Arthur J. Gallagher
Market Cap
US$16.2b
Last Updated
2019/09/14 23:35 UTC
Data Sources
Company Financials +
Executive Summary
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services to entities in the United States and internationally.
Snowflake
Fundamentals
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has Arthur J. Gallagher's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-3.9%
NYSE:AJG
0.6%
US Insurance
1.2%
US Market
1 Year Return
16.1%
NYSE:AJG
9.3%
US Insurance
1.7%
US Market
AJG outperformed the Insurance industry which returned 9.3% over the past year.
AJG outperformed the Market in United States of America which returned 1.7% over the past year.
Share holder returns
| AJG | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.9% | 0.6% | 1.2% |
| 30 Day | -1.7% | 3.1% | 4.9% |
| 90 Day | -0.8% | 1.3% | 3.7% |
| 1 Year | 18.5%16.1% | 11.9%9.3% | 3.9%1.7% |
| 3 Year | 88.3%75.2% | 48.0%36.7% | 47.2%37.7% |
| 5 Year | 120.8%92.4% | 68.3%48.2% | 60.0%42.4% |
Price Volatility Vs. Market
How volatile is Arthur J. Gallagher's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
What Kind Of Shareholder Owns Most Arthur J. Gallagher & Co. (NYSE:AJG) Stock?3 months ago | Simply Wall St
How Many Arthur J. Gallagher & Co. (NYSE:AJG) Shares Have Insiders Sold, In The Last Year?3 months ago | Simply Wall St
How Arthur J. Gallagher & Co. (NYSE:AJG) Could Add Value To Your PortfolioValuation
Is Arthur J. Gallagher undervalued based on future cash flows and its price relative to the stock market?
23.26x
Price to Earnings (PE) ratio
Intrinsic Value Based on Future Cash Flows
Arthur J. Gallagher's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Arthur J. Gallagher's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Price Based on Earnings
Arthur J. Gallagher is overvalued based on earnings compared to the US Insurance industry average.
Arthur J. Gallagher is overvalued based on earnings compared to the United States of America market.
Price Based on Expected Growth
Arthur J. Gallagher is poor value based on expected growth next year.
Price Based on Value of Assets
Arthur J. Gallagher is overvalued based on assets compared to the US Insurance industry average.
Next Steps
Future Growth
How is Arthur J. Gallagher expected to perform in the next 1 to 3 years based on estimates from 9 analysts?
15.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
Arthur J. Gallagher's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Arthur J. Gallagher's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
Arthur J. Gallagher's revenue growth is positive but not above the United States of America market average.
Arthur J. Gallagher's earnings growth is expected to exceed the United States of America market average.
Arthur J. Gallagher's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Earnings per Share Growth Estimates
Future Return on Equity
Arthur J. Gallagher is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
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Past Performance
How has Arthur J. Gallagher performed over the past 5 years?
18.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Arthur J. Gallagher's year on year earnings growth rate has been positive over the past 5 years.
Arthur J. Gallagher's 1-year earnings growth exceeds its 5-year average (20.7% vs 18.3%)
Arthur J. Gallagher's earnings growth has exceeded the US Insurance industry average in the past year (20.7% vs 3.1%).
Return on Equity
Arthur J. Gallagher has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Return on Assets
Arthur J. Gallagher used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
Return on Capital Employed
Arthur J. Gallagher's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
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Financial Health
How is Arthur J. Gallagher's financial position?
Financial Position Analysis
Arthur J. Gallagher is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Arthur J. Gallagher's cash and other short term assets cover its long term commitments.
Debt to Equity History and Analysis
Arthur J. Gallagher's level of debt (89.5%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (77.4% vs 89.5% today).
Debt is not well covered by operating cash flow (19.7%, less than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 8.7x coverage).
Balance Sheet
Low level of unsold assets.
Debt is covered by short term assets, assets are 2.2x debt.
Next Steps
Dividend
What is Arthur J. Gallagher's current dividend yield, its reliability and sustainability?
2.04%
Expected Dividend Yield
Dividend Yield and Payments Analysis
Arthur J. Gallagher's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
Arthur J. Gallagher's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).
Dividends per share have been stable in the past 10 years.
Dividends per share have increased over the past 10 years.
Current Payout to Shareholders
Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to Shareholders
Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
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Management
What is the CEO of Arthur J. Gallagher's salary, the management and board of directors tenure and is there insider trading?
11.2yrs
Average management tenure
CEO
Pat Gallagher (67yo)
24.7yrs
Tenure
Mr. J. Patrick Gallagher, Jr. also known as Pat, serves as the Chief Executive Officer and President of Gallagher Koster (alternate name, Koster Insurance Agency, Inc.) and VEBA Service Group, LLC. Mr. Gal ...
CEO Compensation Analysis
Insufficient data for Pat to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Pat's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
Management Age and Tenure
11.2yrs
Average Tenure
57yo
Average Age
The average tenure for the Arthur J. Gallagher management team is over 5 years, this suggests they are a seasoned and experienced team.
Board Age and Tenure
10.3yrs
Average Tenure
68yo
Average Age
The average tenure for the Arthur J. Gallagher board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Insider Trading
Arthur J. Gallagher individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,250 |
| Max Price | US$90.84 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,250 |
| Max Price | US$92.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,200 |
| Max Price | US$85.11 |
| Entity | Individual |
| Shares | 1,990 |
| Max Price | US$84.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 800 |
| Max Price | US$83.08 |
| Entity | Individual |
| Role | Lead Director Lead Director |
| Shares | 5,000 |
| Max Price | US$79.74 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,100 |
| Max Price | US$77.66 |
| Entity | Individual |
| Role | Senior Key Executive Corporate VP and President of Global Property & Casualty Brokerage |
| Shares | 4,000 |
| Max Price | US$73.20 |
Ownership Breakdown
Management Team
Pat Gallagher (67yo)
Chairman
- Tenure: 24.7yrs
Doug Howell (57yo)
Corporate VP & Chief Financial Officer
- Tenure: 16.4yrs
- Compensation: US$4.19m
Sean Connelly (52yo)
Global Chief Information Officer and Corporate Vice President
- Tenure: 4.3yrs
Tom Gallagher (60yo)
Corporate VP and President of Global Property & Casualty Brokerage
- Tenure: 2.7yrs
- Compensation: US$4.51m
David Long (67yo)
Vice President
- Tenure: 0yrs
Richard Cary (56yo)
Chief Accounting Officer
- Tenure: 0yrs
Walt Bay (56yo)
Corporate VP
- Tenure: 12.7yrs
- Compensation: US$3.11m
Ray Iardella
Vice President of Investor Relations
- Tenure: 3.7yrs
Scott Hudson (57yo)
Corporate VP
- Tenure: 9.7yrs
- Compensation: US$3.18m
Patrick Gallagher
Executive Vice President of Midwest Region
- Tenure: 0yrs
- Compensation: US$8.06m
Board Members
Pat Gallagher (67yo)
Chairman
- Tenure: 24.7yrs
Sherry Barrat (69yo)
Independent Director
- Tenure: 6.2yrs
- Compensation: US$260.41k
David Coldman (71yo)
Independent Director
- Tenure: 4.8yrs
- Compensation: US$240.41k
David Johnson (63yo)
Lead Director
- Tenure: 3.7yrs
- Compensation: US$270.41k
Kay McCurdy (68yo)
Independent Director
- Tenure: 13.9yrs
- Compensation: US$255.41k
Richard Cary (56yo)
Chief Accounting Officer
- Tenure: 0yrs
Bill Bax (75yo)
Independent Director
- Tenure: 12.9yrs
- Compensation: US$265.41k
Norman Rosenthal (68yo)
Independent Director
- Tenure: 11.7yrs
- Compensation: US$240.41k
Frank English (73yo)
Independent Director
- Tenure: 10.3yrs
- Compensation: US$240.41k
David Jack
Chairman of Technical Advisory Board
- Tenure: 3.9yrs
Company Information
Arthur J. Gallagher & Co.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Arthur J. Gallagher & Co.
- Ticker: AJG
- Exchange: NYSE
- Founded: 1927
- Industry: Insurance Brokers
- Sector: Insurance
- Market Cap: US$16.184b
- Shares outstanding: 186.07m
- Website: https://www.ajg.com
Number of Employees
Location
- Arthur J. Gallagher & Co.
- 2850 Golf Road
- Rolling Meadows
- Illinois
- 60008
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AJG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 1984 |
| GAH | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1984 |
| 0ITL | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 1984 |
| AJG * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1984 |
Biography
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services to entities in the United States and inter ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/09/14 23:35 |
| End of Day Share Price | 2019/09/13 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.