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Arthur J Gallagher & Co (AJG)AJG

Upturn stock ratingUpturn stock rating
Arthur J Gallagher & Co
$312.24
Delayed price
Profit since last BUY5.95%
Consider higher Upturn Star rating
upturn advisory
BUY since 11 days
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
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Time period over

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​ Upturn stock ratingUpturn stock rating
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: 35.92%
Upturn Advisory Performance Upturn Advisory Performance5
Avg. Invested days: 46
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn 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​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 3
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 11/29/2024
Upturn Advisory Performance Upturn Advisory Performance5

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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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.

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