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.
Established dividend payer with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AJG exceeded the US Insurance industry which returned -22% over the past year.
Return vs Market: AJG exceeded the US Market which returned 4.8% over the past year.
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 weeks ago | Simply Wall StDo Institutions Own Shares In Arthur J. Gallagher & Co. (NYSE:AJG)?
1 month ago | Simply Wall StDon't Ignore The Fact That This Insider Just Sold Some Shares In Arthur J. Gallagher & Co. (NYSE:AJG)
1 month ago | Simply Wall StShareholders Of Arthur J. Gallagher (NYSE:AJG) Must Be Happy With Their 99% Return
Is Arthur J. Gallagher undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AJG ($97.34) is trading above our estimate of fair value ($79.43)
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 (26.7x) compared to the Insurance industry average (13.2x).
PE vs Market: AJG is poor value based on its PE Ratio (26.7x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: AJG is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: AJG is overvalued based on its PB Ratio (3.7x) compared to the US Insurance industry average (0.9x).
How is Arthur J. Gallagher forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AJG's forecast earnings growth (11.2% per year) is above the savings rate (2.2%).
Earnings vs Market: AJG's earnings (11.2% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: AJG's earnings are forecast to grow, but not significantly.
Revenue vs Market: AJG's revenue (6.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AJG's revenue (6.1% 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 (12.1%).
How has Arthur J. Gallagher performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AJG has high quality earnings.
Growing Profit Margin: AJG's current net profit margins (10%) are lower than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: AJG's earnings have grown by 17% per year over the past 5 years.
Accelerating Growth: AJG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AJG had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the Insurance industry average (-1.9%).
Return on Equity
High ROE: AJG's Return on Equity (14.2%) is considered low.
How is Arthur J. Gallagher's financial position?
Financial Position Analysis
Short Term Liabilities: AJG's short term assets ($10.5B) exceed its short term liabilities ($9.8B).
Long Term Liabilities: AJG's short term assets ($10.5B) exceed its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: AJG's debt to equity ratio (97.6%) is considered high.
Reducing Debt: AJG's debt to equity ratio has increased from 72.3% to 97.6% over the past 5 years.
Debt Coverage: AJG's debt is well covered by operating cash flow (26.8%).
Interest Coverage: AJG's interest payments on its debt are well covered by EBIT (7.6x coverage).
What is Arthur J. Gallagher current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AJG's dividend (1.85%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: AJG's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (4.51%).
Stability and Growth of Payments
Stable Dividend: AJG's dividends per share have been stable in the past 10 years.
Growing Dividend: AJG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.8%), AJG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AJG's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pat Gallagher (68yo)
Mr. J. Patrick Gallagher, Jr. also known as Pat, serves as the Chief Executive Officer and President of Gallagher Koster (alternate name, Koster Insurance Agency, Inc.) and VEBA Service Group, LLC. Mr. Gal ...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD8.96M) is about average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.
|Corporate VP & Chief Financial Officer||17.25yrs||US$4.42m||0.027% $4.9m|
|Corporate VP||13.5yrs||US$3.29m||0.011% $2.0m|
|Corporate VP and President of Global Property & Casualty Brokerage||3.5yrs||US$4.32m||0.23% $42.3m|
|Corporate VP & President of Risk Management Operation||10.5yrs||US$3.21m||0.019% $3.4m|
|Vice President||no data||no data||no data|
|Chief Accounting Officer & Controller||19.5yrs||no data||0.018% $3.3m|
|Global Chief Information Officer and Corporate Vice President||5.17yrs||no data||no data|
|Vice President of Investor Relations||4.5yrs||no data||no data|
|Vice President of Corporate Communications||no data||no data||no data|
Experienced Management: AJG's management team is seasoned and experienced (12 years average tenure).
|Independent Director||7yrs||US$276.34k||0.010% $1.9m|
|Independent Director||5.67yrs||US$256.34k||0.0049% $904.4k|
|Independent Lead Director||4.5yrs||US$286.34k||0.025% $4.7m|
|Independent Director||14.75yrs||US$271.34k||0.017% $3.1m|
|Independent Director||4.5yrs||US$256.34k||0.0054% $989.3k|
|Independent Director||13.75yrs||US$281.34k||0.022% $4.1m|
|Independent Director||12.5yrs||US$256.34k||0.018% $3.3m|
|Independent Director||11.17yrs||US$256.34k||0.0047% $876.7k|
|Chairman of Technical Advisory Board||4.75yrs||no data||no data|
Experienced Board: AJG's board of directors are considered experienced (9.1 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.
Arthur J. Gallagher & Co.'s company bio, employee growth, exchange listings and data sources
- Name: Arthur J. Gallagher & Co.
- Ticker: AJG
- Exchange: NYSE
- Founded: 1927
- Industry: Insurance Brokers
- Sector: Insurance
- Market Cap: US$18.458b
- Shares outstanding: 189.62m
- Website: https://www.ajg.com
Number of Employees
- Arthur J. Gallagher & Co.
- 2850 Golf Road
- Rolling Meadows
- United States
|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|
|A1JG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM||BR||BRL||Jan 2020|
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||2020/07/02 23:51|
|End of Day Share Price||2020/07/02 00:00|
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.