(AJG) Arthur J Gallagher - Ratings and Ratios
Insurance, Brokerage, Consulting, Claims, Administration Services
AJG EPS (Earnings per Share)
AJG Revenue
Description: AJG Arthur J Gallagher
Arthur J. Gallagher & Co (NYSE:AJG) is a global insurance and reinsurance brokerage firm that provides a range of services, including insurance placement, risk management, and claims administration. The company operates through two main segments: Brokerage and Risk Management. The Brokerage segment offers retail and wholesale insurance brokerage services, while the Risk Management segment provides contract claim settlement and administration services.
AJGs business model is diversified across various industries, serving commercial, industrial, public, and nonprofit entities, as well as underwriting enterprises. The companys services include risk of loss management, management of employer-sponsored benefit programs, claims management, loss control consulting, and insurance property appraisal. With a global presence, AJG has established a network of correspondent brokers and consultants to deliver its services.
From a financial perspective, AJG has demonstrated a strong track record of growth, with a market capitalization of approximately $78.9 billion. Key performance indicators (KPIs) such as revenue growth, organic revenue growth, and EBITDAC (Earnings Before Interest, Taxes, Depreciation, Amortization, and Commission) margin are crucial in evaluating the companys financial health. Additionally, metrics like client retention rate, new business revenue, and cross-selling ratio can provide insights into AJGs operational efficiency and competitiveness.
To further analyze AJGs performance, it is essential to examine its return on equity (ROE) of 9.41%, which indicates the companys ability to generate profits from shareholder equity. The forward P/E ratio of 28.17 suggests that the market expects AJGs earnings to grow in the future. Other relevant KPIs include the companys dividend yield, payout ratio, and operating cash flow margin, which can provide a more comprehensive understanding of AJGs financial position and growth prospects.
AJG Stock Overview
| Market Cap in USD | 77,586m |
| Sub-Industry | Insurance Brokers |
| IPO / Inception | 1984-09-07 |
AJG Stock Ratings
| Growth Rating | 76.4% |
| Fundamental | 62.2% |
| Dividend Rating | 61.2% |
| Return 12m vs S&P 500 | -11.8% |
| Analyst Rating | 3.82 of 5 |
AJG Dividends
| Dividend Yield 12m | 1.04% |
| Yield on Cost 5y | 3.17% |
| Annual Growth 5y | 5.92% |
| Payout Consistency | 97.8% |
| Payout Ratio | 24.5% |
AJG Growth Ratios
| Growth Correlation 3m | -85.7% |
| Growth Correlation 12m | 50.8% |
| Growth Correlation 5y | 98.8% |
| CAGR 5y | 24.79% |
| CAGR/Max DD 5y | 1.32 |
| Sharpe Ratio 12m | 1.84 |
| Alpha | -5.84 |
| Beta | 0.450 |
| Volatility | 22.23% |
| Current Volume | 769k |
| Average Volume 20d | 1376.3k |
| Stop Loss | 290.6 (-3%) |
| Signal | 0.28 |
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income (1.64b TTM) > 0 and > 6% of Revenue (6% = 748.3m TTM) |
| FCFTA 0.02 (>2.0%) and ΔFCFTA -1.24pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 122.7% (prev 15.54%; Δ 107.1pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.03 (>3.0%) and CFO 2.12b > Net Income 1.64b (YES >=105%, WARN >=100%) |
| Net Debt (-1.00b) to EBITDA (3.50b) ratio: -0.29 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.36 (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 16.84% (target <= -2.0% for YES) |
| Gross Margin 43.58% (prev 42.04%; Δ 1.55pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 17.43% (prev 17.40%; Δ 0.03pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.06 (EBITDA TTM 3.50b / Interest Expense TTM 511.8m) >= 6 (WARN >= 3) |
Altman Z'' 1.83
| (A) 0.19 = (Total Current Assets 57.84b - Total Current Liabilities 42.54b) / Total Assets 80.12b |
| (B) 0.07 = Retained Earnings (Balance) 5.72b / Total Assets 80.12b |
| (C) 0.04 = EBIT TTM 2.59b / Avg Total Assets 71.57b |
| (D) 0.10 = Book Value of Equity 5.48b / Total Liabilities 57.07b |
| Total Rating: 1.83 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 62.24
| 1. Piotroski 4.0pt = -1.0 |
| 2. FCF Yield 2.59% = 1.29 |
| 3. FCF Margin 15.81% = 3.95 |
| 4. Debt/Equity 0.56 = 2.35 |
| 5. Debt/Ebitda 3.69 = -2.43 |
| 6. ROIC - WACC -0.22% = -0.27 |
| 7. RoE 8.45% = 0.70 |
| 8. Rev. Trend 82.51% = 4.13 |
| 9. Rev. CAGR 17.95% = 2.24 |
| 10. EPS Trend 25.85% = 0.65 |
| 11. EPS CAGR 6.22% = 0.62 |
What is the price of AJG shares?
Over the past week, the price has changed by -1.89%, over one month by -3.07%, over three months by -11.65% and over the past year by +3.83%.
Is Arthur J Gallagher a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AJG is around 311.16 USD . This means that AJG is currently overvalued and has a potential downside of 3.85%.
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 | 335.9 | 12.1% |
| Analysts Target Price | 339.5 | 13.3% |
| ValueRay Target Price | 341.4 | 13.9% |
Last update: 2025-08-21 11:08
AJG Fundamental Data Overview
CCE Cash And Equivalents = 14.30b USD (last quarter)
P/E Trailing = 45.716
P/E Forward = 27.248
P/S = 6.7165
P/B = 3.3514
P/EG = 1.237
Beta = 0.686
Revenue TTM = 12.47b USD
EBIT TTM = 2.59b USD
EBITDA TTM = 3.50b USD
Long Term Debt = 12.10b USD (from longTermDebt, last quarter)
Short Term Debt = 797.2m USD (from shortTermDebt, last quarter)
Debt = 12.90b USD (Calculated: Short Term 797.2m + Long Term 12.10b)
Net Debt = -1.00b USD (from netDebt column, last quarter)
Enterprise Value = 76.18b USD (77.59b + Debt 12.90b - CCE 14.30b)
Interest Coverage Ratio = 5.06 (Ebit TTM 2.59b / Interest Expense TTM 511.8m)
FCF Yield = 2.59% (FCF TTM 1.97b / Enterprise Value 76.18b)
FCF Margin = 15.81% (FCF TTM 1.97b / Revenue TTM 12.47b)
Net Margin = 13.16% (Net Income TTM 1.64b / Revenue TTM 12.47b)
Gross Margin = 43.58% ((Revenue TTM 12.47b - Cost of Revenue TTM 7.04b) / Revenue TTM)
Tobins Q-Ratio = 13.91 (Enterprise Value 76.18b / Book Value Of Equity 5.48b)
Interest Expense / Debt = 1.23% (Interest Expense 158.6m / Debt 12.90b)
Taxrate = 21.57% (from yearly Income Tax Expense: 404.4m / 1.87b)
NOPAT = 2.03b (EBIT 2.59b * (1 - 21.57%))
Current Ratio = 1.36 (Total Current Assets 57.84b / Total Current Liabilities 42.54b)
Debt / Equity = 0.56 (Debt 12.90b / last Quarter total Stockholder Equity 23.02b)
Debt / EBITDA = 3.69 (Net Debt -1.00b / EBITDA 3.50b)
Debt / FCF = 6.54 (Debt 12.90b / FCF TTM 1.97b)
Total Stockholder Equity = 19.42b (last 4 quarters mean)
RoA = 2.05% (Net Income 1.64b, Total Assets 80.12b )
RoE = 8.45% (Net Income TTM 1.64b / Total Stockholder Equity 19.42b)
RoCE = 8.22% (Ebit 2.59b / (Equity 19.42b + L.T.Debt 12.10b))
RoIC = 6.50% (NOPAT 2.03b / Invested Capital 31.27b)
WACC = 6.71% (E(77.59b)/V(90.48b) * Re(7.67%)) + (D(12.90b)/V(90.48b) * Rd(1.23%) * (1-Tc(0.22)))
Shares Correlation 5-Years: 100.0 | Cagr: 5.17%
Discount Rate = 7.67% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 79.26% ; FCFE base≈2.12b ; Y1≈2.27b ; Y5≈2.76b
Fair Price DCF = 188.0 (DCF Value 48.19b / Shares Outstanding 256.4m; 5y FCF grow 7.93% → 3.0% )
Revenue Correlation: 82.51 | Revenue CAGR: 17.95%
Rev Growth-of-Growth: -4.03
EPS Correlation: 25.85 | EPS CAGR: 6.22%
EPS Growth-of-Growth: 73.75
Additional Sources for AJG Stock
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