ARTHUR J GALLAGHER & CO (AJG) Stock Fundamental Analysis

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

212.58 USD
-5.21 (-2.39%)
At close: Feb 10, 2026
212.58 USD
0 (0%)
After Hours: 2/10/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall AJG gets a fundamental rating of 5 out of 10. We evaluated AJG against 149 industry peers in the Insurance industry. While AJG has a great profitability rating, there are some minor concerns on its financial health. AJG is not valued too expensively and it also shows a decent growth rate.


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

  • The Return On Assets of AJG (2.03%) is comparable to the rest of the industry.
  • AJG's Return On Equity of 6.90% is on the low side compared to the rest of the industry. AJG is outperformed by 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 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

  • AJG's Profit Margin of 12.29% is fine compared to the rest of the industry. AJG outperforms 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.
  • AJG's Operating Margin has improved in the last couple of years.
  • AJG has a better Gross Margin (46.39%) than 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

  • 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.
  • Compared to 1 year ago, AJG has an improved debt to assets ratio.
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.
  • AJG has a Altman-Z score of 1.02. This is amongst the best in the industry. AJG outperforms 81.21% of its industry peers.
  • AJG has a debt to FCF ratio of 7.42. This is a slightly negative value and a sign of low solvency as AJG would need 7.42 years to pay back of all of its debts.
  • AJG's Debt to FCF ratio of 7.42 is on the low side compared to the rest of the industry. AJG is outperformed by 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.
  • AJG has a worse Debt to Equity ratio (0.53) than 73.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.42
Altman-Z 1.02
ROIC/WACC0.85
WACC7.85%
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 has a Current ratio of 1.06. This is amongst the best in 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.
  • With an excellent Quick ratio value of 1.06, AJG belongs to the best 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

  • 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.
  • 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

  • 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 Y25.46%
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

  • AJG is valuated rather expensively with a Price/Earnings ratio of 19.87.
  • Based on the Price/Earnings ratio, AJG is valued a bit more expensive than 69.13% of the companies in the same industry.
  • AJG is valuated rather cheaply when we compare the Price/Earnings ratio to 28.03, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 15.84 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 63.76% of the companies are valued more cheaply.
  • AJG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.97, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.87
Fwd PE 15.84
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.
  • 71.14% of the companies in the same industry are cheaper than AJG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 30.89
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

  • 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.
  • AJG's earnings are expected to grow with 16.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)1.12
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%.
  • AJG's Dividend Yield is comparable with the industry average which is at 2.24.
  • AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
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 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
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.
  • AJG's earnings are growing more than its dividend. This makes the dividend growth 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 (2/10/2026, 8:04:00 PM)

After market: 212.58 0 (0%)

212.58

-5.21 (-2.39%)

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 Cap54.59B
Revenue(TTM)13.94B
Net Income(TTM)1.60B
Analysts75.56
Price Target294.58 (38.57%)
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 19.87
Fwd PE 15.84
P/S 4.19
P/FCF 30.89
P/OCF 28.49
P/B 2.35
P/tB N/A
EV/EBITDA 15.71
EPS(TTM)10.7
EY5.03%
EPS(NY)13.42
Fwd EY6.31%
FCF(TTM)6.88
FCFY3.24%
OCF(TTM)7.46
OCFY3.51%
SpS50.74
BVpS90.36
TBVpS-38.01
PEG (NY)0.78
PEG (5Y)1.12
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
WACC7.85%
ROIC/WACC0.85
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 3 / 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%.