(AJG) Arthur J Gallagher - Ratings and Ratios
Insurance, Reinsurance, Brokerage, Claims, Consulting
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.89% |
| Yield on Cost 5y | 2.32% |
| Yield CAGR 5y | 7.87% |
| Payout Consistency | 97.8% |
| Payout Ratio | 27.4% |
| Risk via 5d forecast | |
|---|---|
| Volatility | 20.4% |
| Value at Risk 5%th | 34.4% |
| Relative Tail Risk | 2.69% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.52 |
| Alpha | -20.45 |
| CAGR/Max DD | 0.33 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.566 |
| Beta | 0.310 |
| Beta Downside | 0.345 |
| Drawdowns 3y | |
|---|---|
| Max DD | 31.34% |
| Mean DD | 6.42% |
| Median DD | 3.76% |
Description: AJG Arthur J Gallagher December 03, 2025
Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance and reinsurance brokerage firm that also provides consulting, claims settlement, and administration services through its subsidiaries. Founded in 1927 and headquartered in Rolling Meadows, Illinois, the company serves a broad client base that includes commercial, industrial, public, religious, nonprofit, and underwriting entities.
The business is organized into two primary segments. The **Brokerage** segment delivers retail and wholesale brokerage services, assists non-affiliated brokers with hard-to-place risks, and operates as a managing general agent/underwriter for specialized coverages. Its activities span marketing, underwriting, policy issuance, premium collection, claim payment, and reinsurance negotiation, as well as employer-benefit program management. The **Risk Management** segment focuses on contract claim settlement, loss-control consulting, and property appraisal services, leveraging a network of correspondent brokers and consultants.
Key financial and sector metrics that shape AJG’s outlook include: (1) FY 2023 revenue of roughly **$8.5 billion** with an operating margin near **13%**, reflecting efficient cost control; (2) a **combined ratio** in its commercial lines that has trended below 95%, indicating underwriting profitability; and (3) exposure to macro drivers such as construction activity, cyber-risk demand, and interest-rate movements, which influence premium pricing and investment income. The insurance-brokerage industry is also benefiting from a **low-interest-rate environment reversal**, which is boosting investment yields for carriers and, indirectly, brokerage commissions.
For a deeper quantitative look at AJG’s valuation metrics, the ValueRay platform offers a concise dashboard worth reviewing.
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income: 1.60b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -1.95 > 1.0 |
| NWC/Revenue: 17.25% < 20% (prev 18.47%; Δ -1.22% < -1%) |
| CFO/TA 0.02 > 3% & CFO 1.92b > Net Income 1.60b |
| Net Debt (12.29b) to EBITDA (3.62b): 3.39 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (260.4m) vs 12m ago 16.31% < -2% |
| Gross Margin: 56.33% > 18% (prev 0.42%; Δ 5591 % > 0.5%) |
| Asset Turnover: 19.12% > 50% (prev 19.70%; Δ -0.58% > 0%) |
| Interest Coverage Ratio: 4.56 > 6 (EBITDA TTM 3.62b / Interest Expense TTM 579.7m) |
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 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) |
| Altman-Z'' Score: 0.79 = B |
Beneish M -2.81
| DSRI: 1.18 (Receivables 5.43b/3.99b, Revenue 13.03b/11.28b) |
| GMI: 0.74 (GM 56.33% / 41.89%) |
| AQI: 1.32 (AQ_t 0.44 / AQ_t-1 0.33) |
| SGI: 1.16 (Revenue 13.03b / 11.28b) |
| TATA: -0.00 (NI 1.60b - CFO 1.92b) / TA 79.07b) |
| Beneish M-Score: -2.81 (Cap -4..+1) = A |
ValueRay F-Score (Strict, 0-100) 59.45
| 1. Piotroski: 4.0pt |
| 2. FCF Yield: 2.29% |
| 3. FCF Margin: 13.56% |
| 4. Debt/Equity: 0.59 |
| 5. Debt/Ebitda: 3.39 |
| 6. ROIC - WACC: -0.07% |
| 7. RoE: 7.22% |
| 8. Revenue Trend: 86.17% |
| 9. EPS Trend: -23.31% |
What is the price of AJG shares?
Over the past week, the price has changed by -0.66%, over one month by -3.16%, over three months by -9.00% and over the past year by -13.71%.
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 | 293.6 | 15.9% |
| Analysts Target Price | 293.6 | 15.9% |
| ValueRay Target Price | 270.5 | 6.8% |
AJG Fundamental Data Overview January 25, 2026
P/E Forward = 18.5185
P/S = 5.3835
P/B = 2.7708
P/EG = 0.8264
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 = 77.31b USD (65.03b + Debt 13.69b - CCE 1.40b)
Interest Coverage Ratio = 4.56 (Ebit TTM 2.65b / Interest Expense TTM 579.7m)
EV/FCF = 43.75x (Enterprise Value 77.31b / FCF TTM 1.77b)
FCF Yield = 2.29% (FCF TTM 1.77b / Enterprise Value 77.31b)
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 = 0.98 (Enterprise Value 77.31b / 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 = 2.35% (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 = 5.99% (E(65.03b)/V(78.71b) * Re(7.06%) + D(13.69b)/V(78.71b) * Rd(1.17%) * (1-Tc(0.21)))
Discount Rate = 7.06% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 100.0 | Cagr: 9.72%
[DCF Debug] Terminal Value 86.45% ; FCFF base≈2.02b ; Y1≈2.12b ; Y5≈2.49b
Fair Price DCF = 230.7 (EV 71.54b - Net Debt 12.29b = Equity 59.25b / Shares 256.8m; r=5.99% [WACC]; 5y FCF grow 5.67% → 2.90% )
EPS Correlation: -23.31 | EPS CAGR: -50.34% | SUE: -4.0 | # QB: 0
Revenue Correlation: 86.17 | Revenue CAGR: 15.46% | SUE: -2.16 | # QB: 0
EPS next Quarter (2026-03-31): EPS=4.53 | Chg30d=-0.020 | Revisions Net=-2 | Analysts=17
EPS next Year (2026-12-31): EPS=13.29 | Chg30d=-0.103 | Revisions Net=-6 | Growth EPS=+24.2% | Growth Revenue=+22.5%
Additional Sources for AJG Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle