P/FCF 29.95
P/OCF 27.7
P/B 2.29
P/tB N/A
EV/EBITDA 14.31
EPS(TTM)11.5
EY5.53%
EPS(NY)15.06
Fwd EY7.24%
FCF(TTM)6.95
FCFY3.34%
OCF(TTM)7.51
OCFY3.61%
SpS54.27
BVpS90.78
TBVpS-38.76
PEG (NY)0.72
PEG (5Y)1.02
Graham Number153.264 (-26.35%)
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 1.17
F-Score6
WACC7.94%
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)11.43%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%21.8%
EPS Next Y25.05%
EPS Next 2Y18.63%
EPS Next 3Y16.68%
EPS Next 5Y11.05%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%28.1%
Revenue Next Year21.25%
Revenue Next 2Y15.03%
Revenue Next 3Y13.06%
Revenue Next 5Y12.15%
EBIT growth 1Y22.73%
EBIT growth 3Y19.57%
EBIT growth 5Y23%
EBIT Next Year63.15%
EBIT Next 3Y26.26%
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 6 / 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 25.05% in the next year.