Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. The company operates in Brokerage and Risk Management segments. …
What to know about AJG
Arthur J. Gallagher & Co. is a large Financial Services company with a mixed financial profile. It scores well on sentiment and risk, but cash flow is worth keeping an eye on.
Should you consider AJG?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Arthur J. Gallagher & Co. is a large-cap Financial Services company with a mixed overall financial profile — it sits in the upper half of Financial Services stocks (27 of 70).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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There is a small dividend (0.01%), but income-focused investors will likely find better yields elsewhere in the market.
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Risk is relatively low — the stock tends to be less volatile than the broader market, which typically means a smoother ride during uncertain periods.
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Analyst sentiment is broadly positive and short interest is low — professionals who cover this stock are mostly optimistic about its near-term prospects.
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On balance the positives outweigh the concerns — worth a closer look if Financial Services fits your investment goals.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how AJG compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 34.69 | Average |
| Forward P/E | 14.39 | Above avg |
| PEG Ratio | 0.92 | Top 25% |
| Price to Sales | 3.87 | Average |
| Price to Book | 2.31 | Above avg |
| EV/EBITDA | 17.03 | Average |
| Earnings Yield | 2.88% | Average |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 42.93% | Average |
| Operating Margin | 28.40% | Above avg |
| Net Profit Margin | 11.35% | Average |
| Return on Equity | 7.01% | Below avg |
| Return on Invested Capital | 2.28% | Below avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 34.60% | Top 25% |
| Revenue Growth (3Y CAGR) | 17.70% | Top 25% |
| EPS Growth (YoY) | 16.20% | Average |
| Free Cash Flow Growth | -26.87% | Below avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.06 | Average |
| Debt to Equity | 0.56 | Above avg |
| Interest Coverage | 3.93 | Average |
| Altman Z-Score | 1.16 | Below avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 1.30% | Average |
| Payout Ratio | 42.88% | Average |
| Dividend Growth (5Y) | -6.12% | Above avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 3.39% | Average |
| OCF to Sales | 13.46% | Average |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.53 | Top 25% |
| Volatility (30-Day) | 28.51% | Above avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 1.99% | Top 25% |
| Avg. Analyst Rating | 1.64 | Top 25% |
| Target Upside % | 23.11% | Above avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 55B | Above avg |
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