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Arthur J. GallagherFRA:GAH +3.15%82 3-Year ROIIC % is 2.06 as of Dec. 2025, which is 55% below its 10-year median of 4.58. GuruFocus rates FRA:GAH with a GF Score™ of 82/100 and a GF Value™ of €285.98 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 333 Insurance companies, Arthur J. Gallagher ranks worse than 65.77% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Arthur J. Gallagher's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 2.06%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Arthur J. Gallagher's 3-Year ROIIC % or its related term are showing as below:
FRA:GAH's 3-Year ROIIC % is ranked worse than 65.77% of 333
companies
in the Insurance industry
Industry Median: 5.35
vs FRA:GAH: 2.06
Arthur J. Gallagher (FRA:GAH) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Arthur J. Gallagher 3-Year ROIIC % Related Terms
Arthur J. Gallagher 3-Year ROIIC % Historical Data
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The historical data trend for Arthur J. Gallagher's 3-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:GAH vs AON, MRSH, WTW: 3-Year ROIIC % Comparison
For the Insurance Brokers subindustry, Arthur J. Gallagher's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arthur J. Gallagher 3-Year ROIIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Arthur J. Gallagher's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Arthur J. Gallagher's 3-Year ROIIC % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Arthur J. Gallagher (FRA:GAH) has a 3-Year ROIIC % of 2.06 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Arthur J. Gallagher and its competitors. This is 55% below median its historical median of 4.58. Over the past decade, Arthur J. Gallagher's 3-Year ROIIC % has ranged from 1.34 to 11.42. According to the industry distribution chart, Arthur J. Gallagher ranks #219 out of 333 companies in the Insurance industry, placing it in the top 65.8%.
Is Arthur J. Gallagher's 3-Year ROIIC % too high?
Arthur J. Gallagher's current 3-Year ROIIC % of 2.06 is 55% below median its 10-year median of 4.58. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 11.42. The Insurance industry median 3-Year ROIIC % is 5.35. Arthur J. Gallagher's value of 2.06 is 61.5% below this industry median. Based on the distribution chart, Arthur J. Gallagher ranks #219 out of 333 companies in the Insurance industry, which is below the industry midpoint. Overall, Arthur J. Gallagher has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arthur J. Gallagher's 3-Year ROIIC % compare to AON and MRSH?
According to the Insurance industry distribution chart, Arthur J. Gallagher ranks #219 out of 333 companies for 3-Year ROIIC %. This places Arthur J. Gallagher in the lower half of its industry. The industry median 3-Year ROIIC % is 5.35. Arthur J. Gallagher's value of 2.06 is 61.5% below this benchmark. Historically, Arthur J. Gallagher's own 3-Year ROIIC % has ranged from 1.34 to 11.42 over the past decade. While the company's 10-year median is 4.58 vs. the industry median of 5.35, Arthur J. Gallagher has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Insurance company?
The median 3-Year ROIIC % among Insurance companies is 5.35, based on 333 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arthur J. Gallagher's current 3-Year ROIIC % of 2.06 is 61.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Arthur J. Gallagher and its competitors. For the Insurance industry, the median 3-Year ROIIC % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arthur J. Gallagher's current 3-Year ROIIC % is 2.06, which is 55% below median its own 10-year median of 4.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arthur J. Gallagher stock overvalued right now?
Based on GuruFocus' analysis, Arthur J. Gallagher (FRA:GAH) is currently considered Modestly Undervalued. The stock's GF Value™ is €285.98, compared to a current price of €219.60 — trading 23.2% below its estimated fair value. The current 3-Year ROIIC % is 2.06, which is 55% below median its 10-year median of 4.58 and 61.5% below the Insurance industry median of 5.35. Arthur J. Gallagher's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Arthur J. Gallagher (FRA:GAH), the current 3-Year ROIIC % is 2.06 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arthur J. Gallagher (FRA:GAH) Overvalued in 2026?
Based on GuruFocus' analysis, Arthur J. Gallagher stock appears to be undervalued.
The current stock price of €219.60 is trading 23.2% below its estimated GF Value™ of €285.98.
GuruFocus considers Arthur J. Gallagher to be Modestly Undervalued.
Key valuation signals for FRA:GAH:
3-Year ROIIC %: 2.06 (55% below median its 10-year median of 4.58)
GF Value™: €285.98 vs. price of €219.60 (23.2% below fair value)
Industry Position: 61.5% below the Insurance median (#219 of 333)
No single metric tells the full story. See the FRA:GAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies. The company's risk management segment provides third-party claims adjustment to companies that choose to self-insure. Gallagher has about 72,000 employees and generates about a third of its revenue internationally, primarily in Australia, Canada, New Zealand, and the UK.
82GF Score
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