NYSE:AJG (USA) Also trade in: Germany UK

Arthur J. Gallagher & Co

$ 84.15 -0.64 (-0.75%)
Volume: 769,724 Avg Vol (1m): 948,608
Market Cap $: 15.59 Bil Enterprise Value $: 19.31 Bil
P/E (TTM): 22.75 P/B: 3.24
Earnings Power Value 15.1
Net Current Asset Value -21.66
Tangible Book -9.35
Projected FCF 49.52
Median P/S Value 62.36
Graham Number 0
Peter Lynch Value 26.57
DCF (FCF Based) 55
DCF (Earnings Based) 53.87
1Y (-%)

Financial Strength : 5/10

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.
Current vs industry vs history
Cash-to-Debt 0.19
Cash-To-Debt ranked lower than
89.00% of 682 companies
in the Insurance Brokers industry.
Industry Max: 49173.54, Med: 5.11, Min: 0.01
AJG: 0.19
Ranked among companies with meaningful Cash-To-Debt only.
Cash-To-Debt range over the past 10 years
Min: 0.12, Med: 1.35, Max: 10000
Current: 0.19
0.12
10000
Equity-to-Asset 0.26
Equity-to-Asset ranked lower than
72.11% of 631 companies
in the Insurance Brokers industry.
Industry Max: 1, Med: 0.54, Min: -107.72
AJG: 0.26
Ranked among companies with meaningful Equity-to-Asset only.
Equity-to-Asset range over the past 10 years
Min: 0.17, Med: 0.26, Max: 0.35
Current: 0.26
0.17
0.35
Debt-to-Equity 0.93
Debt-to-Equity ranked lower than
65.91% of 399 companies
in the Insurance Brokers industry.
Industry Max: 21.92, Med: 0.41, Min: 0.01
AJG: 0.93
Ranked among companies with meaningful Debt-to-Equity only.
Debt-to-Equity range over the past 10 years
Min: 0.04, Med: 0.48, Max: 0.93
Current: 0.93
0.04
0.93
Debt-to-EBITDA 3.97
Debt-to-EBITDA ranked lower than
55.61% of 383 companies
in the Insurance Brokers industry.
Industry Max: 1134.33, Med: 2.68, Min: 0.01
AJG: 3.97
Ranked among companies with meaningful Debt-to-EBITDA only.
Debt-to-EBITDA range over the past 10 years
Min: 1.66, Med: 3.08, Max: 3.97
Current: 3.97
1.66
3.97
Interest Coverage 4.44
Interest Coverage ranked lower than
78.31% of 498 companies
in the Insurance Brokers industry.
Industry Max: 86375.5, Med: 222.1, Min: 0.04
AJG: 4.44
Ranked among companies with meaningful Interest Coverage only.
Interest Coverage range over the past 10 years
Min: 4.15, Med: 5.24, Max: 8.55
Current: 4.44
4.15
8.55
Piotroski F-Score 5
0
1
2
3
4
5
6
7
8
9
Altman Z-Score 1.39
DISTRESS
GREY
SAFE
WACC vs ROIC %
ROIC 11.36%
WACC 6.13%

Profitability & Growth : 7/10

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
Current vs industry vs history
Operating Margin % 9.31
Operating Margin ranked lower than
52.37% of 527 companies
in the Insurance Brokers industry.
Industry Max: 3936.36, Med: 10.95, Min: -96700
AJG: 9.31
Ranked among companies with meaningful Operating Margin only.
Operating Margin range over the past 10 years
Min: 8.11, Med: 9.92, Max: 14.09
Current: 9.31
8.11
14.09
Net Margin % 9.87
Net Margin ranked lower than
58.02% of 667 companies
in the Insurance Brokers industry.
Industry Max: 4987.16, Med: 13.87, Min: -1120000
AJG: 9.87
Ranked among companies with meaningful Net Margin only.
Net Margin range over the past 10 years
Min: 6.56, Med: 7.57, Max: 9.87
Current: 9.87
6.56
9.87
ROE % 15.16
ROE ranked higher than
74.66% of 671 companies
in the Insurance Brokers industry.
Industry Max: 462.95, Med: 6.44, Min: -994.16
AJG: 15.16
Ranked among companies with meaningful ROE only.
ROE range over the past 10 years
Min: 10.39, Med: 12.87, Max: 17.41
Current: 15.16
10.39
17.41
ROA % 4.16
ROA ranked higher than
66.81% of 687 companies
in the Insurance Brokers industry.
Industry Max: 654.36, Med: 2.01, Min: -6145.67
AJG: 4.16
Ranked among companies with meaningful ROA only.
ROA range over the past 10 years
Min: 3.41, Med: 3.8, Max: 5.09
Current: 4.16
3.41
5.09
ROC (Joel Greenblatt) % 162.85
ROC (Joel Greenblatt) ranked higher than
75.05% of 525 companies
in the Insurance Brokers industry.
Industry Max: 1154657.41, Med: 26.76, Min: -206551.72
AJG: 162.85
Ranked among companies with meaningful ROC (Joel Greenblatt) only.
ROC (Joel Greenblatt) range over the past 10 years
Min: 122.54, Med: 235.27, Max: 303.64
Current: 162.85
122.54
303.64
3-Year Total Revenue Growth Rate 8.70
3-Year Revenue Growth Rate ranked lower than
52.22% of 609 companies
in the Insurance Brokers industry.
Industry Max: 939.2, Med: 4.5, Min: -100
AJG: 6.2
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
3-Year Revenue Growth Rate range over the past 10 years
Min: 1.6, Med: 7.8, Max: 16.5
Current: 6.2
1.6
16.5
3-Year Total EBITDA Growth Rate 12.40
3-Year EBITDA Growth Rate ranked lower than
50.47% of 422 companies
in the Insurance Brokers industry.
Industry Max: 1240.5, Med: 6.8, Min: -248.6
AJG: 9.7
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
3-Year EBITDA Growth Rate range over the past 10 years
Min: -5.2, Med: 8.3, Max: 24.9
Current: 9.7
-5.2
24.9
3-Year EPS w/o NRI Growth Rate 18.20
3-Year EPS w/o NRI Growth Rate ranked higher than
54.60% of 500 companies
in the Insurance Brokers industry.
Industry Max: 462.5, Med: 4.6, Min: -192.4
AJG: 18.2
Ranked among companies with meaningful 3-Year EPS w/o NRI Growth Rate only.
3-Year EPS w/o NRI Growth Rate range over the past 10 years
Min: -33.9, Med: 9.7, Max: 42.5
Current: 18.2
-33.9
42.5

» AJG's 30-Y Financials

Financials (Next Earnings Date: 2019-07-26)

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Business Description

Industry Brokers & Exchanges » Insurance Brokers    NAICS : 524210    SIC : 6411
Compare MIL:PST NAS:ERIE NYSE:BRO NAS:WLTW ASX:SDF NAS:FANH NAS:EHTH NAS:CRVL XPAR:APR LSE:SBRE XLJU:ZVTG ASX:AUB NYSE:CRD.B ASX:PSI BSP:WIZS3 BKK:TQM NAS:KINS XTER:VVV3 CAS:AFM MIL:ASSI
Traded in other countries GAH.Germany 0ITL.UK
Address 2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050
Arthur J. Gallagher & Co provides insurance brokerage and consulting services to middle-market entities around the world. The majority of the company's revenue comes from its brokerage segment, where it negotiates and places its customers with insurance companies that provide, among other types, property/casualty and health insurance. The company's primary source of revenue in the brokerage segment is commissions from the insurance companies. The company also generates significant revenue in its corporate segment, which includes clean energy investment and other investment income. The company generates most of its revenue in the United States, with the remaining revenue coming primarily from Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom.

Ratios

Current vs industry vs history
PE Ratio (TTM) 22.75
PE Ratio ranked lower than
59.40% of 532 companies
in the Insurance Brokers industry.
Industry Max: 9600, Med: 17.59, Min: 0.02
AJG: 22.75
Ranked among companies with meaningful PE Ratio only.
PE Ratio range over the past 10 years
Min: 13.63, Med: 21.92, Max: 31.83
Current: 22.75
13.63
31.83
Forward PE Ratio 22.88
Forward P/E ranked lower than
65.17% of 89 companies
in the Insurance Brokers industry.
Industry Max: 78.13, Med: 17.89, Min: 2.09
AJG: 22.88
Ranked among companies with meaningful Forward P/E only.
N/A
PE Ratio without NRI 22.75
PE without NRI ranked lower than
59.06% of 530 companies
in the Insurance Brokers industry.
Industry Max: 9600, Med: 18.01, Min: 0.02
AJG: 22.75
Ranked among companies with meaningful PE without NRI only.
PE without NRI range over the past 10 years
Min: 12.16, Med: 21.75, Max: 28.62
Current: 22.75
12.16
28.62
Price-to-Owner-Earnings 20.01
Price-to-Owner-Earnings ranked higher than
52.80% of 250 companies
in the Insurance Brokers industry.
Industry Max: 1260, Med: 16.75, Min: 0.1
AJG: 20.01
Ranked among companies with meaningful Price-to-Owner-Earnings only.
Price-to-Owner-Earnings range over the past 10 years
Min: 11.62, Med: 17.47, Max: 30.01
Current: 20.01
11.62
30.01
PB Ratio 3.24
PB Ratio ranked lower than
75.87% of 659 companies
in the Insurance Brokers industry.
Industry Max: 1290, Med: 1.16, Min: 0.01
AJG: 3.24
Ranked among companies with meaningful PB Ratio only.
PB Ratio range over the past 10 years
Min: 1.83, Med: 2.77, Max: 3.5
Current: 3.24
1.83
3.5
PS Ratio 2.26
PS Ratio ranked higher than
67.03% of 640 companies
in the Insurance Brokers industry.
Industry Max: 2000, Med: 3.42, Min: 0.01
AJG: 2.26
Ranked among companies with meaningful PS Ratio only.
PS Ratio range over the past 10 years
Min: 0.9, Med: 1.66, Max: 2.26
Current: 2.26
0.9
2.26
Price-to-Free-Cash-Flow 20.75
Price-to-Free-Cash-Flow ranked lower than
51.79% of 168 companies
in the Insurance Brokers industry.
Industry Max: 2024, Med: 16.03, Min: 0.62
AJG: 20.75
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
Price-to-Free-Cash-Flow range over the past 10 years
Min: 9.12, Med: 16.59, Max: 36.84
Current: 20.75
9.12
36.84
Price-to-Operating-Cash-Flow 17.67
Price-to-Operating-Cash-Flow ranked lower than
52.53% of 198 companies
in the Insurance Brokers industry.
Industry Max: 4171.43, Med: 13.69, Min: 0.03
AJG: 17.67
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
Price-to-Operating-Cash-Flow range over the past 10 years
Min: 7.75, Med: 13.74, Max: 26.65
Current: 17.67
7.75
26.65
EV-to-EBIT 27.35
EV-to-EBIT ranked lower than
66.18% of 411 companies
in the Insurance Brokers industry.
Industry Max: 549489.13, Med: 14.83, Min: 0.03
AJG: 27.35
Ranked among companies with meaningful EV-to-EBIT only.
EV-to-EBIT range over the past 10 years
Min: 9.4, Med: 21, Max: 31.9
Current: 27.35
9.4
31.9
EV-to-EBITDA 16.97
EV-to-EBITDA ranked lower than
55.80% of 414 companies
in the Insurance Brokers industry.
Industry Max: 549489.13, Med: 13.58, Min: 0.03
AJG: 16.97
Ranked among companies with meaningful EV-to-EBITDA only.
EV-to-EBITDA range over the past 10 years
Min: 6.8, Med: 13.3, Max: 17.8
Current: 16.97
6.8
17.8
EV-to-Revenue 2.76
EV-to-Revenue ranked higher than
65.42% of 587 companies
in the Insurance Brokers industry.
Industry Max: 54963.05, Med: 4.2, Min: 0.01
AJG: 2.76
Ranked among companies with meaningful EV-to-Revenue only.
EV-to-Revenue range over the past 10 years
Min: 1.1, Med: 2, Max: 2.8
Current: 2.76
1.1
2.8
PEG Ratio 3.58
PEG Ratio ranked lower than
74.66% of 146 companies
in the Insurance Brokers industry.
Industry Max: 131.08, Med: 1.55, Min: 0.02
AJG: 3.58
Ranked among companies with meaningful PEG Ratio only.
PEG Ratio range over the past 10 years
Min: 1.55, Med: 3.43, Max: 41.93
Current: 3.58
1.55
41.93
Shiller PE Ratio 35.75
Shiller PE Ratio ranked lower than
70.30% of 165 companies
in the Insurance Brokers industry.
Industry Max: 262.75, Med: 22.49, Min: 0.36
AJG: 35.75
Ranked among companies with meaningful Shiller PE Ratio only.
Shiller PE Ratio range over the past 10 years
Min: 11.45, Med: 27.45, Max: 37.49
Current: 35.75
11.45
37.49
Current Ratio 1.12
Current Ratio ranked lower than
81.19% of 505 companies
in the Insurance Brokers industry.
Industry Max: 17001.61, Med: 2.42, Min: 0.01
AJG: 1.12
Ranked among companies with meaningful Current Ratio only.
Current Ratio range over the past 10 years
Min: 0.88, Med: 1.03, Max: 1.19
Current: 1.12
0.88
1.19
Quick Ratio 1.12
Quick Ratio ranked lower than
77.62% of 505 companies
in the Insurance Brokers industry.
Industry Max: 14787.61, Med: 2.17, Min: 0.01
AJG: 1.12
Ranked among companies with meaningful Quick Ratio only.
Quick Ratio range over the past 10 years
Min: 0.88, Med: 1.03, Max: 1.19
Current: 1.12
0.88
1.19
Days Sales Outstanding 324.68
Days Sales Outstanding ranked lower than
81.28% of 406 companies
in the Insurance Brokers industry.
Industry Max: 930.51, Med: 49.06, Min: 0.04
AJG: 324.68
Ranked among companies with meaningful Days Sales Outstanding only.
Days Sales Outstanding range over the past 10 years
Min: 115.38, Med: 153.35, Max: 324.68
Current: 324.68
115.38
324.68
Days Payable 492.63
Days Payable ranked lower than
90.95% of 232 companies
in the Insurance Brokers industry.
Industry Max: 11506.75, Med: 32.02, Min: 0.05
AJG: 492.63
Ranked among companies with meaningful Days Payable only.
Days Payable range over the past 10 years
Min: 268.17, Med: 386.25, Max: 492.63
Current: 492.63
268.17
492.63

Dividend & Buy Back

Current vs industry vs history
Dividend Yield % 1.97
Trailing Dividend Yield ranked lower than
58.11% of 635 companies
in the Insurance Brokers industry.
Industry Max: 390.92, Med: 2.86, Min: 0.03
AJG: 1.97
Ranked among companies with meaningful Trailing Dividend Yield only.
Trailing Dividend Yield range over the past 10 years
Min: 1.96, Med: 3.32, Max: 8.16
Current: 1.97
1.96
8.16
Dividend Payout Ratio 0.45
Dividend Payout Ratio ranked lower than
61.85% of 367 companies
in the Insurance Brokers industry.
Industry Max: 44.44, Med: 0.41, Min: 0.01
AJG: 0.45
Ranked among companies with meaningful Dividend Payout Ratio only.
Dividend Payout Ratio range over the past 10 years
Min: 0.45, Med: 0.72, Max: 1.03
Current: 0.45
0.45
1.03
3-Year Dividend Growth Rate (Per Share) 3.50
3-Year Dividend Growth Rate ranked lower than
60.63% of 221 companies
in the Insurance Brokers industry.
Industry Max: 132.1, Med: 6.3, Min: -100
AJG: 3.5
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
3-Year Dividend Growth Rate range over the past 10 years
Min: 1, Med: 7.4, Max: 24.4
Current: 3.5
1
24.4
Forward Dividend Yield % 2.03
Forward Dividend Yield ranked lower than
61.00% of 618 companies
in the Insurance Brokers industry.
Industry Max: 667, Med: 3.03, Min: 0.03
AJG: 2.03
Ranked among companies with meaningful Forward Dividend Yield only.
N/A
Yield-on-Cost (5-Year) % 2.29
Yield-on-Cost (5y) ranked lower than
60.96% of 643 companies
in the Insurance Brokers industry.
Industry Max: 411.49, Med: 3.57, Min: 0.01
AJG: 2.29
Ranked among companies with meaningful Yield-on-Cost (5y) only.
Yield-on-Cost (5y) range over the past 10 years
Min: 2.28, Med: 3.87, Max: 9.51
Current: 2.29
2.28
9.51
3-Year Share Buyback Rate -1.30
3-Year Share Buyback Rate ranked lower than
54.60% of 337 companies
in the Insurance Brokers industry.
Industry Max: 100, Med: -2.1, Min: -530
AJG: -1.3
Ranked among companies with meaningful 3-Year Share Buyback Rate only.
3-Year Share Buyback Rate range over the past 10 years
Min: -12.8, Med: -4.2, Max: 0
Current: -1.3
-12.8
0

Valuation & Return

Current vs industry vs history
Price-to-Projected-FCF 1.70
Price-to-Intrinsic-Value-Projected-FCF ranked lower than
56.90% of 232 companies
in the Insurance Brokers industry.
Industry Max: 109.33, Med: 1.24, Min: 0.16
AJG: 1.7
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
Price-to-Intrinsic-Value-Projected-FCF range over the past 10 years
Min: 0.78, Med: 1.27, Max: 3.25
Current: 1.7
0.78
3.25
Price-to-DCF (Earnings Based) 1.56
Price-to-Intrinsic-Value-DCF (Earnings Based) ranked higher than
52.17% of 23 companies
in the Insurance Brokers industry.
Industry Max: 2.62, Med: 1.74, Min: 0.66
AJG: 1.56
Ranked among companies with meaningful Price-to-Intrinsic-Value-DCF (Earnings Based) only.
Price-to-Intrinsic-Value-DCF (Earnings Based) range over the past 10 years
Min: 0.9, Med: 1.77, Max: 7.5
Current: 1.56
0.9
7.5
Price-to-Median-PS-Value 1.35
Price-to-Median-PS-Value ranked lower than
67.45% of 596 companies
in the Insurance Brokers industry.
Industry Max: 606, Med: 0.95, Min: 0.01
AJG: 1.35
Ranked among companies with meaningful Price-to-Median-PS-Value only.
Price-to-Median-PS-Value range over the past 10 years
Min: 0.59, Med: 1, Max: 2.16
Current: 1.35
0.59
2.16
Price-to-Peter-Lynch-Fair-Value 3.17
Price-to-Peter-Lynch-Fair-Value ranked lower than
83.04% of 112 companies
in the Insurance Brokers industry.
Industry Max: 8.59, Med: 1.08, Min: 0.04
AJG: 3.17
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
Price-to-Peter-Lynch-Fair-Value range over the past 10 years
Min: 0.62, Med: 1.87, Max: 5.42
Current: 3.17
0.62
5.42
Earnings Yield (Joel Greenblatt) % 3.66
Earnings Yield (Greenblatt) ranked higher than
50.72% of 552 companies
in the Insurance Brokers industry.
Industry Max: 3333.33, Med: 3.94, Min: -10000
AJG: 3.66
Ranked among companies with meaningful Earnings Yield (Greenblatt) only.
Earnings Yield (Greenblatt) range over the past 10 years
Min: 3.1, Med: 4.8, Max: 10.7
Current: 3.66
3.1
10.7
Forward Rate of Return (Yacktman) % 10.49
Forward Rate of Return ranked higher than
56.70% of 194 companies
in the Insurance Brokers industry.
Industry Max: 256.54, Med: 9.3, Min: -1595.4
AJG: 10.49
Ranked among companies with meaningful Forward Rate of Return only.
Forward Rate of Return range over the past 10 years
Min: 4.4, Med: 10.8, Max: 17.7
Current: 10.49
4.4
17.7

More Statistics

Revenue (TTM) (Mil) $ 7,029.8
EPS (TTM) $ 3.7
Beta 0.63
Volatility % 16.31
52-Week Range $ 64.54 - 84.81
Shares Outstanding (Mil) 185.25

Analyst Estimate

Piotroski F-Score Details

Piotroski F-Score 5
Positive ROA Y
Positive CFROA Y
Higher ROA yoy N
CFROA > ROA Y
Lower Leverage yoy N
Higher Current Ratio yoy Y
Less Shares Outstanding yoy N
Higher Gross Margin yoy Y
Higher Asset Turnover yoy N