ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AJG • US3635761097
251.175 USD
+1.81 (+0.72%)
Last: Feb 2, 2026, 11:03 AM
Overall AJG gets a fundamental rating of 5 out of 10. We evaluated AJG against 147 industry peers in the Insurance industry. While AJG has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, AJG is valued expensive at the moment.
1. Profitability
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.
- AJG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.03%, AJG perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
- The Return On Equity of AJG (6.90%) is worse than 70.07% of its industry peers.
- AJG's Return On Invested Capital of 6.66% is amongst the best of the industry. AJG outperforms 86.39% of its industry peers.
- AJG had an Average Return On Invested Capital over the past 3 years of 6.08%. This is significantly below the industry average of 14.94%.
- 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 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
- Looking at the Profit Margin, with a value of 12.29%, AJG is in the better half of the industry, outperforming 65.99% of the companies in the same industry.
- AJG's Profit Margin has declined in the last couple of years.
- The Operating Margin of AJG (24.80%) is better than 82.99% of its industry peers.
- In the last couple of years the Operating Margin of AJG has grown nicely.
- Looking at the Gross Margin, with a value of 46.39%, AJG belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
- AJG's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 1 year ago, AJG has more shares outstanding
- Compared to 5 years ago, AJG has more shares outstanding
- AJG has a better debt/assets ratio than last year.
2.2 Solvency
- AJG has an Altman-Z score of 1.12. 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 (1.12) is better than 80.95% 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.
- With a Debt to FCF ratio value of 7.42, AJG is not doing good in the industry: 68.03% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.53 indicates that AJG is somewhat dependend on debt financing.
- AJG has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: AJG underperforms 74.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.83
WACC8.01%
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 Current ratio of 1.06. This is amongst the best in the industry. AJG outperforms 80.27% of its industry peers.
- A Quick Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
- The Quick ratio of AJG (1.06) is better than 80.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.52% over the past year.
- AJG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.73% yearly.
- Looking at the last year, AJG shows a very strong growth in Revenue. The Revenue has grown by 20.66%.
- Measured over the past years, AJG shows a quite strong growth in Revenue. The Revenue has been growing by 14.76% on average per year.
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%34.49%
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 Y25.3%
EPS Next 2Y18.65%
EPS Next 3Y19.22%
EPS Next 5Y19.16%
Revenue Next Year22.34%
Revenue Next 2Y15.94%
Revenue Next 3Y13.22%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.47 indicates a rather expensive valuation of AJG.
- Based on the Price/Earnings ratio, AJG is valued a bit more expensive than 73.47% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AJG to the average of the S&P500 Index (28.32), we can say AJG is valued inline with the index average.
- A Price/Forward Earnings ratio of 18.73 indicates a rather expensive valuation of AJG.
- Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than 70.07% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. AJG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 18.73 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are cheaper than AJG, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than the industry average as 72.79% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.5 | ||
| EV/EBITDA | 17.96 |
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.
- 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 19.22% in the coming years.
PEG (NY)0.93
PEG (5Y)1.32
EPS Next 2Y18.65%
EPS Next 3Y19.22%
5. Dividend
5.1 Amount
- AJG has a Yearly Dividend Yield of 1.12%.
- Compared to an average industry Dividend Yield of 2.19, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
- The dividend of AJG has a limited annual growth rate of 5.46%.
- 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)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.
- AJG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.43%
EPS Next 2Y18.65%
EPS Next 3Y19.22%
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 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%.