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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.39
AJG's Cash to Debt is ranked lower than
55% of the 361 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.62 vs. AJG: 0.39 )
AJG' s 10-Year Cash to Debt Range
Min: 0.21   Max: No Debt
Current: 0.39

Equity to Asset 0.32
AJG's Equity to Asset is ranked higher than
66% of the 402 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.27 vs. AJG: 0.32 )
AJG' s 10-Year Equity to Asset Range
Min: 0.17   Max: 0.33
Current: 0.32

0.17
0.33
Interest Coverage 5.48
AJG's Interest Coverage is ranked higher than
57% of the 323 Companies
in the Global Insurance Brokers industry.

( Industry Median: 15.22 vs. AJG: 5.48 )
AJG' s 10-Year Interest Coverage Range
Min: 5.09   Max: 9999.99
Current: 5.48

5.09
9999.99
F-Score: 5
Z-Score: 1.30
M-Score: -1.96
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 7.54
AJG's Operating margin (%) is ranked higher than
57% of the 414 Companies
in the Global Insurance Brokers industry.

( Industry Median: 18.47 vs. AJG: 7.54 )
AJG' s 10-Year Operating margin (%) Range
Min: 8.63   Max: 18.39
Current: 7.54

8.63
18.39
Net-margin (%) 7.67
AJG's Net-margin (%) is ranked higher than
57% of the 414 Companies
in the Global Insurance Brokers industry.

( Industry Median: 14.58 vs. AJG: 7.67 )
AJG' s 10-Year Net-margin (%) Range
Min: 2.16   Max: 14.11
Current: 7.67

2.16
14.11
ROE (%) 13.18
AJG's ROE (%) is ranked higher than
84% of the 412 Companies
in the Global Insurance Brokers industry.

( Industry Median: 7.50 vs. AJG: 13.18 )
AJG' s 10-Year ROE (%) Range
Min: 4.03   Max: 39.48
Current: 13.18

4.03
39.48
ROA (%) 4.10
AJG's ROA (%) is ranked higher than
84% of the 415 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.84 vs. AJG: 4.10 )
AJG' s 10-Year ROA (%) Range
Min: 0.93   Max: 9.82
Current: 4.1

0.93
9.82
ROC (Joel Greenblatt) (%) 177.90
AJG's ROC (Joel Greenblatt) (%) is ranked higher than
78% of the 409 Companies
in the Global Insurance Brokers industry.

( Industry Median: 111.96 vs. AJG: 177.90 )
AJG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 70.03   Max: 410.62
Current: 177.9

70.03
410.62
Revenue Growth (%) 11.10
AJG's Revenue Growth (%) is ranked higher than
86% of the 345 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.80 vs. AJG: 11.10 )
AJG' s 10-Year Revenue Growth (%) Range
Min: 2   Max: 15.6
Current: 11.1

2
15.6
EBITDA Growth (%) 7.00
AJG's EBITDA Growth (%) is ranked higher than
78% of the 284 Companies
in the Global Insurance Brokers industry.

( Industry Median: -0.30 vs. AJG: 7.00 )
AJG' s 10-Year EBITDA Growth (%) Range
Min: -30.6   Max: 49.9
Current: 7

-30.6
49.9
EPS Growth (%) 9.70
AJG's EPS Growth (%) is ranked higher than
80% of the 292 Companies
in the Global Insurance Brokers industry.

( Industry Median: -0.80 vs. AJG: 9.70 )
AJG' s 10-Year EPS Growth (%) Range
Min: -33.7   Max: 42.2
Current: 9.7

-33.7
42.2
» AJG's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

AJG Guru Trades in Q3 2013

Paul Tudor Jones 9,300 sh (New)
Jim Simons 582,700 sh (+93.33%)
Steven Cohen 38,809 sh (+7.96%)
Westport Asset Management 403,424 sh (unchged)
Tweedy Browne Sold Out
Chuck Royce 1,201,520 sh (-13.56%)
John Keeley 338,780 sh (-31.69%)
» More
Q4 2013

AJG Guru Trades in Q4 2013

John Keeley 340,990 sh (+0.65%)
Westport Asset Management 383,424 sh (-4.96%)
Jim Simons 535,800 sh (-8.05%)
Chuck Royce 1,041,420 sh (-13.32%)
Paul Tudor Jones 4,387 sh (-52.83%)
Steven Cohen 14,550 sh (-62.51%)
» More
Q1 2014

AJG Guru Trades in Q1 2014

Paul Tudor Jones Sold Out
Steven Cohen Sold Out
John Keeley 338,452 sh (-0.74%)
Westport Asset Management 379,922 sh (-0.91%)
Chuck Royce 807,020 sh (-22.51%)
Jim Simons 163,401 sh (-69.5%)
» More
Q2 2014

AJG Guru Trades in Q2 2014

Paul Tudor Jones 18,790 sh (New)
John Keeley 365,507 sh (+7.99%)
Steven Cohen 95,900 sh (unchged)
Chuck Royce 807,020 sh (unchged)
Westport Asset Management 369,922 sh (-2.63%)
Jim Simons 4,500 sh (-97.25%)
» More
» Details

Insider Trades

Latest Guru Trades with AJG

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Keeley 2013-09-30 Reduce -31.69%0.14%$41.34 - $45.53 $ 45.84%338780
Tweedy Browne 2013-09-30 Sold Out 0.07%$41.34 - $45.53 $ 45.84%0
Meridian Funds 2013-03-31 Add 46.35%0.18%$34.65 - $41.31 $ 45.821%368800
Meridian Funds 2012-12-31 New Buy0.34%$34.47 - $36.89 $ 45.828%252000
Richard Pzena 2012-09-30 Sold Out 0.21%$34.67 - $37.29 $ 45.828%0
Tweedy Browne 2012-03-31 Reduce -83.01%0.37%$32.76 - $36.26 $ 45.844%63723
Tweedy Browne 2011-12-31 Add 52.67%0.15%$25.54 - $33.82 $ 45.850%375124
Charles Brandes 2011-12-31 Sold Out 0.05%$25.54 - $33.82 $ 45.850%0
Richard Pzena 2011-09-30 Reduce -38.48%0.11%$24.51 - $29.05 $ 45.867%676800
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 22.10
AJG's P/E(ttm) is ranked higher than
67% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 22.20 vs. AJG: 22.10 )
AJG' s 10-Year P/E(ttm) Range
Min: 13.52   Max: 135.19
Current: 22.1

13.52
135.19
P/B 2.21
AJG's P/B is ranked higher than
51% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.42 vs. AJG: 2.21 )
AJG' s 10-Year P/B Range
Min: 1.97   Max: 4.89
Current: 2.21

1.97
4.89
P/S 1.68
AJG's P/S is ranked higher than
78% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.31 vs. AJG: 1.68 )
AJG' s 10-Year P/S Range
Min: 0.89   Max: 2.56
Current: 1.68

0.89
2.56
PFCF 16.59
AJG's PFCF is ranked higher than
80% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9999.00 vs. AJG: 16.59 )
AJG' s 10-Year PFCF Range
Min: 8.79   Max: 50.41
Current: 16.59

8.79
50.41
EV-to-EBIT 30.62
AJG's EV-to-EBIT is ranked higher than
65% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 22.56 vs. AJG: 30.62 )
AJG' s 10-Year EV-to-EBIT Range
Min: 6.5   Max: 30.9
Current: 30.62

6.5
30.9
PEG 4.68
AJG's PEG is ranked higher than
89% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9999.00 vs. AJG: 4.68 )
AJG' s 10-Year PEG Range
Min: 0.67   Max: 99.76
Current: 4.68

0.67
99.76
Shiller P/E 27.69
AJG's Shiller P/E is ranked higher than
75% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 49.49 vs. AJG: 27.69 )
AJG' s 10-Year Shiller P/E Range
Min: 11.79   Max: 32.44
Current: 27.69

11.79
32.44
Current Ratio 1.15
AJG's Current Ratio is ranked higher than
51% of the 255 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.41 vs. AJG: 1.15 )
AJG' s 10-Year Current Ratio Range
Min: 0.88   Max: 1.18
Current: 1.15

0.88
1.18
Quick Ratio 1.15
AJG's Quick Ratio is ranked higher than
52% of the 255 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.41 vs. AJG: 1.15 )
AJG' s 10-Year Quick Ratio Range
Min: 0.88   Max: 1.18
Current: 1.15

0.88
1.18

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.12
AJG's Dividend Yield is ranked higher than
60% of the 324 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.75 vs. AJG: 3.12 )
AJG' s 10-Year Dividend Yield Range
Min: 2.14   Max: 8.16
Current: 3.12

2.14
8.16
Dividend Payout 0.68
AJG's Dividend Payout is ranked higher than
66% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.90 vs. AJG: 0.68 )
AJG' s 10-Year Dividend Payout Range
Min: 0.26   Max: 11.2
Current: 0.68

0.26
11.2
Dividend growth (3y) 3.00
AJG's Dividend growth (3y) is ranked higher than
76% of the 219 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.20 vs. AJG: 3.00 )
AJG' s 10-Year Dividend growth (3y) Range
Min: 1   Max: 24.4
Current: 3

1
24.4
Yield on cost (5-Year) 3.49
AJG's Yield on cost (5-Year) is ranked higher than
63% of the 327 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.88 vs. AJG: 3.49 )
AJG' s 10-Year Yield on cost (5-Year) Range
Min: 2.41   Max: 9.19
Current: 3.49

2.41
9.19
Share Buyback Rate -7.50
AJG's Share Buyback Rate is ranked higher than
53% of the 301 Companies
in the Global Insurance Brokers industry.

( Industry Median: -0.70 vs. AJG: -7.50 )
AJG' s 10-Year Share Buyback Rate Range
Min: 1.3   Max: -11.5
Current: -7.5

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.27
AJG's Price/DCF (Projected) is ranked higher than
75% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 4.10 vs. AJG: 1.27 )
AJG' s 10-Year Price/DCF (Projected) Range
Min: 0.78   Max: 3.13
Current: 1.27

0.78
3.13
Price/Median PS Value 0.95
AJG's Price/Median PS Value is ranked higher than
79% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.20 vs. AJG: 0.95 )
AJG' s 10-Year Price/Median PS Value Range
Min: 0.55   Max: 2.02
Current: 0.95

0.55
2.02
Price/Peter Lynch Fair Value 3.83
AJG's Price/Peter Lynch Fair Value is ranked higher than
85% of the 444 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9999.00 vs. AJG: 3.83 )
AJG' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.69   Max: 7.59
Current: 3.83

0.69
7.59
Earnings Yield (Greenblatt) 3.30
AJG's Earnings Yield (Greenblatt) is ranked lower than
53% of the 326 Companies
in the Global Insurance Brokers industry.

( Industry Median: 6.90 vs. AJG: 3.30 )
AJG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.2   Max: 15.4
Current: 3.3

3.2
15.4
Forward Rate of Return (Yacktman) 9.47
AJG's Forward Rate of Return (Yacktman) is ranked higher than
81% of the 335 Companies
in the Global Insurance Brokers industry.

( Industry Median: 4.81 vs. AJG: 9.47 )
AJG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -0.2   Max: 31.5
Current: 9.47

-0.2
31.5

Business Description

Industry: Brokers & Exchanges » Insurance Brokers
Compare:BRO, AOC, WSH, MMC, LPHI, EHTH » details
Traded in other countries:GAH.Germany
Arthur J. Gallagher & Co., was reincorporated as a Delaware corporation in 1972. The Company provides insurance brokerage and third-party claims settlement and administration services to entities in the U.S. and abroad. The Company has three reportable operating segments: brokerage, risk management and corporate. The brokerage segment is mainly comprised of retail and wholesale insurance brokerage operations. The brokerage segment generates revenues through commissions paid by insurance underwriters and through fees charged to its clients. The Company's brokers, agents and administrators act as intermediaries between insurers and their customers and it does not assume underwriting risks. The risk management segment provides contract claim settlement and administration services for enterprises that choose to self-insure some or all of their property/casualty coverages and for insurance companies that choose to outsource some or all of their property/casualty claims departments. These operations also provide claims management, loss control consulting and insurance property appraisal services. The corporate segment manages the Company's clean energy and other investments. This segment also holds all of the Company's corporate debt. Allocations of investment income and certain expenses are based on reasonable assumptions and estimates mainly using revenue, headcount and other information. The Company's competitors include: Marsh & McLennan Companies, Inc., Aon Corporation, Willis Group Holdings, Ltd. and Wells Fargo Insurance Services, Inc., Crump Group, Inc., CRC Insurance Services, Inc., AmWINS Group, Inc., Swett & Crawford Group, Inc. The Company's wholesale brokerage operations compete with large wholesalers such as CRC Insurance Services, Inc., RT Specialty, AmWINS Group, Inc., Swett & Crawford Group, Inc., as well as a vast number of local and regional wholesalers. The Company also competes with certain insurance companies that write insurance directly for their customers.
» More Articles for AJG

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