(AJG) Arthur J Gallagher - Ratings and Ratios
Insurance Brokerage, Reinsurance, Claims Administration, Risk Consulting
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.29% |
| Yield on Cost 5y | 2.93% |
| Yield CAGR 5y | 7.46% |
| Payout Consistency | 95.6% |
| Payout Ratio | 27.4% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 20.2% |
| Value at Risk 5%th | 34.3% |
| Relative Tail Risk | 3.36% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.85 |
| Alpha | -25.50 |
| CAGR/Max DD | 0.28 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.582 |
| Beta | 0.321 |
| Beta Downside | 0.337 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.04% |
| Mean DD | 5.42% |
| Median DD | 3.64% |
Description: AJG Arthur J Gallagher September 26, 2025
Arthur J. Gallagher & Co. (NYSE:AJG) operates globally through two primary segments-Brokerage and Risk Management-offering a full suite of insurance and reinsurance brokerage, consulting, and third-party claims settlement services to commercial, industrial, public, religious, nonprofit, and underwriting clients.
In the Brokerage segment, Gallagher acts as both a retail and wholesale broker, placing hard-to-place and specialty risks, managing general agents/underwriters, and handling the full policy lifecycle (marketing, underwriting, premium collection, claims payment, and reinsurance negotiations). This segment also administers employer-sponsored benefit programs and provides risk-of-loss management services.
The Risk Management segment focuses on contract claim settlement, loss-control consulting, and property appraisal services, delivering end-to-end claims administration for a diverse client base via a network of correspondent brokers and consultants.
Key financial and market indicators (FY 2023): revenue of $8.2 billion, operating margin of ~13%, and a combined ratio of 94% in the core brokerage business-both metrics that signal pricing power and underwriting discipline. The company’s growth is partly driven by rising commercial construction activity and increasing demand for cyber-risk coverage, while a higher interest-rate environment supports investment income and improves the profitability of its insurance-linked securities.
Sector dynamics worth monitoring include the consolidation trend among insurance brokers, the regulatory pressure on reinsurance pricing, and the macro-economic sensitivity of commercial lines to GDP growth and corporate capital expenditures.
For a deeper, data-driven assessment of AJG’s valuation and risk profile, you may find the analytics on ValueRay useful as a next step in your research.
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income (1.60b TTM) > 0 and > 6% of Revenue (6% = 781.8m TTM) |
| FCFTA 0.02 (>2.0%) and ΔFCFTA -1.95pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 17.25% (prev 18.47%; Δ -1.22pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.02 (>3.0%) and CFO 1.92b > Net Income 1.60b (YES >=105%, WARN >=100%) |
| Net Debt (12.29b) to EBITDA (3.62b) ratio: 3.39 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.06 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (260.4m) change vs 12m ago 16.31% (target <= -2.0% for YES) |
| Gross Margin 56.33% (prev 41.89%; Δ 14.44pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 19.12% (prev 19.70%; Δ -0.58pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 4.56 (EBITDA TTM 3.62b / Interest Expense TTM 579.7m) >= 6 (WARN >= 3) |
Altman Z'' 0.79
| (A) 0.03 = (Total Current Assets 43.01b - Total Current Liabilities 40.76b) / Total Assets 79.07b |
| (B) 0.07 = Retained Earnings (Balance) 5.82b / Total Assets 79.07b |
| (C) 0.04 = EBIT TTM 2.65b / Avg Total Assets 68.16b |
| (D) 0.10 = Book Value of Equity 5.50b / Total Liabilities 55.83b |
| Total Rating: 0.79 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 62.87
| 1. Piotroski 4.0pt |
| 2. FCF Yield 2.32% |
| 3. FCF Margin 13.56% |
| 4. Debt/Equity 0.59 |
| 5. Debt/Ebitda 3.39 |
| 6. ROIC - WACC (= -0.17)% |
| 7. RoE 7.22% |
| 8. Rev. Trend 86.10% |
| 9. EPS Trend 47.32% |
What is the price of AJG shares?
Over the past week, the price has changed by +0.49%, over one month by -10.92%, over three months by -16.62% and over the past year by -20.51%.
Is AJG a buy, sell or hold?
- Strong Buy: 6
- Buy: 3
- Hold: 7
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the AJG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 312.1 | 25.6% |
| Analysts Target Price | 312.1 | 25.6% |
| ValueRay Target Price | 245.1 | -1.4% |
AJG Fundamental Data Overview November 26, 2025
P/E Trailing = 39.6502
P/E Forward = 18.622
P/S = 5.2772
P/B = 2.7822
P/EG = 0.8314
Beta = 0.686
Revenue TTM = 13.03b USD
EBIT TTM = 2.65b USD
EBITDA TTM = 3.62b USD
Long Term Debt = 12.10b USD (from longTermDebt, last quarter)
Short Term Debt = 1.01b USD (from shortTermDebt, last quarter)
Debt = 13.69b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 12.29b USD (from netDebt column, last quarter)
Enterprise Value = 76.03b USD (63.74b + Debt 13.69b - CCE 1.40b)
Interest Coverage Ratio = 4.56 (Ebit TTM 2.65b / Interest Expense TTM 579.7m)
FCF Yield = 2.32% (FCF TTM 1.77b / Enterprise Value 76.03b)
FCF Margin = 13.56% (FCF TTM 1.77b / Revenue TTM 13.03b)
Net Margin = 12.29% (Net Income TTM 1.60b / Revenue TTM 13.03b)
Gross Margin = 56.33% ((Revenue TTM 13.03b - Cost of Revenue TTM 5.69b) / Revenue TTM)
Gross Margin QoQ = 90.60% (prev 42.68%)
Tobins Q-Ratio = 0.96 (Enterprise Value 76.03b / Total Assets 79.07b)
Interest Expense / Debt = 1.17% (Interest Expense 160.8m / Debt 13.69b)
Taxrate = 21.13% (73.3m / 346.9m)
NOPAT = 2.09b (EBIT 2.65b * (1 - 21.13%))
Current Ratio = 1.06 (Total Current Assets 43.01b / Total Current Liabilities 40.76b)
Debt / Equity = 0.59 (Debt 13.69b / totalStockholderEquity, last quarter 23.21b)
Debt / EBITDA = 3.39 (Net Debt 12.29b / EBITDA 3.62b)
Debt / FCF = 6.95 (Net Debt 12.29b / FCF TTM 1.77b)
Total Stockholder Equity = 22.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.03% (Net Income 1.60b / Total Assets 79.07b)
RoE = 7.22% (Net Income TTM 1.60b / Total Stockholder Equity 22.18b)
RoCE = 7.72% (EBIT 2.65b / Capital Employed (Equity 22.18b + L.T.Debt 12.10b))
RoIC = 5.92% (NOPAT 2.09b / Invested Capital 35.24b)
WACC = 6.09% (E(63.74b)/V(77.43b) * Re(7.20%) + D(13.69b)/V(77.43b) * Rd(1.17%) * (1-Tc(0.21)))
Discount Rate = 7.20% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 9.72%
[DCF Debug] Terminal Value 79.02% ; FCFE base≈2.02b ; Y1≈2.12b ; Y5≈2.49b
Fair Price DCF = 170.2 (DCF Value 43.70b / Shares Outstanding 256.8m; 5y FCF grow 5.67% → 3.0% )
EPS Correlation: 47.32 | EPS CAGR: 25.84% | SUE: -1.89 | # QB: 0
Revenue Correlation: 86.10 | Revenue CAGR: 15.46% | SUE: -2.16 | # QB: 0
Additional Sources for AJG Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle