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

COMMON STOCK | Insurance Brokers | NYE

Last Closing Price

USD 150.79

Change

-0.37 (-0.24)%

Market Cap

USD 29.61B

Volume

0.63M

Average Target Price

USD 137.89 (-8.55%)
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: 2021-05-10 )

Largest Industry Peers for Insurance Brokers

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

-0.18 (-0.13%)

USD70.16B 31.54 18.84
AON Aon plc

-0.07 (-0.03%)

USD58.33B 28.34 19.41
BRO Brown & Brown, Inc

-0.32 (-0.60%)

USD15.13B 29.04 19.46
CRD-B Crawford & Company

-0.05 (-0.48%)

USD0.51B 17.81 8.12
CRD-A Crawford & Company

-0.12 (-1.23%)

USD0.51B 18.40 8.12

ETFs Containing AJG

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

-0.20 (-0.24%)

USD0.09B
KIE SPDR S&P Insurance ETF 0.00 % 0.35 %

-0.41 (-1.02%)

USD0.45B
RYF Invesco S&P 500 Equal Wei.. 0.00 % 0.40 %

-0.03 (-0.05%)

USD0.37B
DVOL First Trust Dorsey Wright.. 0.00 % 0.60 %

-0.14 (-0.50%)

USD0.11B
TPHD Timothy Plan High Dividen.. 0.00 % 0.52 %

+0.04 (+0.12%)

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

-0.20 (-0.57%)

USD0.19B

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 21.89% 50% F 74% C
Dividend Return 0.39% 17% F 24% F
Total Return 22.28% 50% F 73% C
Trailing 12 Months  
Capital Gain 73.60% 100% A+ 73% C
Dividend Return 2.11% 67% D+ 31% F
Total Return 75.71% 100% A+ 72% C-
Trailing 5 Years  
Capital Gain 219.88% 100% A+ 92% A-
Dividend Return 17.69% 100% A+ 61% D-
Total Return 237.57% 100% A+ 92% A-
Average Annual (5 Year Horizon)  
Capital Gain 21.97% 83% B 86% B
Dividend Return 2.47% 100% A+ 58% F
Total Return 24.45% 100% A+ 87% B+
Risk Return Profile  
Volatility (Standard Deviation) 12.03% 67% D+ 78% C+
Risk Adjusted Return 203.15% 83% B 100% A+
Market Capitalization 29.61B 67% D+ 91% 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 34.72 17% F 22% F
Price/Book Ratio 4.33 50% F 25% F
Price / Cash Flow Ratio 16.90 67% D+ 29% F
EV/EBITDA 20.27 17% F 33% F
Management Effectiveness  
Return on Equity 15.13% 33% F 77% C+
Return on Invested Capital 10.03% 33% F 76% C
Return on Assets 3.51% 17% F 67% D+
Debt to Equity Ratio 68.96% 50% F 52% F
Technical Ratios  
Short Ratio 2.30 100% A+ 45% F
Short Percent 1.37% 60% D- 78% C+
Beta 0.70 50% F 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 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 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.

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 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.