ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis

NYSE:AJG • US3635761097

204.79 USD
-0.52 (-0.25%)
At close: Feb 12, 2026
204.8 USD
0.01 (0%)
After Hours: 2/12/2026, 7:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, AJG scores 5 out of 10 in our fundamental rating. AJG was compared to 149 industry peers in the Insurance industry. AJG scores excellent on profitability, but there are some minor concerns on its financial health. AJG has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year AJG was profitable.
  • AJG had a positive operating cash flow in the past year.
  • AJG had positive earnings in each of the past 5 years.
  • AJG had a positive operating cash flow in 4 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 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • With a Return On Assets value of 2.03%, AJG perfoms like the industry average, outperforming 53.69% of the companies in the same industry.
  • AJG has a worse Return On Equity (6.90%) than 69.13% of its industry peers.
  • AJG's Return On Invested Capital of 6.66% is amongst the best of the industry. AJG outperforms 85.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years 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 RankSector 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%
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 (12.29%) is better than 66.44% of its industry peers.
  • AJG's Profit Margin has declined in the last couple of years.
  • The Operating Margin of AJG (24.80%) is better than 83.89% of its industry peers.
  • In the last couple of years the Operating Margin of AJG has grown nicely.
  • AJG has a Gross Margin of 46.39%. This is amongst the best in the industry. AJG outperforms 93.96% of its industry peers.
  • In the last couple of years the Gross Margin of AJG has grown nicely.
Industry RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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

  • 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 Altman-Z score of 1.00. This is amongst the best in the industry. AJG outperforms 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.
  • With a Debt to FCF ratio value of 7.42, AJG is not doing good in the industry: 67.11% 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.
  • The Debt to Equity ratio of AJG (0.53) is worse than 73.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.42
Altman-Z 1
ROIC/WACC0.86
WACC7.78%
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's Current ratio of 1.06 is amongst the best of the industry. AJG outperforms 80.54% of its industry peers.
  • A Quick Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
  • AJG's Quick ratio of 1.06 is amongst the best of the industry. AJG outperforms 80.54% 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. Growth

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.
  • Looking at the last year, AJG shows a very strong growth in Revenue. The Revenue has grown by 20.66%.
  • 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)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.
  • 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 Y25.46%
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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.14, which indicates a rather expensive current valuation of AJG.
  • Based on the Price/Earnings ratio, AJG is valued a bit more expensive than 69.13% of the companies in the same industry.
  • AJG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
  • The Price/Forward Earnings ratio is 15.26, which indicates a correct valuation of AJG.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 27.69. AJG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 19.14
Fwd PE 15.26
AJG Price Earnings VS Forward Price EarningsAJG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • AJG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than the industry average as 71.14% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 29.76
EV/EBITDA 15.27
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.
  • 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 16.60% in the coming years.
PEG (NY)0.75
PEG (5Y)1.08
EPS Next 2Y18.6%
EPS Next 3Y16.6%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • AJG has a Yearly Dividend Yield of 1.15%.
  • In the last 3 months the price of AJG has falen by -20.78%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 2.18, AJG has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.80, AJG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.15%

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
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

  • 39.43% of the earnings are spent on dividend by AJG. This is a low number and 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%
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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ARTHUR J GALLAGHER & CO

NYSE:AJG (2/12/2026, 7:00:00 PM)

After market: 204.8 0.01 (0%)

204.79

-0.52 (-0.25%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners91.72%
Inst Owner Change-2.01%
Ins Owners0.59%
Ins Owner Change-1.75%
Market Cap52.59B
Revenue(TTM)13.94B
Net Income(TTM)1.60B
Analysts75.56
Price Target294.58 (43.84%)
Short Float %2.1%
Short Ratio3.01
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend2.25
Dividend Growth(5Y)5.46%
DP39.43%
Div Incr Years14
Div Non Decr Years34
Ex-Date03-06
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 RankSector Rank
PE 19.14
Fwd PE 15.26
P/S 4.04
P/FCF 29.76
P/OCF 27.44
P/B 2.27
P/tB N/A
EV/EBITDA 15.27
EPS(TTM)10.7
EY5.22%
EPS(NY)13.42
Fwd EY6.55%
FCF(TTM)6.88
FCFY3.36%
OCF(TTM)7.46
OCFY3.64%
SpS50.74
BVpS90.36
TBVpS-38.01
PEG (NY)0.75
PEG (5Y)1.08
Graham Number147.49
Profitability
Industry RankSector 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 RankSector 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
WACC7.78%
ROIC/WACC0.86
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%.