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

COMMON STOCK | Insurance Brokers | NYE

Last Closing Price

USD 81.51

Change

-1.71 (-2.05)%

Market Cap

USD 15.45B

Volume

1.69M

Average Target Price

USD 105.58 (+29.53%)
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.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-31 )

Largest Industry Peers for Insurance Brokers

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

-3.09 (-3.45%)

USD43.57B 25.35 14.41
AON Aon plc

-5.99 (-3.50%)

USD38.26B 25.98 14.45
BRO Brown & Brown, Inc

-1.08 (-2.90%)

USD10.19B 25.66 14.99
CRD-B Crawford & Company

+0.16 (+2.57%)

USD0.36B 26.97 6.58
CRD-A Crawford & Company

+0.15 (+2.13%)

USD0.35B 30.52 7.12

ETFs Containing AJG

Symbol Name Weight Mer Price(Change) Market Cap
IAK iShares U.S. Insurance ET.. 3.42 % 0.43 %

-1.79 (-3.49%)

USD0.08B
KIE SPDR S&P Insurance ETF 2.55 % 0.35 %

-0.91 (-3.52%)

USD0.79B
RYF Invesco S&P 500 Equal Wei.. 1.79 % 0.40 %

-1.18 (-3.62%)

USD0.24B
TPHD Timothy Plan High Dividen.. 1.61 % 0.52 %

-0.38 (-1.96%)

USD0.10B
XRLV Invesco S&P 500 ex-Rate S.. 1.16 % 0.25 %

-0.64 (-1.99%)

USD0.12B
FUD:CA First Trust Value Line Di.. 0.54 % 0.70 %

+0.04 (+0.17%)

USD0.02B

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 -14.41% 83% B 72% C-
Dividend Return 0.47% 67% D+ 25% F
Total Return -13.93% 83% B 72% C-
Trailing 12 Months  
Capital Gain 3.14% 83% B 88% B+
Dividend Return 2.20% 83% B 53% F
Total Return 5.34% 83% B 89% B+
Trailing 5 Years  
Capital Gain 74.43% 83% B 93% A
Dividend Return 17.12% 100% A+ 63% D
Total Return 91.55% 83% B 93% A
Average Annual (5 Year Horizon)  
Capital Gain 20.07% 67% D+ 89% B+
Dividend Return 2.88% 100% A+ 61% D-
Total Return 22.94% 83% B 90% A-
Risk Return Profile  
Volatility (Standard Deviation) 10.46% 50% F 62% D-
Risk Adjusted Return 219.31% 50% F 98% A+
Market Capitalization 15.45B 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 23.16 100% A+ 24% F
Price/Book Ratio 2.97 67% D+ 19% F
Price / Cash Flow Ratio 13.81 67% D+ 22% F
EV/EBITDA 16.25 17% F 19% F
Management Effectiveness  
Return on Equity 14.63% 67% D+ 75% C
Return on Invested Capital 9.76% 17% F 71% C-
Return on Assets 2.67% 17% F 52% F
Debt to Equity Ratio 74.47% 83% B 48% F
Technical Ratios  
Short Ratio 2.42 50% F 39% F
Short Percent 2.05% 25% F 77% C+
Beta 0.76 67% D+ 64% D
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 total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

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:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Poor capital utilization

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

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.

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.