ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis
NYSE:AJG • US3635761097
208.45 USD
+3.66 (+1.79%)
At close: Feb 13, 2026
208.45 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
AJG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 149 industry peers in the Insurance industry. AJG has an excellent profitability rating, but there are some minor concerns on its financial health. AJG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AJG was profitable.
- AJG had a positive operating cash flow in the past year.
- In the past 5 years AJG has always been profitable.
- Of the past 5 years AJG 4 years had a positive operating cash flow.
1.2 Ratios
- AJG has a Return On Assets of 2.03%. This is comparable to the rest of the industry: AJG outperforms 53.69% of its industry peers.
- The Return On Equity of AJG (6.90%) is worse than 69.13% of its industry peers.
- The Return On Invested Capital of AJG (6.66%) is better than 85.91% 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 14.88%.
- The 3 year average ROIC (6.08%) for AJG is below the current ROIC(6.66%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
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 declined.
- With an excellent Operating Margin value of 24.80%, AJG belongs to the best of the industry, outperforming 83.89% of the companies in the same industry.
- AJG's Operating Margin has improved in the last couple of years.
- The Gross Margin of AJG (46.39%) is better than 93.96% of its industry peers.
- 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 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
2.2 Solvency
- AJG has an Altman-Z score of 1.00. This is a bad value and indicates that AJG is not financially healthy and even has some risk of bankruptcy.
- AJG has a better Altman-Z score (1.00) than 81.88% 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 has a Debt to FCF ratio of 7.42. This is in the lower half of the industry: AJG underperforms 67.11% 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 73.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 1 |
ROIC/WACC0.87
WACC7.68%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
- With an excellent Current ratio value of 1.06, AJG belongs to the best of the industry, outperforming 80.54% of the companies in the same industry.
- 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.
- The Quick ratio of AJG (1.06) is better than 80.54% of its industry peers.
| 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 5.52%.
- 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
- 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.
- 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 Year21.92%
Revenue Next 2Y15.64%
Revenue Next 3Y13.38%
Revenue Next 5Y12.15%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.48, which indicates a rather expensive current valuation of AJG.
- 69.13% 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 27.97. AJG is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.53, AJG is valued correctly.
- Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than the industry average as 63.09% of the companies are valued more cheaply.
- AJG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AJG is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than 69.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.29 | ||
| EV/EBITDA | 15.24 |
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.
- A more expensive valuation may be justified as AJG's earnings are expected to grow with 16.60% in the coming years.
PEG (NY)0.77
PEG (5Y)1.1
EPS Next 2Y18.6%
EPS Next 3Y16.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.37%, AJG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.59, AJG has a dividend in line with its industry peers.
- AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y18.6%
EPS Next 3Y16.6%
208.45
+3.66 (+1.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners91.72%
Inst Owner Change-2.01%
Ins Owners0.59%
Ins Owner Change-1.75%
Market Cap53.57B
Revenue(TTM)13.94B
Net Income(TTM)1.60B
Analysts73.33
Price Target294.58 (41.32%)
Short Float %2.1%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.25
Dividend Growth(5Y)5.46%
DP39.43%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-06 2026-03-06 (0.7)
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)-4.13%
PT rev (3m)-15.31%
EPS NQ rev (1m)-3.07%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 15.53 | ||
| P/S | 4.11 | ||
| P/FCF | 30.29 | ||
| P/OCF | 27.94 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.24 |
EPS(TTM)10.7
EY5.13%
EPS(NY)13.42
Fwd EY6.44%
FCF(TTM)6.88
FCFY3.3%
OCF(TTM)7.46
OCFY3.58%
SpS50.74
BVpS90.36
TBVpS-38.01
PEG (NY)0.77
PEG (5Y)1.1
Graham Number147.49
Profitability
| Industry Rank | Sector 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 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 |
F-Score6
WACC7.68%
ROIC/WACC0.87
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 Year21.92%
Revenue Next 2Y15.64%
Revenue Next 3Y13.38%
Revenue Next 5Y12.15%
EBIT growth 1Y46.9%
EBIT growth 3Y9.36%
EBIT growth 5Y16.59%
EBIT Next Year66.72%
EBIT Next 3Y24.77%
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 4 / 10 to ARTHUR J GALLAGHER & CO (AJG). This can be considered as Fairly Valued.
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%.