(AJG) Arthur J Gallagher - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US3635761097

Insurance, Reinsurance, Brokerage, Claims, Consulting

Insurance Brokers
Market Cap in USD: 67,948m

IPO / Inception: 1984-09-07
Return 12m vs S&P 500: -22.7%

EPS (Earnings per Share)

EPS CAGR: -50.34%
EPS Trend: -23.3%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: 15.46%
Rev. Trend: 86.2%

Last SUE: -2.16
Qual. Beats: 0

Dividends

Dividend Yield	0.85%
Yield on Cost 5y	2.31%
Yield CAGR 5y	7.87%
Payout Consistency	97.8%
Payout Ratio	27.4%

Risk via 5d forecast
Volatility	19.9%
Value at Risk 5%th	33.5%
Relative Tail Risk	2.23%

Reward TTM
Sharpe Ratio	-0.31
Alpha	-13.31
CAGR/Max DD	0.37

Character TTM
Hurst Exponent	0.531
Beta	0.303
Beta Downside	0.350

Drawdowns 3y
Max DD	31.34%
Mean DD	6.12%
Median DD	3.59%

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 (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

(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) 59.39

1. Piotroski 4.0pt

2. FCF Yield 2.20%

3. FCF Margin 13.56%

4. Debt/Equity 0.59

5. Debt/Ebitda 3.39

6. ROIC - WACC (= -0.09)%

7. RoE 7.22%

8. Rev. Trend 86.17%

9. EPS Trend -23.31%

What is the price of AJG shares?

As of January 12, 2026, the stock is trading at USD 264.59 with a total of 820,770 shares traded.
Over the past week, the price has changed by +0.51%, over one month by +6.85%, over three months by -10.98% and over the past year by -6.61%.

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.

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	300.1	13.4%
Analysts Target Price	300.1	13.4%
ValueRay Target Price	288.4	9%

AJG Fundamental Data Overview January 12, 2026

P/E Trailing = 42.1994
P/E Forward = 19.5695
P/S = 5.6255
P/B = 2.9281
P/EG = 0.8733
Beta = 0.675
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 = 80.23b USD (67.95b + Debt 13.69b - CCE 1.40b)
Interest Coverage Ratio = 4.56 (Ebit TTM 2.65b / Interest Expense TTM 579.7m)
EV/FCF = 45.40x (Enterprise Value 80.23b / FCF TTM 1.77b)
FCF Yield = 2.20% (FCF TTM 1.77b / Enterprise Value 80.23b)
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 = 1.01 (Enterprise Value 80.23b / 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 = 6.01% (E(67.95b)/V(81.63b) * Re(7.03%) + D(13.69b)/V(81.63b) * Rd(1.17%) * (1-Tc(0.21)))
Discount Rate = 7.03% (= 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 86.40% ; FCFF base≈2.02b ; Y1≈2.12b ; Y5≈2.49b
Fair Price DCF = 229.5 (EV 71.23b - Net Debt 12.29b = Equity 58.94b / Shares 256.8m; r=6.01% [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=4.54 | Chg30d=+0.002 | Revisions Net=+2 | Analysts=16
EPS next Year (2026-12-31): EPS=13.36 | Chg30d=-0.078 | Revisions Net=-5 | Growth EPS=+24.7% | Growth Revenue=+21.5%

Additional Sources for AJG Stock

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