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

COMMON STOCK | Insurance Brokers | NYE

Last Closing Price

USD 154.04

Change

+1.78 (+1.17)%

Market Cap

USD 31.48B

Volume

0.94M

Avg Analyst Target

USD 158.11 (+2.64%)

Avg User Target

USD
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, India, 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: 2021-09-24 )

Largest Industry Peers for Insurance Brokers

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

+0.93 (+0.59%)

USD78.83B 34.57 19.06
AON Aon plc

+0.88 (+0.30%)

USD67.34B 32.82 21.24
BRO Brown & Brown Inc

+0.62 (+1.08%)

USD16.19B 28.61 18.89
CRD-A Crawford & Company

+0.03 (+0.33%)

USD0.48B 9.51 5.60
CRD-B Crawford & Company

+0.19 (+2.09%)

USD0.48B 9.31 5.60

ETFs Containing AJG

Symbol Name Weight Mer Price(Change) Market Cap
IAK iShares U.S. Insurance ET.. 0.00 % 0.42 %

-0.18 (-0.22%)

USD0.10B
DVOL First Trust Exchange-Trad.. 0.00 % 0.60 %

-0.08 (-0.27%)

USD0.12B
TPHD Timothy Plan High Dividen.. 0.00 % 0.52 %

+0.03 (+0.11%)

USD0.14B
TPLC Timothy Plan US Large/Mid.. 0.00 % 0.52 %

+0.10 (+0.28%)

USD0.20B
TPHE Timothy Plan - Timothy Pl.. 0.00 % 0.00 %

+0.01 (+0.05%)

N/A
TPLE Timothy Plan - Timothy Pl.. 0.00 % 0.00 %

+0.02 (+0.08%)

N/A

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 24.52% 50% F 77% C+
Dividend Return 1.16% 50% F 32% F
Total Return 25.68% 33% F 76% C
Trailing 12 Months  
Capital Gain 49.60% 83% B 71% C-
Dividend Return 1.84% 67% D+ 31% F
Total Return 51.43% 83% B 70% C-
Trailing 5 Years  
Capital Gain 203.95% 83% B 92% A-
Dividend Return 16.85% 100% A+ 62% D-
Total Return 220.80% 100% A+ 93% A
Average Annual (5 Year Horizon)  
Capital Gain 24.18% 100% A+ 85% B
Dividend Return 2.35% 100% A+ 54% F
Total Return 26.53% 100% A+ 85% B
Risk Return Profile  
Volatility (Standard Deviation) 13.84% 67% D+ 75% C
Risk Adjusted Return 191.65% 83% B 99% A+
Market Capitalization 31.48B 67% D+ 92% A-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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 34.02 33% F 21% F
Price/Book Ratio 3.63 67% D+ 27% F
Price / Cash Flow Ratio 17.96 67% D+ 26% F
EV/EBITDA 19.30 33% F 28% F
Management Effectiveness  
Return on Equity 13.49% 17% F 62% D-
Return on Invested Capital 9.97% 33% F 77% C+
Return on Assets 3.37% 17% F 60% D-
Debt to Equity Ratio 68.45% 50% F 52% F
Technical Ratios  
Short Ratio 1.84 83% B 59% F
Short Percent 0.90% 67% D+ 79% C+
Beta 0.69 67% D+ 75% 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 Ratings

Target Price Action Rating Action Analyst Rating Price Date

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User / Independent Analyst Ratings

User Name Target Rating Target Horizon (Months) Target Price User Analysis Date Comment

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 risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

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.

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.

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.

Poor return on equity

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

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.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

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.