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

NYSE:AJG • US3635761097

Current stock price

219.52 USD
+0.25 (+0.11%)
Last:

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.
  • AJG had positive earnings in each of the past 5 years.
  • 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

  • The Return On Assets of AJG (2.11%) is comparable to the rest of the industry.
  • AJG has a Return On Equity of 6.41%. This is in the lower half of the industry: AJG underperforms 66.89% of its industry peers.
  • AJG's Return On Invested Capital of 6.98% is amongst the best of the industry. AJG outperforms 82.43% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AJG is below the industry average of 9.46%.
  • The 3 year average ROIC (6.61%) for AJG is below the current ROIC(6.98%), indicating increased profibility in the last year.
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

  • With a decent Profit Margin value of 10.72%, AJG is doing good in the industry, outperforming 66.22% of the companies in the same industry.
  • AJG's Profit Margin has declined in the last couple of years.
  • AJG has a better Operating Margin (24.22%) than 83.78% 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 92.57% of its industry peers.
  • In the last couple of years the Gross Margin of AJG has grown nicely.
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

  • AJG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • AJG has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for AJG has been increased compared to 5 years ago.
  • AJG has a better debt/assets ratio than last year.
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 1.22. 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 (1.22) is better than 81.76% of its industry peers.
  • The Debt to FCF ratio of AJG is 7.27, which is on the high side as it means it would take AJG, 7.27 years of fcf income to pay off all of its debts.
  • AJG's Debt to FCF ratio of 7.27 is on the low side compared to the rest of the industry. AJG is outperformed by 71.62% 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.
  • AJG has a worse Debt to Equity ratio (0.53) than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.27
Altman-Z 1.22
ROIC/WACC0.88
WACC7.96%
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

  • A Current Ratio of 1.06 indicates that AJG should not have too much problems paying its short term obligations.
  • AJG has a Current ratio of 1.06. This is amongst the best in the industry. AJG outperforms 81.08% 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.
  • Looking at the Quick ratio, with a value of 1.06, AJG belongs to the top of the industry, outperforming 81.08% 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. AJG Growth Analysis

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%33.71%

3.2 Future

  • The Earnings Per Share is expected to grow by 19.16% 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 Y25.15%
EPS Next 2Y18.49%
EPS Next 3Y16.49%
EPS Next 5Y19.16%
Revenue Next Year21.41%
Revenue Next 2Y15.15%
Revenue Next 3Y13.22%
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.
  • 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 5 10 15 20

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3

4. AJG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.52, which indicates a rather expensive current valuation of AJG.
  • AJG's Price/Earnings ratio is a bit more expensive when compared to the industry. AJG is more expensive than 77.70% 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 26.21.
  • AJG is valuated correctly with a Price/Forward Earnings ratio of 16.39.
  • 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 66.89% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.13. AJG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.52
Fwd PE 16.39
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

  • Based on the Enterprise Value to EBITDA ratio, AJG is valued a bit more expensive than 61.49% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than the industry average as 73.65% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 31.62
EV/EBITDA 15.05
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.
  • AJG's earnings are expected to grow with 16.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)1.16
EPS Next 2Y18.49%
EPS Next 3Y16.49%

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6

5. AJG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.35%, AJG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.55, AJG has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.89, AJG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.35%

5.2 History

  • The dividend of AJG is nicely growing with an annual growth rate of 7.66%!
  • 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)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.
  • AJG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.65%
EPS Next 2Y18.49%
EPS Next 3Y16.49%
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 (4/7/2026, 9:51:57 AM)

219.52

+0.25 (+0.11%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners93.47%
Inst Owner Change0%
Ins Owners0.59%
Ins Owner Change6.08%
Market Cap56.44B
Revenue(TTM)13.94B
Net Income(TTM)1.49B
Analysts76.43
Price Target272.62 (24.19%)
Short Float %1.97%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
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)-1.98%
Revenue beat(12)1
Avg Revenue beat(12)-1.39%
Revenue beat(16)4
Avg Revenue beat(16)-0.76%
PT rev (1m)-7.06%
PT rev (3m)-11.27%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-1.28%
Valuation
Industry RankSector Rank
PE 20.52
Fwd PE 16.39
P/S 4.05
P/FCF 31.62
P/OCF 29.24
P/B 2.42
P/tB N/A
EV/EBITDA 15.05
EPS(TTM)10.7
EY4.87%
EPS(NY)13.39
Fwd EY6.1%
FCF(TTM)6.94
FCFY3.16%
OCF(TTM)7.51
OCFY3.42%
SpS54.23
BVpS90.71
TBVpS-38.72
PEG (NY)0.82
PEG (5Y)1.16
Graham Number147.78
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 1.22
F-Score6
WACC7.96%
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)5.52%
EPS 3Y12.43%
EPS 5Y17.73%
EPS Q2Q%11.74%
EPS Next Y25.15%
EPS Next 2Y18.49%
EPS Next 3Y16.49%
EPS Next 5Y19.16%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%33.71%
Revenue Next Year21.41%
Revenue Next 2Y15.15%
Revenue Next 3Y13.22%
Revenue Next 5Y12.15%
EBIT growth 1Y22.73%
EBIT growth 3Y19.57%
EBIT growth 5Y23%
EBIT Next Year64.68%
EBIT Next 3Y26.04%
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 5 / 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 25.15% in the next year.