Arthur J. Gallagher
Market Cap
US$26.1b
Last Updated
2021/04/16 22:10 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, India, and the United Kingdom. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AJG's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
3.2%
AJG
2.0%
US Insurance
1.3%
US Market
1 Year Return
63.6%
AJG
43.1%
US Insurance
53.9%
US Market
Return vs Industry: AJG exceeded the US Insurance industry which returned 43.1% over the past year.
Return vs Market: AJG exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| AJG | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.2% | 2.0% | 1.3% |
| 30 Day | 6.5% | 3.4% | 3.3% |
| 90 Day | 17.8% | 12.7% | 8.9% |
| 1 Year | 66.4%63.6% | 46.9%43.1% | 56.6%53.9% |
| 3 Year | 107.1%95.5% | 33.5%23.5% | 64.4%53.6% |
| 5 Year | 240.2%203.8% | 80.6%57.9% | 120.4%95.7% |
Long-Term 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
2 days ago | Simply Wall St
Arthur J. Gallagher & Co.'s (NYSE:AJG) Stock Is Going Strong: Is the Market Following Fundamentals?2 weeks ago | Simply Wall St
Arthur J. Gallagher (NYSE:AJG) Has Gifted Shareholders With A Fantastic 222% Total Return On Their Investment1 month ago | Simply Wall St
Do Arthur J. Gallagher's (NYSE:AJG) Earnings Warrant Your Attention?Valuation
Is Arthur J. Gallagher undervalued compared to its fair value and its price relative to the market?
31.91x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AJG ($136.8) is trading above our estimate of fair value ($126.92)
Significantly Below Fair Value: AJG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AJG is poor value based on its PE Ratio (31.9x) compared to the US Insurance industry average (14.8x).
PE vs Market: AJG is poor value based on its PE Ratio (31.9x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: AJG is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: AJG is overvalued based on its PB Ratio (4.3x) compared to the US Insurance industry average (1.1x).
Future Growth
How is Arthur J. Gallagher forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AJG's forecast earnings growth (9.6% per year) is above the savings rate (2%).
Earnings vs Market: AJG's earnings (9.6% per year) are forecast to grow slower than the US market (18.1% per year).
High Growth Earnings: AJG's earnings are forecast to grow, but not significantly.
Revenue vs Market: AJG's revenue (6.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AJG's revenue (6.3% 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 (11%).
Past Performance
How has Arthur J. Gallagher performed over the past 5 years?
15.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AJG has high quality earnings.
Growing Profit Margin: AJG's current net profit margins (12.1%) are higher than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: AJG's earnings have grown by 15% per year over the past 5 years.
Accelerating Growth: AJG's earnings growth over the past year (22.4%) exceeds its 5-year average (15% per year).
Earnings vs Industry: AJG earnings growth over the past year (22.4%) exceeded the Insurance industry -9.8%.
Return on Equity
High ROE: AJG's Return on Equity (13.8%) is considered low.
Financial Health
How is Arthur J. Gallagher's financial position?
Financial Position Analysis
Short Term Liabilities: AJG's short term assets ($11.1B) exceed its short term liabilities ($10.1B).
Long Term Liabilities: AJG's short term assets ($11.1B) exceed its long term liabilities ($6.0B).
Debt to Equity History and Analysis
Debt Level: AJG's debt to equity ratio (74%) is considered high.
Reducing Debt: AJG's debt to equity ratio has increased from 66.6% to 74% over the past 5 years.
Debt Coverage: AJG's debt is well covered by operating cash flow (38%).
Interest Coverage: AJG's interest payments on its debt are well covered by EBIT (9.3x coverage).
Balance Sheet
Dividend
What is Arthur J. Gallagher current dividend yield, its reliability and sustainability?
1.40%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AJG's dividend (1.4%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: AJG's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (3.46%).
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 (42%), 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 (36% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.6yrs
Average management tenure
CEO
Pat Gallagher (68 yo)
26.25yrs
Tenure
US$11,177,461
Compensation
Mr. J. Patrick Gallagher, Jr. also known as Pat, serves as the Chief Executive Officer and President of Gallagher Koster (alternate name, Koster Insurance Agency, Inc.) and VEBA Service Group, LLC. Mr. Gal...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD11.18M) is about average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: Pat's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: AJG's management team is seasoned and experienced (12.6 years average tenure).
Board Members
Experienced Board: AJG's board of directors are considered experienced (7.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AJG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.
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$26.129b
- Shares outstanding: 195.19m
- Website: https://www.ajg.com
Number of Employees
Location
- Arthur J. Gallagher & Co.
- 2850 Golf Road
- Rolling Meadows
- Illinois
- 60008-4050
- United States
Listings
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, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 22:10 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.