AJG:NYE-Arthur J. Gallagher & Co (USD)

COMMON STOCK | Insurance Brokers | NYE

Last Closing Price

USD 104.96

Change

+1.99 (+1.93)%

Market Cap

USD 19.72B

Volume

0.56M

Average Target Price

USD 106.65 (+1.61%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom. Its Brokerage segment consists of retail and wholesale insurance brokerage operations. It offers brokerage and consulting services to businesses and organizations, including commercial, not-for-profit, and public entities, as well as individuals in the areas of insurance placement, risk of loss management, and management of employer sponsored benefit programs. This segment also assist retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; acts as a brokerage wholesaler, and managing general agent or managing general underwriter distributing specialized insurance coverage's for underwriting enterprises; and performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance. The company's Risk Management segment provides contract claim settlement and administration services for enterprises and public entities; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent insurance brokers and consultants. It serves commercial, industrial, public entity, religious, and not-for-profit entities. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois. Address: 2850 Golf Road, Rolling Meadows, IL, United States, 60008

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-09-28 )

Largest Industry Peers for Insurance Brokers

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
MMC Marsh & McLennan Companies, In..

+1.58 (+1.40%)

USD57.22B 28.47 17.89
AON Aon Plc

+7.07 (+3.60%)

USD45.49B 26.02 12.87
BRO Brown & Brown, Inc

+0.93 (+2.12%)

USD12.43B 28.10 17.28
CRD-A Crawford & Company

+0.10 (+1.49%)

USD0.36B 14.84 11.95
CRD-B Crawford & Company

+0.07 (+1.06%)

USD0.35B 13.61 11.95

ETFs Containing AJG

Symbol Name Weight Mer Price(Change) Market Cap
IAK iShares U.S. Insurance ET.. 0.00 % 0.43 %

+1.30 (+2.39%)

USD0.06B
LGLV SPDR SSGA US Large Cap Lo.. 0.00 % 0.12 %

+1.69 (+1.58%)

USD0.66B

Market Performance

  Market Performance vs.
Industry/Classification (Insurance Brokers)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 10.22% 83% B 84% B
Dividend Return 1.42% 100% A+ 45% F
Total Return 11.63% 83% B 84% B
Trailing 12 Months  
Capital Gain 17.18% 83% B 83% B
Dividend Return 1.99% 100% A+ 45% F
Total Return 19.17% 83% B 84% B
Trailing 5 Years  
Capital Gain 154.26% 83% B 92% A-
Dividend Return 19.77% 100% A+ 63% D
Total Return 174.03% 83% B 93% A
Average Annual (5 Year Horizon)  
Capital Gain 21.08% N/A N/A 91% A-
Dividend Return 2.73% N/A N/A 64% D
Total Return 23.81% N/A N/A 92% A-
Risk Return Profile  
Volatility (Standard Deviation) 9.07% N/A N/A 75% C
Risk Adjusted Return 262.58% N/A N/A 100% A+
Market Capitalization 19.72B 67% D+ 90% A-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Insurance Brokers)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 27.32 50% F 24% F
Price/Book Ratio 3.57 50% F 21% F
Price / Cash Flow Ratio 17.62 67% D+ 19% F
EV/EBITDA 16.52 50% F 32% F
Management Effectiveness  
Return on Equity 14.50% 67% D+ 81% B-
Return on Invested Capital 54.43% 100% A+ 98% A+
Return on Assets 2.72% 17% F 60% D-
Debt to Equity Ratio 74.02% 83% B 47% F
Technical Ratios  
Short Ratio 1.45 100% A+ 61% D-
Short Percent 0.82% 80% B- 86% B
Beta 0.70 83% B 72% C-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.