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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 : 7/10

vs
industry
vs
history
Cash to Debt 0.12
AJG's Cash to Debt is ranked lower than
97% of the 544 Companies
in the Global Insurance Brokers industry.

( Industry Median: 9999.00 vs. AJG: 0.12 )
Ranked among companies with meaningful Cash to Debt only.
AJG' s 10-Year Cash to Debt Range
Min: 0.12  Med: 1.44 Max: No Debt
Current: 0.12
Equity to Asset 0.32
AJG's Equity to Asset is ranked lower than
58% of the 413 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.42 vs. AJG: 0.32 )
Ranked among companies with meaningful Equity to Asset only.
AJG' s 10-Year Equity to Asset Range
Min: 0.17  Med: 0.26 Max: 0.33
Current: 0.32
0.17
0.33
Interest Coverage 3.00
AJG's Interest Coverage is ranked lower than
85% of the 440 Companies
in the Global Insurance Brokers industry.

( Industry Median: 10000.00 vs. AJG: 3.00 )
Ranked among companies with meaningful Interest Coverage only.
AJG' s 10-Year Interest Coverage Range
Min: 3  Med: 16.84 Max: 9999.99
Current: 3
3
9999.99
F-Score: 5
Z-Score: 1.48
M-Score: -2.07
WACC vs ROIC
9.32%
5.97%
WACC
ROIC
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 (%) 5.10
AJG's Operating margin (%) is ranked lower than
65% of the 570 Companies
in the Global Insurance Brokers industry.

( Industry Median: 16.04 vs. AJG: 5.10 )
Ranked among companies with meaningful Operating margin (%) only.
AJG' s 10-Year Operating margin (%) Range
Min: 5.78  Med: 11.21 Max: 18.39
Current: 5.1
5.78
18.39
Net-margin (%) 5.58
AJG's Net-margin (%) is ranked lower than
64% of the 576 Companies
in the Global Insurance Brokers industry.

( Industry Median: 14.63 vs. AJG: 5.58 )
Ranked among companies with meaningful Net-margin (%) only.
AJG' s 10-Year Net-margin (%) Range
Min: 2.16  Med: 9.59 Max: 14.11
Current: 5.58
2.16
14.11
ROE (%) 9.19
AJG's ROE (%) is ranked higher than
58% of the 587 Companies
in the Global Insurance Brokers industry.

( Industry Median: 6.94 vs. AJG: 9.19 )
Ranked among companies with meaningful ROE (%) only.
AJG' s 10-Year ROE (%) Range
Min: 4.03  Med: 17.57 Max: 38.46
Current: 9.19
4.03
38.46
ROA (%) 2.93
AJG's ROA (%) is ranked higher than
56% of the 596 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.10 vs. AJG: 2.93 )
Ranked among companies with meaningful ROA (%) only.
AJG' s 10-Year ROA (%) Range
Min: 0.93  Med: 5.09 Max: 9.82
Current: 2.93
0.93
9.82
ROC (Joel Greenblatt) (%) 128.58
AJG's ROC (Joel Greenblatt) (%) is ranked higher than
67% of the 578 Companies
in the Global Insurance Brokers industry.

( Industry Median: 40.40 vs. AJG: 128.58 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
AJG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 11.03  Med: 226.28 Max: 352.68
Current: 128.58
11.03
352.68
Revenue Growth (3Y)(%) 16.50
AJG's Revenue Growth (3Y)(%) is ranked higher than
76% of the 454 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.80 vs. AJG: 16.50 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
AJG' s 10-Year Revenue Growth (3Y)(%) Range
Min: 2  Med: 7.10 Max: 16.5
Current: 16.5
2
16.5
EBITDA Growth (3Y)(%) 7.30
AJG's EBITDA Growth (3Y)(%) is ranked higher than
58% of the 320 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.10 vs. AJG: 7.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
AJG' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -30.6  Med: 8.20 Max: 49.9
Current: 7.3
-30.6
49.9
EPS Growth (3Y)(%) 15.50
AJG's EPS Growth (3Y)(%) is ranked higher than
64% of the 314 Companies
in the Global Insurance Brokers industry.

( Industry Median: 4.40 vs. AJG: 15.50 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
AJG' s 10-Year EPS Growth (3Y)(%) Range
Min: -33.7  Med: 9.10 Max: 42.2
Current: 15.5
-33.7
42.2
» AJG's 10-Y Financials

Financials


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

» Details

Guru Trades

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
Q3 2014

AJG Guru Trades in Q3 2014

Jim Simons 116,800 sh (+2495.56%)
John Keeley 365,667 sh (+0.04%)
Westport Asset Management 369,922 sh (unchged)
Chuck Royce 688,120 sh (-14.73%)
Paul Tudor Jones 15,146 sh (-19.39%)
Steven Cohen 63,700 sh (-33.58%)
» More
Q4 2014

AJG Guru Trades in Q4 2014

Jim Simons 700,000 sh (+499.32%)
Steven Cohen 118,000 sh (+85.24%)
Chuck Royce 688,120 sh (unchged)
Paul Tudor Jones Sold Out
John Keeley 358,987 sh (-1.83%)
Westport Asset Management 220,072 sh (-40.51%)
» More
Q1 2015

AJG Guru Trades in Q1 2015

Steven Cohen Sold Out
John Keeley 355,867 sh (-0.87%)
Westport Asset Management 213,972 sh (-2.77%)
Chuck Royce 620,600 sh (-9.81%)
Jim Simons 535,000 sh (-23.57%)
» 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%)

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» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 27.67
AJG's P/E(ttm) is ranked lower than
69% of the 438 Companies
in the Global Insurance Brokers industry.

( Industry Median: 19.10 vs. AJG: 27.67 )
Ranked among companies with meaningful P/E(ttm) only.
AJG' s 10-Year P/E(ttm) Range
Min: 13.52  Med: 21.97 Max: 135.19
Current: 27.67
13.52
135.19
Forward P/E 16.26
AJG's Forward P/E is ranked lower than
52% of the 124 Companies
in the Global Insurance Brokers industry.

( Industry Median: 15.43 vs. AJG: 16.26 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 27.80
AJG's PE(NRI) is ranked lower than
69% of the 440 Companies
in the Global Insurance Brokers industry.

( Industry Median: 18.90 vs. AJG: 27.80 )
Ranked among companies with meaningful PE(NRI) only.
AJG' s 10-Year PE(NRI) Range
Min: 12.06  Med: 21.48 Max: 88.25
Current: 27.8
12.06
88.25
P/B 2.49
AJG's P/B is ranked lower than
71% of the 548 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.19 vs. AJG: 2.49 )
Ranked among companies with meaningful P/B only.
AJG' s 10-Year P/B Range
Min: 1.97  Med: 3.00 Max: 4.2
Current: 2.49
1.97
4.2
P/S 1.57
AJG's P/S is ranked higher than
72% of the 550 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.75 vs. AJG: 1.57 )
Ranked among companies with meaningful P/S only.
AJG' s 10-Year P/S Range
Min: 0.89  Med: 1.73 Max: 2.29
Current: 1.57
0.89
2.29
PFCF 22.08
AJG's PFCF is ranked lower than
71% of the 188 Companies
in the Global Insurance Brokers industry.

( Industry Median: 12.41 vs. AJG: 22.08 )
Ranked among companies with meaningful PFCF only.
AJG' s 10-Year PFCF Range
Min: 8.79  Med: 16.32 Max: 50.41
Current: 22.08
8.79
50.41
POCF 17.92
AJG's POCF is ranked lower than
65% of the 233 Companies
in the Global Insurance Brokers industry.

( Industry Median: 11.85 vs. AJG: 17.92 )
Ranked among companies with meaningful POCF only.
AJG' s 10-Year POCF Range
Min: 7.76  Med: 13.89 Max: 34
Current: 17.92
7.76
34
EV-to-EBIT 29.20
AJG's EV-to-EBIT is ranked lower than
71% of the 423 Companies
in the Global Insurance Brokers industry.

( Industry Median: 15.83 vs. AJG: 29.20 )
Ranked among companies with meaningful EV-to-EBIT only.
AJG' s 10-Year EV-to-EBIT Range
Min: 6.5  Med: 17.25 Max: 41
Current: 29.2
6.5
41
PEG 5.45
AJG's PEG is ranked lower than
88% of the 95 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.39 vs. AJG: 5.45 )
Ranked among companies with meaningful PEG only.
AJG' s 10-Year PEG Range
Min: 0.67  Med: 3.75 Max: 58.48
Current: 5.45
0.67
58.48
Shiller P/E 28.20
AJG's Shiller P/E is ranked lower than
64% of the 206 Companies
in the Global Insurance Brokers industry.

( Industry Median: 23.33 vs. AJG: 28.20 )
Ranked among companies with meaningful Shiller P/E only.
AJG' s 10-Year Shiller P/E Range
Min: 11.7  Med: 21.17 Max: 32.44
Current: 28.2
11.7
32.44
Current Ratio 1.05
AJG's Current Ratio is ranked lower than
83% of the 298 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.86 vs. AJG: 1.05 )
Ranked among companies with meaningful Current Ratio only.
AJG' s 10-Year Current Ratio Range
Min: 0.88  Med: 1.03 Max: 1.18
Current: 1.05
0.88
1.18
Quick Ratio 1.05
AJG's Quick Ratio is ranked lower than
81% of the 298 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.76 vs. AJG: 1.05 )
Ranked among companies with meaningful Quick Ratio only.
AJG' s 10-Year Quick Ratio Range
Min: 0.88  Med: 1.03 Max: 1.18
Current: 1.05
0.88
1.18
Days Sales Outstanding 130.42
AJG's Days Sales Outstanding is ranked lower than
66% of the 454 Companies
in the Global Insurance Brokers industry.

( Industry Median: 54.93 vs. AJG: 130.42 )
Ranked among companies with meaningful Days Sales Outstanding only.
AJG' s 10-Year Days Sales Outstanding Range
Min: 115.38  Med: 187.56 Max: 459.23
Current: 130.42
115.38
459.23

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.07
AJG's Dividend Yield is ranked higher than
57% of the 493 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.18 vs. AJG: 3.07 )
Ranked among companies with meaningful Dividend Yield only.
AJG' s 10-Year Dividend Yield Range
Min: 2.76  Med: 4.11 Max: 8.16
Current: 3.07
2.76
8.16
Dividend Payout 0.85
AJG's Dividend Payout is ranked lower than
69% of the 305 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.40 vs. AJG: 0.85 )
Ranked among companies with meaningful Dividend Payout only.
AJG' s 10-Year Dividend Payout Range
Min: 0.26  Med: 0.59 Max: 11.2
Current: 0.85
0.26
11.2
Dividend growth (3y) 2.90
AJG's Dividend growth (3y) is ranked higher than
58% of the 193 Companies
in the Global Insurance Brokers industry.

( Industry Median: -5.00 vs. AJG: 2.90 )
Ranked among companies with meaningful Dividend growth (3y) only.
AJG' s 10-Year Dividend growth (3y) Range
Min: 1  Med: 11.30 Max: 24.4
Current: 2.9
1
24.4
Yield on cost (5-Year) 3.49
AJG's Yield on cost (5-Year) is ranked higher than
57% of the 489 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.63 vs. AJG: 3.49 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
AJG' s 10-Year Yield on cost (5-Year) Range
Min: 3.14  Med: 4.67 Max: 9.28
Current: 3.49
3.14
9.28
Share Buyback Rate -11.10
AJG's Share Buyback Rate is ranked lower than
75% of the 324 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.70 vs. AJG: -11.10 )
Ranked among companies with meaningful Share Buyback Rate only.
AJG' s 10-Year Share Buyback Rate Range
Min: 1.3  Med: -2.70 Max: -11.5
Current: -11.1

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 1.31
AJG's Price/Projected FCF is ranked higher than
53% of the 189 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.35 vs. AJG: 1.31 )
Ranked among companies with meaningful Price/Projected FCF only.
AJG' s 10-Year Price/Projected FCF Range
Min: 0.78  Med: 1.29 Max: 3.13
Current: 1.31
0.78
3.13
Price/DCF (Earnings Based) 2.38
AJG's Price/DCF (Earnings Based) is ranked lower than
80% of the 15 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.82 vs. AJG: 2.38 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 0.90
AJG's Price/Median PS Value is ranked higher than
66% of the 497 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.06 vs. AJG: 0.90 )
Ranked among companies with meaningful Price/Median PS Value only.
AJG' s 10-Year Price/Median PS Value Range
Min: 0.56  Med: 1.01 Max: 2.07
Current: 0.9
0.56
2.07
Price/Peter Lynch Fair Value 3.76
AJG's Price/Peter Lynch Fair Value is ranked lower than
94% of the 66 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.12 vs. AJG: 3.76 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
AJG' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.69  Med: 1.56 Max: 7.59
Current: 3.76
0.69
7.59
Earnings Yield (Greenblatt) (%) 3.42
AJG's Earnings Yield (Greenblatt) (%) is ranked lower than
53% of the 561 Companies
in the Global Insurance Brokers industry.

( Industry Median: 4.30 vs. AJG: 3.42 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
AJG' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 2.4  Med: 5.80 Max: 15.4
Current: 3.42
2.4
15.4
Forward Rate of Return (Yacktman) (%) 11.95
AJG's Forward Rate of Return (Yacktman) (%) is ranked higher than
64% of the 180 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.88 vs. AJG: 11.95 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
AJG' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 0.2  Med: 10.40 Max: 31.8
Current: 11.95
0.2
31.8

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., 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 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. The Company's activities are subject to regulatory supervision, including insurance industry regulation, Federal and state employment regulation and regulations promulgated by regulatory bodies such as the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) and Internal Revenue Service (IRS) in the U.S., and the Financial Services Authority (FSA) in the U.K.
» More Articles for AJG

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More From Other Websites
Edited Transcript of AJG earnings conference call or presentation 29-Jul-15 1:00pm GMT Jul 29 2015
Arthur J. Gallagher Q2 Earnings Miss Estimates, Grow Y/Y - Analyst Blog Jul 29 2015
Arthur J. Gallagher & Co. Earnings Call scheduled for 9:00 am ET today Jul 29 2015
Arthur J. Gallagher misses Street 2Q forecasts Jul 28 2015
Arthur J. Gallagher misses Street 2Q forecasts Jul 28 2015
GALLAGHER ARTHUR J & CO Files SEC form 8-K, Results of Operations and Financial Condition, Financial... Jul 28 2015
4:33 pm Arthur J. Gallagher reports EPS in-line, revs in-line Jul 28 2015
Q2 2015 Earnings Release Jul 28 2015
Arthur J. Gallagher & Co. Announces Second Quarter 2015 Financial Results Jul 28 2015
Q2 2015 Arthur J. Gallagher & Co. Earnings Release - After Market Close Jul 28 2015
Arthur J. Gallagher (AJG) Earnings Season: What's in Store? - Analyst Blog Jul 24 2015
Arthur J. Gallagher & Co. Announces Regular Third Quarter Dividend Jul 23 2015
Arthur J. Gallagher & Co. Announces Regular Third Quarter Dividend Jul 23 2015
Arthur J. Gallagher Buys 65% Stake in Columbian Reinsurer - Analyst Blog Jul 21 2015
Arthur J. Gallagher & Co. Acquires Equity Interest In Colombian Broker Jul 20 2015
Arthur J. Gallagher & Co. Acquires Equity Interest In Colombian Broker Jul 20 2015
Arthur J. Gallagher & Co. Announces Second Quarter Earnings Release And Conference Call Dates Jul 01 2015
Arthur J. Gallagher & Co. Announces Second Quarter Earnings Release And Conference Call Dates Jul 01 2015
GALLAGHER ARTHUR J & CO Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and... Jun 30 2015
Arthur J. Gallagher & Co. Updates At-The-Market Equity Program Activity And Other Share Information Jun 30 2015

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