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

COMMON STOCK | Insurance Brokers | NYE

Last Closing Price

USD 155.67

Change

+1.08 (+0.70)%

Market Cap

USD 32.69B

Volume

1.18M

Avg Analyst Target

USD 172.78 (+10.99%)

Avg User Target

USD
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict


Arthur J. Gallagher & Co (AJG) Stock Analysis:
Based on the Arthur J. Gallagher & Co stock forecasts from 8 analysts, the average analyst target price for Arthur J. Gallagher & Co is USD 172.78 over the next 12 months. Arthur J. Gallagher & Co’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Arthur J. Gallagher & Co is Neutral, which is based on 5 positive signals and 6 negative signals. At the last closing, Arthur J. Gallagher & Co’s stock price was USD 155.67. Arthur J. Gallagher & Co’s stock price has changed by -6.78% over the past week, -8.59% over the past month and +30.72% over the last year.

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 Brok ...Read More

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2022-01-20 )

Largest Industry Peers for Insurance Brokers

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

-0.08 (-0.05%)

USD81.39B 35.81 19.61
AON Aon plc

-0.38 (-0.14%)

USD59.63B 67.44 33.73
BRO Brown & Brown Inc

-0.39 (-0.60%)

USD18.25B 31.54 20.92
CRD-B Crawford & Company

-0.21 (-2.72%)

USD0.40B 11.08 6.15
CRD-A Crawford & Company

-0.18 (-2.37%)

USD0.40B 11.04 6.15

ETFs Containing AJG

Symbol Name Weight Mer Price(Change) Market Cap
CZA Invesco Zacks Mid-Cap ETF 0.00 % 0.69 %

-1.08 (-1.17%)

USD0.23B
IAK iShares U.S. Insurance ET.. 0.00 % 0.42 %

-0.17 (-0.20%)

USD0.10B
KIE SPDR S&P Insurance ETF 0.00 % 0.35 %

-0.21 (-0.53%)

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

-0.66 (-1.02%)

USD0.50B
VOE Vanguard Mid-Cap Value In.. 0.00 % 0.07 %

-2.11 (-1.43%)

USD26.78B
DVOL First Trust Exchange-Trad.. 0.00 % 0.60 %

-0.35 (-1.22%)

USD0.14B
KLCD KFA Large Cap Quality Div.. 0.00 % 0.42 %

-0.44 (-1.33%)

USD0.05B

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 -8.25% 67% D+ 24% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -8.25% 67% D+ 23% F
Trailing 12 Months  
Capital Gain 30.72% 67% D+ 85% B
Dividend Return 1.61% 50% F 31% F
Total Return 32.33% 67% D+ 84% B
Trailing 5 Years  
Capital Gain 194.61% 100% A+ 93% A
Dividend Return 16.35% 100% A+ 61% D-
Total Return 210.96% 100% A+ 94% A
Average Annual (5 Year Horizon)  
Capital Gain 25.58% 100% A+ 85% B
Dividend Return 2.24% 100% A+ 53% F
Total Return 27.81% 100% A+ 85% B
Risk Return Profile  
Volatility (Standard Deviation) 14.78% 67% D+ 71% C-
Risk Adjusted Return 188.21% 83% B 100% A+
Market Capitalization 32.69B 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 34.12 50% F 21% F
Price/Book Ratio 4.18 67% D+ 24% F
Price / Cash Flow Ratio 18.65 67% D+ 26% F
EV/EBITDA 21.69 33% F 24% F
Management Effectiveness  
Return on Equity 13.82% 17% F 61% D-
Return on Invested Capital 10.03% 33% F 75% C
Return on Assets 3.56% 17% F 60% D-
Debt to Equity Ratio 68.96% 50% F 51% F
Technical Ratios  
Short Ratio 1.90 67% D+ 51% F
Short Percent 1.06% 50% F 75% 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.