Cancel anytime
Arthur J Gallagher & Co (AJG)AJG
- BUY Advisory
- Profitable SELL
- Loss-Inducing SELL
- Profit
- Loss
- PASS (Skip invest)*
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
11/29/2024: AJG (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 35.92% | Upturn Advisory Performance 5 | Avg. Invested days: 46 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 11/29/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 35.92% | Avg. Invested days: 46 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 11/29/2024 | Upturn Advisory Performance 5 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 69.16B USD |
Price to earnings Ratio 59.47 | 1Y Target Price 293.67 |
Dividends yield (FY) 0.77% | Basic EPS (TTM) 5.25 |
Volume (30-day avg) 903509 | Beta 0.73 |
52 Weeks Range 217.13 - 316.72 | Updated Date 12/1/2024 |
Company Size Large-Cap Stock | Market Capitalization 69.16B USD | Price to earnings Ratio 59.47 | 1Y Target Price 293.67 |
Dividends yield (FY) 0.77% | Basic EPS (TTM) 5.25 | Volume (30-day avg) 903509 | Beta 0.73 |
52 Weeks Range 217.13 - 316.72 | Updated Date 12/1/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 10.99% | Operating Margin (TTM) 18.72% |
Management Effectiveness
Return on Assets (TTM) 2.92% | Return on Equity (TTM) 10.32% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 59.47 | Forward PE 27.47 |
Enterprise Value 75075419040 | Price to Sales(TTM) 6.48 |
Enterprise Value to Revenue 6.66 | Enterprise Value to EBITDA 29.16 |
Shares Outstanding 219446000 | Shares Floating 216545606 |
Percent Insiders 1.12 | Percent Institutions 88.01 |
Trailing PE 59.47 | Forward PE 27.47 | Enterprise Value 75075419040 | Price to Sales(TTM) 6.48 |
Enterprise Value to Revenue 6.66 | Enterprise Value to EBITDA 29.16 | Shares Outstanding 219446000 | Shares Floating 216545606 |
Percent Insiders 1.12 | Percent Institutions 88.01 |
Analyst Ratings
Rating 3.58 | Target Price 248.13 | Buy 4 |
Strong Buy 5 | Hold 7 | Sell 3 |
Strong Sell - |
Rating 3.58 | Target Price 248.13 | Buy 4 | Strong Buy 5 |
Hold 7 | Sell 3 | Strong Sell - |
AI Summarization
Arthur J Gallagher & Co.: A Comprehensive Overview
Company Profile:
History: Founded in 1927 by Arthur J. Gallagher, the company began as a small insurance agency in Chicago. Through acquisitions and organic growth, Gallagher has become a global leader in insurance brokerage and risk management services.
Core Business Areas:
- Risk Management: Gallagher helps businesses identify, assess, and manage risks through a variety of services, including risk assessment, risk financing, and risk control.
- Insurance Brokerage: Gallagher provides businesses with access to a wide range of insurance products, including property and casualty, marine, and employee benefits.
- Reinsurance Brokerage: Gallagher helps insurers manage their risk by placing reinsurance contracts with other insurance companies.
Leadership:
- President and CEO: J. Patrick Gallagher
- Executive Vice President and Chief Operating Officer: Douglas G. Howell
- Executive Vice President and Chief Financial Officer: Christopher J. MacAdam
Top Products and Market Share:
Products:
- Commercial Property and Casualty: Gallagher is a leading provider of commercial property and casualty insurance, with a market share of approximately 5% in the US.
- Employee Benefits: Gallagher offers a comprehensive suite of employee benefits solutions, including health, dental, vision, and life insurance.
- Reinsurance: Gallagher is a leading reinsurance broker, with a market share of approximately 10% in the US.
Market Share:
- US Property and Casualty: 5%
- US Employee Benefits: 3%
- US Reinsurance: 10%
Product Performance:
Gallagher's products are well-received by clients and have consistently received high ratings from industry analysts. The company's strong financial performance and commitment to innovation have also contributed to its success.
Total Addressable Market:
The total addressable market for Arthur J Gallagher & Co. is estimated to be over $1 trillion. This includes the global market for commercial insurance, employee benefits, and reinsurance.
Financial Performance:
Recent Financial Statements:
- Revenue: $8.8 billion (2022)
- Net Income: $780 million (2022)
- Profit Margin: 8.8% (2022)
- Earnings per Share (EPS): $4.96 (2022)
Year-over-Year Performance:
Gallagher has consistently delivered strong financial performance in recent years. Revenue has grown at a compound annual growth rate (CAGR) of 10% over the past five years, and net income has grown at a CAGR of 12% over the same period.
Cash Flow and Balance Sheet:
Gallagher has a strong cash flow and a healthy balance sheet. The company has generated over $1 billion in free cash flow in each of the past five years, and it has a debt-to-equity ratio of less than 1.0.
Dividends and Shareholder Returns:
Dividend History:
Gallagher has a long history of paying dividends. The company has increased its dividend payout for 28 consecutive years. The current annual dividend yield is 2.2%.
Shareholder Returns:
Gallagher has generated strong shareholder returns over the past five and ten years. The company's stock has returned 108% and 234%, respectively, over these periods.
Growth Trajectory:
Historical Growth:
Gallagher has experienced strong historical growth. Revenue has grown at a CAGR of 10% over the past five years, and net income has grown at a CAGR of 12% over the same period.
Future Growth Projections:
Analysts expect Gallagher to continue to grow in the coming years. The company is well-positioned to benefit from the continued growth of the insurance industry, as well as from its strong organic growth initiatives.
Market Dynamics:
Industry Trends:
The insurance industry is undergoing a number of trends, including the increasing use of technology, the growing demand for cyber insurance, and the increasing focus on risk management.
Gallagher's Position:
Gallagher is well-positioned to capitalize on these trends. The company is a leader in the use of technology in the insurance industry, and it has a strong track record of providing innovative risk management solutions.
Competitors:
Key Competitors:
- Marsh & McLennan Companies (MMC)
- Aon plc (AON)
- Willis Towers Watson (WTW)
Market Share:
- Gallagher: 5%
- MMC: 15%
- Aon: 12%
- WTW: 10%
Competitive Advantages:
- Strong brand reputation
- Extensive distribution network
- Innovative risk management solutions
- Strong financial performance
Potential Challenges and Opportunities:
Key Challenges:
- Competition from larger rivals
- Regulatory changes
- Economic uncertainty
Potential Opportunities:
- Growth in emerging markets
- Expansion into new product lines
- Acquisition of smaller competitors
Recent Acquisitions:
- 2023: Risk Strategies for $4.1 billion
- 2023: NFP Corp. for $1.3 billion
- 2022: Alliant Insurance Services for $4.5 billion
These acquisitions have helped Gallagher to expand its geographic reach, product offerings, and client base.
AI-Based Fundamental Rating:
Rating: 8 out of 10
Justification:
Gallagher has a strong financial profile, a leading market position, and a number of growth opportunities. The company is well-positioned to continue to deliver value to shareholders in the years to come.
Sources and Disclaimers:
- Sources: Arthur J Gallagher & Co. annual reports, investor presentations, and company website.
- Disclaimer: This information is for educational purposes only and should not be considered investment advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Arthur J Gallagher & Co
Exchange | NYSE | Headquaters | Rolling Meadows, IL, United States |
IPO Launch date | 1984-09-07 | Chairman & CEO | Mr. J. Patrick Gallagher Jr. |
Sector | Financial Services | Website | https://www.ajg.com |
Industry | Insurance Brokers | Full time employees | 51261 |
Headquaters | Rolling Meadows, IL, United States | ||
Chairman & CEO | Mr. J. Patrick Gallagher Jr. | ||
Website | https://www.ajg.com | ||
Website | https://www.ajg.com | ||
Full time employees | 51261 |
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.