(AJG) Arthur J Gallagher - Ratings and Ratios
Insurance Brokerage, Reinsurance, Claims Administration, Risk Consulting
AJG EPS (Earnings per Share)
AJG Revenue
Description: AJG Arthur J Gallagher
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.
AJG Stock Overview
| Market Cap in USD | 79,596m |
| Sub-Industry | Insurance Brokers |
| IPO / Inception | 1984-09-07 |
AJG Stock Ratings
| Growth Rating | 62.6% |
| Fundamental | 63.0% |
| Dividend Rating | 58.2% |
| Return 12m vs S&P 500 | -15.8% |
| Analyst Rating | 3.82 of 5 |
AJG Dividends
| Dividend Yield 12m | 0.91% |
| Yield on Cost 5y | 2.52% |
| Annual Growth 5y | 7.46% |
| Payout Consistency | 97.8% |
| Payout Ratio | 27.0% |
AJG Growth Ratios
| Growth Correlation 3m | 23.2% |
| Growth Correlation 12m | 21.5% |
| Growth Correlation 5y | 98.5% |
| CAGR 5y | 18.22% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.94 |
| CAGR/Mean DD 3y (Pain Ratio) | 4.04 |
| Sharpe Ratio 12m | 1.23 |
| Alpha | -14.49 |
| Beta | 0.730 |
| Volatility | 28.51% |
| Current Volume | 1149.2k |
| Average Volume 20d | 1184.6k |
| Stop Loss | 272 (-3%) |
| Signal | -0.56 |
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) 63.02
| 1. Piotroski 4.0pt = -1.0 |
| 2. FCF Yield 2.51% = 1.25 |
| 3. FCF Margin 15.81% = 3.95 |
| 4. Debt/Equity 0.58 = 2.34 |
| 5. Debt/Ebitda -0.29 = 2.50 |
| 6. ROIC - WACC (= -1.16)% = -1.45 |
| 7. RoE 8.45% = 0.70 |
| 8. Rev. Trend 82.51% = 6.19 |
| 9. EPS Trend -29.22% = -1.46 |
What is the price of AJG shares?
Over the past week, the price has changed by -7.05%, over one month by -4.17%, over three months by -10.46% and over the past year by -2.76%.
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 292.06 USD . This means that AJG is currently overvalued and has a potential downside of 4.13%.
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 | 339.5 | 21% |
| Analysts Target Price | 339.5 | 21% |
| ValueRay Target Price | 323 | 15.2% |
Last update: 2025-10-04 03:45
AJG Fundamental Data Overview
P/E Trailing = 46.9713
P/E Forward = 22.6244
P/S = 6.8905
P/B = 3.4371
P/EG = 1.0099
Beta = 0.73
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 = 13.30b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.00b USD (from netDebt column, last quarter)
Enterprise Value = 78.59b USD (79.60b + Debt 13.30b - CCE 14.30b)
Interest Coverage Ratio = 5.06 (Ebit TTM 2.59b / Interest Expense TTM 511.8m)
FCF Yield = 2.51% (FCF TTM 1.97b / Enterprise Value 78.59b)
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)
Gross Margin QoQ = 42.68% (prev 48.04%)
Tobins Q-Ratio = 0.98 (Enterprise Value 78.59b / Total Assets 80.12b)
Interest Expense / Debt = 1.19% (Interest Expense 158.6m / Debt 13.30b)
Taxrate = 22.32% (105.2m / 471.4m)
NOPAT = 2.01b (EBIT 2.59b * (1 - 22.32%))
Current Ratio = 1.36 (Total Current Assets 57.84b / Total Current Liabilities 42.54b)
Debt / Equity = 0.58 (Debt 13.30b / totalStockholderEquity, last quarter 23.02b)
Debt / EBITDA = -0.29 (Net Debt -1.00b / EBITDA 3.50b)
Debt / FCF = -0.51 (Net Debt -1.00b / FCF TTM 1.97b)
Total Stockholder Equity = 19.42b (last 4 quarters mean from totalStockholderEquity)
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 / Capital Employed (Equity 19.42b + L.T.Debt 12.10b))
RoIC = 6.43% (NOPAT 2.01b / Invested Capital 31.27b)
WACC = 7.60% (E(79.60b)/V(92.89b) * Re(8.71%) + D(13.30b)/V(92.89b) * Rd(1.19%) * (1-Tc(0.22)))
Discount Rate = 8.71% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 9.72%
[DCF Debug] Terminal Value 76.94% ; FCFE base≈2.12b ; Y1≈2.27b ; Y5≈2.76b
Fair Price DCF = 166.1 (DCF Value 42.58b / Shares Outstanding 256.4m; 5y FCF grow 7.93% → 3.0% )
EPS Correlation: -29.22 | EPS CAGR: -50.52% | SUE: -4.0 | # QB: 0
Revenue Correlation: 82.51 | Revenue CAGR: 17.95% | SUE: 0.47 | # QB: 0
Additional Sources for AJG Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle