Seek Returns

Arthur J. Gallagher (AJG) Stock Analysis

This is a peer-relative look at Arthur J. Gallagher (AJG): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Insurance peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Arthur J. Gallagher (AJG)
Profile ItemAJG
NameArthur J. Gallagher & Co.
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupInsurance
GICS IndustryInsurance
GICS Sub-IndustryInsurance Brokers
Market Capitalization68.71 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 20, 1984
Security TypeCommon Stock

Price Performance

Cumulative Growth

AJG
GSPC
Loading price history…
Arthur J. Gallagher (AJG) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Arthur J. Gallagher (AJG) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Arthur J. Gallagher (AJG) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
Total Return (1Y)-4.00%14.94%
Total Return (3Y, Annualized)6.61%18.12%
Total Return (5Y, Annualized)11.31%9.96%

Risk Profile

Drawdown History

AJG
GSPC
Loading price history…
Arthur J. Gallagher (AJG) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Arthur J. Gallagher (AJG) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
Volatility (1Y, Annualized)32.17%28.33%
Beta (5Y)0.480.52
Max Drawdown (5Y)-44.40%-37.87%

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. AJG is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
Sharpe Ratio (1Y)-0.260.42
Sortino Ratio (1Y)-0.370.62

Profitability

ROE (TTM)

Arthur J. Gallagher (AJG) posts ROE of 6.72%, in the lower peer quartile. Shareholders’ equity is not producing as much profit as it does at most peers, so margins, asset turns, or balance-sheet structure deserve a closer look.

AJG

Insurance industry group

6.72%

Group distribution
Max
38.99%
Q3
22.12%
Median
14.68%
Q1
10.07%
AJG
6.72%
Min
-3.97%
Largest peers
AON
44.70%
PGR
33.24%
TRV
27.50%
MRSH
27.24%
CB
14.25%
MFC
13.31%
AJG
6.72%
Loading chart…
Where Arthur J. Gallagher (AJG) stands on ROE within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Arthur J. Gallagher (AJG) keeps 10.38% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

AJG

Insurance industry group

10.38%

Group distribution
Max
37.68%
Q3
18.79%
Median
11.13%
AJG
10.38%
Q1
5.69%
Min
-10.79%
Largest peers
AON
22.27%
MFC
20.31%
CB
18.12%
TRV
17.03%
MRSH
14.20%
PGR
12.67%
AJG
10.38%
Loading chart…
Where Arthur J. Gallagher (AJG) stands on net margin within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

operating margin is set aside for Arthur J. Gallagher (AJG) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.

Profitability Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
ROE (TTM)6.72%14.68%
ROA (TTM)2.32%3.09%
Net Margin (TTM)10.38%11.13%
Operating Margin (TTM)----
Gross Margin (TTM)----

Growth

Revenue Growth

Arthur J. Gallagher (AJG) grew revenue 20.66%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Loading chart…
Arthur J. Gallagher (AJG): Revenue Growth across different time periods, set against Insurance industry-group medians.

EPS Growth

Arthur J. Gallagher (AJG) grew earnings per share -11.69%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.

Loading chart…
Arthur J. Gallagher (AJG): EPS Growth across different time periods, set against Insurance industry-group medians.

Growth Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
Revenue Growth (YoY)20.66%8.02%
Revenue Growth (3Y CAGR)17.70%11.40%
EPS Growth (YoY)-11.69%23.05%
EPS Growth (3Y CAGR)3.41%18.46%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Arthur J. Gallagher (AJG) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Arthur J. Gallagher (AJG) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Arthur J. Gallagher (AJG) has dividend yield of 1.00%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

AJG

Insurance industry group

1.00%

Group distribution
Max
5.12%
Q3
2.25%
Median
1.14%
AJG
1.00%
Q1
0.00%
Min
0.00%
Largest peers
MFC
4.06%
MRSH
1.90%
TRV
1.16%
CB
1.09%
AJG
1.00%
AON
1.00%
PGR
0.04%
Loading chart…
Where Arthur J. Gallagher (AJG) stands on dividend yield within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Arthur J. Gallagher (AJG) has payout ratio of 44.78%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

AJG

Insurance industry group

44.78%

Group distribution
Max
78.97%
AJG
44.78%
Q3
35.81%
Median
16.14%
Q1
0.00%
Min
0.00%
Largest peers
PGR
69.71%
MFC
50.14%
AJG
44.78%
MRSH
44.14%
AON
16.84%
CB
13.92%
TRV
12.36%
Loading chart…
Where Arthur J. Gallagher (AJG) stands on payout ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
Dividend Yield (TTM)1.00%1.14%
Dividend Payout Ratio (TTM)44.78%16.14%

Valuation

P/E Ratio (TTM)

Arthur J. Gallagher (AJG) trades at P/E ratio of 44.45, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.

AJG

Insurance industry group

44.45

Group distribution
AJG
44.45
Max
30.74
Q3
18.50
Median
11.83
Q1
8.70
Min
2.58
Largest peers
AJG
44.45
MRSH
23.62
AON
16.73
MFC
16.58
CB
12.45
PGR
11.49
TRV
10.47
Loading chart…
Where Arthur J. Gallagher (AJG) stands on P/E ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Arthur J. Gallagher (AJG) trades at 4.55 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

AJG

Insurance industry group

4.55

Group distribution
AJG
4.55
Max
4.55
Q3
2.41
Median
1.30
Q1
0.87
Min
0.07
Largest peers
AJG
4.55
AON
3.66
MRSH
3.30
MFC
2.21
CB
2.21
TRV
1.67
PGR
1.44
Loading chart…
Where Arthur J. Gallagher (AJG) stands on P/S ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Arthur J. Gallagher (AJG) trades at 2.90 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

AJG

Insurance industry group

2.90

Group distribution
Max
5.37
Q3
2.90
AJG
2.90
Median
1.86
Q1
1.22
Min
0.38
Largest peers
AON
6.70
MRSH
6.40
PGR
3.83
AJG
2.90
TRV
2.81
MFC
2.04
CB
1.86
Loading chart…
Where Arthur J. Gallagher (AJG) stands on P/B ratio within its Insurance peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Arthur J. Gallagher (AJG) metric values compared with Insurance industry-group medians
MetricCurrent stock: AJGIndustry group median
P/E Ratio (TTM)44.4511.83
P/S Ratio (TTM)4.551.30
P/B Ratio (MRQ)2.901.86
Free Cash Flow Yield (TTM)----