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

NYSE:AJG • US3635761097

Current stock price

221.11 USD
-3.35 (-1.49%)
At close:
223.93 USD
+2.82 (+1.28%)
After Hours:

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.
  • AJG had a positive operating cash flow in the past year.
  • Each year in the past 5 years AJG has been profitable.
  • AJG had a positive operating cash flow in each 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 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.11%, AJG is in line with its industry, outperforming 46.94% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 6.41%, AJG is doing worse than 69.39% of the companies in the same industry.
  • AJG's Return On Invested Capital of 6.98% is amongst the best of the industry. AJG outperforms 80.95% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AJG is below the industry average of 9.51%.
  • 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 63.27% 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 24.22%, AJG belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
  • 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 92.52% of its industry peers.
  • AJG's Gross Margin has improved in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AJG is destroying value.
  • The number of shares outstanding for AJG has been increased compared to 1 year ago.
  • Compared to 5 years ago, AJG has more shares outstanding
  • 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 1.23. This is a bad value and indicates that AJG is not financially healthy and even has some risk of bankruptcy.
  • With an excellent Altman-Z score value of 1.23, AJG belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
  • 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.
  • With a Debt to FCF ratio value of 7.27, AJG is not doing good in the industry: 72.11% 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.
  • AJG's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. AJG is outperformed by 75.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 7.27
Altman-Z 1.23
ROIC/WACC0.88
WACC7.92%
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.
  • Looking at the Current ratio, with a value of 1.06, AJG belongs to the top of the industry, outperforming 80.95% 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.
  • The Quick ratio of AJG (1.06) is better than 80.95% 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. AJG Growth Analysis

3.1 Past

  • AJG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.52%.
  • The Earnings Per Share has been growing by 17.73% on average over the past years. This is quite good.
  • The Revenue has grown by 20.66% in the past year. This is a very strong growth!
  • 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

  • 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 Y25.05%
EPS Next 2Y18.63%
EPS Next 3Y16.68%
EPS Next 5Y19.16%
Revenue Next Year21.25%
Revenue Next 2Y15.03%
Revenue Next 3Y13.06%
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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3

4. AJG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.66, which indicates a rather expensive current valuation of AJG.
  • Based on the Price/Earnings ratio, AJG is valued a bit more expensive than the industry average as 78.91% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Earnings ratio of 27.79, AJG is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 16.53 indicates a correct valuation of AJG.
  • Based on the Price/Forward Earnings ratio, AJG is valued a bit more expensive than 68.03% of the companies in the same industry.
  • AJG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.88.
Industry RankSector Rank
PE 20.66
Fwd PE 16.53
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 a bit more expensive when compared to the industry. AJG is more expensive than 61.90% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than 73.47% of the companies in the same industry.
Industry RankSector Rank
P/FCF 31.82
EV/EBITDA 15.34
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 16.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.17
EPS Next 2Y18.63%
EPS Next 3Y16.68%

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

6

5. AJG Dividend Analysis

5.1 Amount

  • AJG has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
  • AJG's Dividend Yield is comparable with the industry average which is at 2.37.
  • AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.25%

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

  • AJG pays out 44.65% of its income as dividend. 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 2Y18.63%
EPS Next 3Y16.68%
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 (4/22/2026, 8:07:30 PM)

After market: 223.93 +2.82 (+1.28%)

221.11

-3.35 (-1.49%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29
Earnings (Next)04-30
Inst Owners93.34%
Inst Owner Change-0.05%
Ins Owners0.63%
Ins Owner Change6.08%
Market Cap56.80B
Revenue(TTM)13.94B
Net Income(TTM)1.49B
Analysts76.43
Price Target279.41 (26.37%)
Short Float %2.29%
Short Ratio2.25
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
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)-2.04%
Revenue beat(12)1
Avg Revenue beat(12)-1.43%
Revenue beat(16)4
Avg Revenue beat(16)-0.79%
PT rev (1m)-4.75%
PT rev (3m)-8.6%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-1.16%
Valuation
Industry RankSector Rank
PE 20.66
Fwd PE 16.53
P/S 4.07
P/FCF 31.82
P/OCF 29.43
P/B 2.44
P/tB N/A
EV/EBITDA 15.34
EPS(TTM)10.7
EY4.84%
EPS(NY)13.38
Fwd EY6.05%
FCF(TTM)6.95
FCFY3.14%
OCF(TTM)7.51
OCFY3.4%
SpS54.27
BVpS90.78
TBVpS-38.76
PEG (NY)0.83
PEG (5Y)1.17
Graham Number147.837 (-33.14%)
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 1.23
F-Score6
WACC7.92%
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 Y25.05%
EPS Next 2Y18.63%
EPS Next 3Y16.68%
EPS Next 5Y19.16%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y17.7%
Revenue growth 5Y14.76%
Sales Q2Q%33.71%
Revenue Next Year21.25%
Revenue Next 2Y15.03%
Revenue Next 3Y13.06%
Revenue Next 5Y12.15%
EBIT growth 1Y22.73%
EBIT growth 3Y19.57%
EBIT growth 5Y23%
EBIT Next Year63.15%
EBIT Next 3Y26.26%
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 25.05% in the next year.