(AJG) Arthur J Gallagher - Overview
Sector: Financial Services | Industry: Insurance Brokers | Exchange: NYSE (USA) | Market Cap: 50.792m USD | Total Return: -41.3% in 12m
Insurance Brokerage, Reinsurance, Claims Administration, Risk Consulting
Total Rating 35
Safety 46
Buy Signal -0.51
Insurance Brokers
Industry Rotation: -4.1
Industry Rotation: -4.1
Market Cap:
50.8B
Avg Turnover: 333M
Avg Turnover: 333M
Risk 3d forecast
Volatility25.6%
VaR 5th Pctl4.67%
VaR vs Median10.9%
Reward TTM
Sharpe Ratio-1.92
Rel. Str. IBD9.1
Rel. Str. Peer Group35
Character TTM
Beta0.068
Beta Downside0.169
Hurst Exponent0.538
Drawdowns 3y
Max DD44.40%
CAGR/Max DD-0.04
CAGR/Mean DD-0.17
EPS (Earnings per Share)
EPS CAGR: 29.41%
EPS Trend: 61.8%
EPS Trend: 61.8%
Last SUE: 0.26
Qual. Beats: 0
Qual. Beats: 0
Revenue
Rev. CAGR: 25.33%
Rev. Trend: 90.6%
Rev. Trend: 90.6%
Last SUE: -0.09
Qual. Beats: 0
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Description: AJG Arthur J Gallagher
Arthur J. Gallagher & Co. (AJG) is a global insurance brokerage and risk management firm headquartered in Illinois. The company operates through two primary divisions: Brokerage and Risk Management. The Brokerage segment facilitates retail and wholesale insurance placements, manages specialized underwriting programs, and consults on employer-sponsored benefit plans. The Risk Management segment focuses on third-party claims administration, loss control consulting, and property appraisals for diverse commercial and public entities.
Operating within the insurance brokerage industry, AJG functions as an intermediary rather than an underwriter, meaning it earns commission and fee revenue without taking on the direct balance sheet risk of the insurance policies themselves. This business model typically benefits from a hard insurance market, where rising premiums lead to higher commission income. The company maintains a highly fragmented client base, serving sectors ranging from nonprofit organizations to industrial enterprises.
Investors can evaluate the company’s historical performance and valuation metrics on ValueRay to further their analysis. Founded in 1927, AJG has expanded its global footprint through a consistent strategy of acquiring smaller local agencies to scale its distribution network.
- High renewal rates and premium increases drive organic brokerage revenue growth
- Strategic acquisitions of smaller regional brokerages expand market share and earnings
- Rising commercial insurance pricing cycles boost commission-based revenue across all segments
- Expansion of high-margin consulting and risk management services improves overall profitability
- Interest rate fluctuations impact fiduciary investment income and debt servicing costs
Piotroski VR‑10 (Strict)
4.5
| Net Income: 1.61b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -1.03 > 1.0 |
| NWC/Revenue: 16.63% < 20% (prev 136.4%; Δ -119.8% < -1%) |
| CFO/TA 0.03 > 3% & CFO 2.02b > Net Income 1.61b |
| Net Debt (11.33b) to EBITDA (3.92b): 2.89 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (259.8m) vs 12m ago 0.15% < -2% |
| Gross Margin: 65.99% > 18% (prev 0.43%; Δ 6.56k% > 0.5%) |
| Asset Turnover: 19.65% > 50% (prev 16.23%; Δ 3.42% > 0%) |
| Interest Coverage Ratio: 4.24 > 6 (EBITDA TTM 3.92b / Interest Expense TTM 638.4m) |
Altman Z''
0.83
| A: 0.03 (Total Current Assets 42.02b - Total Current Liabilities 39.53b) / Total Assets 78.30b |
| B: 0.08 (Retained Earnings 6.45b / Total Assets 78.30b) |
| C: 0.04 (EBIT TTM 2.71b / Avg Total Assets 76.20b) |
| D: 0.11 (Book Value of Equity 6.14b / Total Liabilities 54.50b) |
| Altman-Z'' Score: 0.83 = B |
Beneish M
-2.72
| DSRI: 1.06 (Receivables 5.96b/4.52b, Revenue 14.97b/12.03b) |
| GMI: 0.65 (GM 65.99% / 43.05%) |
| AQI: 1.68 (AQ_t 0.45 / AQ_t-1 0.26) |
| SGI: 1.25 (Revenue 14.97b / 12.03b) |
| TATA: -0.01 (NI 1.61b - CFO 2.02b) / TA 78.30b) |
| Beneish M-Score: -2.72 (Cap -4..+1) = A |
What is the price of AJG shares?
As of May 18, 2026, the stock is trading at USD 199.95 with a total of 2,388,399 shares traded.
Over the past week, the price has changed by +0.54%, over one month by -9.77%, over three months by -6.28% and over the past year by -41.27%.
Over the past week, the price has changed by +0.54%, over one month by -9.77%, over three months by -6.28% and over the past year by -41.27%.
Is AJG a buy, sell or hold?
Arthur J Gallagher has received a consensus analysts rating of 3.82.
Therefore, it is recommended to buy AJG.
- StrongBuy: 6
- Buy: 3
- Hold: 7
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the AJG price?
| Analysts Target Price | 267.1 | 33.6% |
Arthur J Gallagher (AJG) - Fundamental Data Overview
as of 16 May 2026
P/E Trailing = 31.9354 P/E Forward = 14.8588
P/S = 3.5774
P/B = 2.1492
P/EG = 0.8542
Revenue TTM = 14.97b USD
EBIT TTM = 2.71b USD
EBITDA TTM = 3.92b USD
Long Term Debt = 12.10b USD (from longTermDebt, last fiscal year)
Short Term Debt = 640.0m USD (from shortTermDebt, last quarter)
Debt = 12.74b USD (corrected: LT Debt 12.10b + ST Debt 640.0m)
Net Debt = 11.33b USD (recalculated: Debt 12.74b - CCE 1.41b)
Enterprise Value = 62.12b USD (50.79b + Debt 12.74b - CCE 1.41b)
Interest Coverage Ratio = 4.24 (Ebit TTM 2.71b / Interest Expense TTM 638.4m)
EV/FCF = 33.36x (Enterprise Value 62.12b / FCF TTM 1.86b)
FCF Yield = 3.00% (FCF TTM 1.86b / Enterprise Value 62.12b)
FCF Margin = 12.44% (FCF TTM 1.86b / Revenue TTM 14.97b)
Net Margin = 10.76% (Net Income TTM 1.61b / Revenue TTM 14.97b)
Gross Margin = 65.99% ((Revenue TTM 14.97b - Cost of Revenue TTM 5.09b) / Revenue TTM)
Gross Margin QoQ = 84.87% (prev 39.11%)
Tobins Q-Ratio = 0.79 (Enterprise Value 62.12b / Total Assets 78.30b)
Interest Expense / Debt = 1.24% (Interest Expense 158.0m / Debt 12.74b)
Taxrate = 21.09% (220.0m / 1.04b)
NOPAT = 2.14b (EBIT 2.71b * (1 - 21.09%))
Current Ratio = 1.06 (Total Current Assets 42.02b / Total Current Liabilities 39.53b)
Debt / Equity = 0.54 (Debt 12.74b / totalStockholderEquity, last quarter 23.77b)
Debt / EBITDA = 2.89 (Net Debt 11.33b / EBITDA 3.92b)
Debt / FCF = 6.08 (Net Debt 11.33b / FCF TTM 1.86b)
Total Stockholder Equity = 23.33b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.11% (Net Income 1.61b / Total Assets 78.30b)
RoE = 6.91% (Net Income TTM 1.61b / Total Stockholder Equity 23.33b)
RoCE = 7.64% (EBIT 2.71b / Capital Employed (Equity 23.33b + L.T.Debt 12.10b))
RoIC = 5.91% (NOPAT 2.14b / Invested Capital 36.17b)
WACC = 5.17% (E(50.79b)/V(63.54b) * Re(6.22%) + D(12.74b)/V(63.54b) * Rd(1.24%) * (1-Tc(0.21)))
Discount Rate = 6.22% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: 73.33 | Cagr: 8.48%
[DCF] Terminal Value 86.83% ; FCFF base≈2.13b ; Y1≈2.24b ; Y5≈2.63b
[DCF] Fair Price = 258.2 (EV 77.68b - Net Debt 11.33b = Equity 66.35b / Shares 256.9m; r=6.0% [WACC]; 5y FCF grow 5.67% → 3.0% )
EPS Correlation: 61.83 | EPS CAGR: 29.41% | SUE: 0.26 | # QB: 0
Revenue Correlation: 90.59 | Revenue CAGR: 25.33% | SUE: -0.09 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.86 | Chg30d=-0.97% | Revisions=-64% | Analysts=19
EPS next Quarter (2026-09-30): EPS=3.09 | Chg30d=+1.37% | Revisions=+5% | Analysts=19
EPS current Year (2026-12-31): EPS=13.26 | Chg30d=+0.34% | Revisions=+0% | GrowthEPS=+24.0% | GrowthRev=+22.1%
EPS next Year (2027-12-31): EPS=14.85 | Chg30d=+0.13% | Revisions=-10% | GrowthEPS=+12.0% | GrowthRev=+9.9%
[Analyst] Revisions Ratio: -64%