Arthur J. Gallagher
Market Cap
US$14.5b
Last Updated
2020/04/04 03:03 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 in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with acceptable 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
Stable Share Price: AJG's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-4.9%
AJG
-6.1%
US Insurance
-2.0%
US Market
1 Year Return
-2.6%
AJG
-25.5%
US Insurance
-15.1%
US Market
Return vs Industry: AJG exceeded the US Insurance industry which returned -24.7% over the past year.
Return vs Market: AJG exceeded the US Market which returned -14.9% over the past year.
Shareholder returns
| AJG | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.9% | -6.1% | -2.0% |
| 30 Day | -25.3% | -28.4% | -19.7% |
| 90 Day | -20.0% | -33.3% | -23.2% |
| 1 Year | -0.8%-2.6% | -23.6%-25.5% | -13.4%-15.1% |
| 3 Year | 44.7%35.4% | -11.8%-18.7% | 10.9%3.7% |
| 5 Year | 82.4%60.0% | 10.6%-2.8% | 28.4%14.4% |
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
1 day ago | Simply Wall St
Does Arthur J. Gallagher & Co.'s (NYSE:AJG) Recent Track Record Look Strong?2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Arthur J. Gallagher & Co.'s (NYSE:AJG) P/E Ratio2 weeks ago | Simply Wall St
Arthur J. Gallagher & Co. (NYSE:AJG) Is An Attractive Dividend Stock - Here's WhyValuation
Is Arthur J. Gallagher undervalued compared to its fair value and its price relative to the market?
24.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AJG ($78.76) is trading below our estimate of fair value ($101.62)
Significantly Below Fair Value: AJG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AJG is poor value based on its PE Ratio (21.9x) compared to the Insurance industry average (8.7x).
PE vs Market: AJG is poor value based on its PE Ratio (21.9x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: AJG is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: AJG is overvalued based on its PB Ratio (2.9x) compared to the US Insurance industry average (0.8x).
Next Steps
Future Growth
How is Arthur J. Gallagher forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
13.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AJG's forecast earnings growth (13.6% per year) is above the savings rate (1.7%).
Earnings vs Market: AJG's earnings (13.6% per year) are forecast to grow faster than the US market (12.2% per year).
High Growth Earnings: AJG's earnings are forecast to grow, but not significantly.
Revenue vs Market: AJG's revenue (3.8% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: AJG's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AJG's Return on Equity is forecast to be low in 3 years time (10.7%).
Next Steps
Past Performance
How has Arthur J. Gallagher performed over the past 5 years?
17.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AJG has high quality earnings.
Growing Profit Margin: AJG's current net profit margins (9.7%) are higher than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: AJG's earnings have grown by 17.8% per year over the past 5 years.
Accelerating Growth: AJG's earnings growth over the past year (5.6%) is below its 5-year average (17.8% per year).
Earnings vs Industry: AJG earnings growth over the past year (5.6%) underperformed the Insurance industry 43.7%.
Return on Equity
High ROE: AJG's Return on Equity (13.7%) is considered low.
Next Steps
Financial Health
How is Arthur J. Gallagher's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: AJG has a low level of unsold assets or inventory.
Debt Coverage by Assets: AJG's debt is covered by short term assets (assets are 2x debt).
Financial Institutions Analysis
Asset Level: AJG's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if AJG has a sufficient allowance for bad loans.
Low Risk Liabilities: AJG reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AJG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AJG has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AJG has an appropriate level of bad loans.
Next Steps
Dividend
What is Arthur J. Gallagher's current dividend yield, its reliability and sustainability?
2.36%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AJG's dividend (2.29%) is higher than the bottom 25% of dividend payers in the US market (2.04%).
High Dividend: AJG's dividend (2.29%) is low compared to the top 25% of dividend payers in the US market (5.7%).
Stability and Growth of Payments
Stable Dividend: AJG's dividends per share have been stable in the past 10 years.
Growing Dividend: AJG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.8%), AJG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AJG's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.8yrs
Average management tenure
CEO
Pat Gallagher (67yo)
25.25s
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
Compensation vs Market: Pat's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD11.87M).
Compensation vs Earnings: Pat's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Corporate VP & Chief Financial Officer | 17yrs | US$4.42m | 0.027% $3.9m | |
| Corporate VP | 13.25yrs | US$3.29m | 0.011% $1.6m | |
| Corporate VP and President of Global Property & Casualty Brokerage | 3.25yrs | US$4.32m | 0.23% $33.1m | |
| Corporate VP & President of Risk Management Operation | 10.25yrs | US$3.21m | 0.019% $2.7m | |
| Chairman of Canada | no data | US$8.96m | no data | |
| Chairman | 25.25yrs | no data | 0.45% $65.5m | |
| Vice President | no data | no data | no data | |
| Chief Accounting Officer & Controller | 19.25yrs | no data | 0.018% $2.6m | |
| Global Chief Information Officer and Corporate Vice President | 4.92yrs | no data | no data | |
| Vice President of Investor Relations | 4.25yrs | no data | no data |
11.8yrs
Average Tenure
57yo
Average Age
Experienced Management: AJG's management team is seasoned and experienced (11.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 25.25yrs | no data | 0.45% $65.5m | |
| Independent Director | 6.75yrs | US$276.34k | 0.0091% $1.3m | |
| Independent Director | 5.42yrs | US$256.34k | 0.0042% $610.2k | |
| Lead Director | 4.25yrs | US$286.34k | 0.025% $3.7m | |
| Independent Director | 14.5yrs | US$271.34k | 0.016% $2.3m | |
| Independent Director | 4.25yrs | US$256.34k | 0.0044% $634.8k | |
| Independent Director | 13.5yrs | US$281.34k | 0.021% $3.1m | |
| Independent Director | 12.25yrs | US$256.34k | 0.017% $2.4m | |
| Independent Director | 10.92yrs | US$256.34k | 0.0038% $545.1k | |
| Chairman of Technical Advisory Board | 4.5yrs | no data | no data |
8.8yrs
Average Tenure
68yo
Average Age
Experienced Board: AJG's board of directors are considered experienced (8.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$14.459b
- Shares outstanding: 189.61m
- 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 |
| GAH | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Jun 1984 |
| AJG * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1984 |
| A1JG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 03:03 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.