ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AJG • US3635761097

205.31 USD
-7.27 (-3.42%)
At close: Feb 11, 2026
205.3 USD
-0.01 (0%)
After Hours: 2/11/2026, 7:06:10 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AJG. AJG was compared to 149 industry peers in the Insurance industry. While AJG has a great profitability rating, 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.
  • 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.
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

  • AJG's Return On Assets of 2.03% is in line compared to the rest of the industry. AJG outperforms 53.69% of its industry peers.
  • With a Return On Equity value of 6.90%, AJG is not doing good in the industry: 69.13% of the companies in the same industry are doing better.
  • Looking at the Return On Invested Capital, with a value of 6.66%, AJG belongs to the top of the industry, outperforming 85.91% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AJG is significantly below the industry average of 14.88%.
  • 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 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

  • With a decent Profit Margin value of 12.29%, AJG is doing good in the industry, outperforming 66.44% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AJG has declined.
  • Looking at the Operating Margin, with a value of 24.80%, AJG belongs to the top 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.
  • AJG's Gross Margin of 46.39% is amongst the best of 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

  • 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.
  • 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 1.02. This is a bad value and indicates that AJG is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.02, AJG belongs to the top of the industry, outperforming 81.21% of the companies in the same industry.
  • 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.
  • 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 RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.42
Altman-Z 1.02
ROIC/WACC0.86
WACC7.77%
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.
  • 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.
  • Looking at the Quick ratio, with a value of 1.06, AJG belongs to the top of the industry, outperforming 80.54% of the companies in the same industry.
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

  • The Earnings Per Share has been growing slightly by 5.52% over the past year.
  • 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.
  • AJG shows a strong growth in Revenue. In the last year, 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%33.71%

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 19.16% on average per year.
  • AJG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.15% yearly.
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

  • 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.
  • 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

  • Based on the Price/Earnings ratio of 19.19, the valuation of AJG can be described as rather expensive.
  • Based on the Price/Earnings ratio, AJG is valued a bit more expensive than the industry average as 69.13% of the companies are valued more cheaply.
  • The average S&P500 Price/Earnings ratio is at 28.23. AJG is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 15.29 indicates a correct valuation of AJG.
  • 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 63.76% of the companies listed in the same industry.
  • AJG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.01.
Industry RankSector Rank
PE 19.19
Fwd PE 15.29
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as AJG.
  • Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than 71.14% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.83
EV/EBITDA 15.71
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

  • The 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.
  • AJG's earnings are expected to grow with 16.60% in the coming years. This may justify a more expensive valuation.
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

  • With a Yearly Dividend Yield of 1.15%, AJG has a reasonable but not impressive dividend return.
  • The stock price of AJG dropped by -20.58% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • AJG's Dividend Yield is comparable with the industry average which is at 2.28.
  • AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.79.
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 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
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

  • 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%
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 (2/11/2026, 7:06:10 PM)

After market: 205.3 -0.01 (0%)

205.31

-7.27 (-3.42%)

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 Cap52.73B
Revenue(TTM)13.94B
Net Income(TTM)1.60B
Analysts75.56
Price Target294.58 (43.48%)
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 19.19
Fwd PE 15.29
P/S 4.05
P/FCF 29.83
P/OCF 27.51
P/B 2.27
P/tB N/A
EV/EBITDA 15.71
EPS(TTM)10.7
EY5.21%
EPS(NY)13.42
Fwd EY6.54%
FCF(TTM)6.88
FCFY3.35%
OCF(TTM)7.46
OCFY3.63%
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 1.02
F-Score6
WACC7.77%
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%.