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

NYSE:AJG • US3635761097

Current stock price

207.93 USD
+3.72 (+1.82%)
At close:
207.93 USD
0 (0%)
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

  • AJG had positive earnings in the past year.
  • AJG had a positive operating cash flow in the past year.
  • Each year in the past 5 years AJG has been profitable.
  • 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

  • Looking at the Return On Assets, with a value of 2.11%, AJG is in line with its industry, outperforming 53.02% of the companies in the same industry.
  • AJG's Return On Equity of 6.41% is on the low side compared to the rest of the industry. AJG is outperformed by 65.10% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.98%, AJG belongs to the top of the industry, outperforming 85.23% of the companies in the same industry.
  • AJG had an Average Return On Invested Capital over the past 3 years of 6.61%. This is significantly below the industry average of 15.25%.
  • The last Return On Invested Capital (6.98%) for AJG is above the 3 year average (6.61%), which is a sign of increasing profitability.
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

  • AJG's Profit Margin of 10.72% is fine compared to the rest of the industry. AJG outperforms 68.46% of its industry peers.
  • AJG's Profit Margin has declined in the last couple of years.
  • AJG's Operating Margin of 24.22% is amongst the best of the industry. AJG outperforms 81.21% of its industry peers.
  • In the last couple of years the Operating Margin of AJG has grown nicely.
  • AJG has a better Gross Margin (46.02%) than 93.29% 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AJG is destroying value.
  • AJG has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, AJG has more shares outstanding
  • 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

  • Based on the Altman-Z score of 1.17, we must say that AJG is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of AJG (1.17) is better than 83.89% 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 has a worse Debt to FCF ratio (7.27) than 67.79% of its industry peers.
  • 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 7.27
Altman-Z 1.17
ROIC/WACC0.89
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

  • A Current Ratio of 1.06 indicates that AJG should not have too much problems paying 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.
  • 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.
  • AJG has a better Quick ratio (1.06) than 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. AJG Growth Analysis

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.
  • 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

  • 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.
  • The Revenue is expected to grow by 12.15% on average over the next years. This is quite good.
EPS Next Y25.15%
EPS Next 2Y18.49%
EPS Next 3Y16.49%
EPS Next 5Y19.16%
Revenue Next Year22.07%
Revenue Next 2Y15.68%
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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3

4. AJG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.43, the valuation of AJG can be described as rather expensive.
  • 73.83% of the companies in the same industry are cheaper than AJG, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of AJG to the average of the S&P500 Index (25.70), we can say AJG is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 15.53, AJG is valued correctly.
  • 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 65.77% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. AJG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 19.43
Fwd PE 15.53
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 60.40% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, AJG is valued a bit more expensive than 71.81% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.95
EV/EBITDA 14.19
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.
  • AJG has a very decent profitability rating, which 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)0.77
PEG (5Y)1.1
EPS Next 2Y18.49%
EPS Next 3Y16.49%

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

6

5. AJG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.37%, AJG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.85, AJG has a dividend in line with its industry peers.
  • AJG's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.37%

5.2 History

  • The dividend of AJG is nicely growing with an annual growth rate of 7.66%!
  • 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)7.66%
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 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 2Y18.49%
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 (3/13/2026, 8:09:26 PM)

After market: 207.93 0 (0%)

207.93

+3.72 (+1.82%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners93.47%
Inst Owner Change1.18%
Ins Owners0.59%
Ins Owner Change1.11%
Market Cap53.46B
Revenue(TTM)13.94B
Net Income(TTM)1.49B
Analysts73.33
Price Target293.34 (41.08%)
Short Float %1.94%
Short Ratio2.12
Dividend
Industry RankSector Rank
Dividend Yield 1.37%
Yearly Dividend2.63
Dividend Growth(5Y)7.66%
DP44.65%
Div Incr Years14
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)-0.42%
PT rev (3m)-7.34%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-2.18%
Valuation
Industry RankSector Rank
PE 19.43
Fwd PE 15.53
P/S 3.83
P/FCF 29.95
P/OCF 27.7
P/B 2.29
P/tB N/A
EV/EBITDA 14.19
EPS(TTM)10.7
EY5.15%
EPS(NY)13.39
Fwd EY6.44%
FCF(TTM)6.94
FCFY3.34%
OCF(TTM)7.51
OCFY3.61%
SpS54.23
BVpS90.71
TBVpS-38.72
PEG (NY)0.77
PEG (5Y)1.1
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 1.17
F-Score6
WACC7.85%
ROIC/WACC0.89
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 Year22.07%
Revenue Next 2Y15.68%
Revenue Next 3Y13.38%
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.


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 44.65%.