Arthur J. Gallagher & Co.

Finance
Specialty Insurers
www.ajg.com

Earnings Score
Moat Score

Market Cap $71.79B
PE 49
Debt $13.16B
Cash $14.99B
EV $69.96B
FCF -

Earnings

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Sales & Net Margins

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Earnings	$1.46B
EBIT	$1.87B
ROE	7%
ROA	3%
Equity	$20.18B
Growth Stability	100%
PE	49.08
PEG	4
PB	3.56
P/S	6.21
Price/Cash	0.21
Debt/Equity	0.65
Net Margins	13%
Op. Margins	16%
Earnings CAGR	15%
Sales Growth YoY	12%
Sales Growth QoQ	-3%
Sales CAGR	8%
FCF CAGR	0%
Equity CAGR	16%
Earnings Stability	0.94
Earnings Growth YoY	-824%
Earnings Growth QoQ	-17%

Earnings CAGR 5Y	12%
Sales CAGR 5Y	12%
Equity CAGR 5Y	22%
Earnings CAGR 3Y	14%
Sales CAGR 3Y	14%
Equity CAGR 3Y	24%
Market Cap	$71.79B
Revenue	$11.55B
Dividend Yield	1%
Payout Ratio	36%
Assets	$64.26B
Total Debt	$13.16B
Cash	$14.99B
Shares Outstanding	220.5M
EV	69.96B
Earnings Score	95%
Moat Score	67%
Working Capital	14.85B
Current Ratio	1.51
Shares Growth 3y	2%
Equity Growth QoQ	65%
Equity Growth YoY	87%

Assets & ROA

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Stockholders Equity & ROE

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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 commissioning 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.

SEC Filings

Direct access to Arthur J. Gallagher & Co. (AJG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Arthur J. Gallagher & Co. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Arthur J. Gallagher & Co. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 15%

Stability 94%

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Arthur J. Gallagher & Co. Discounted Cash Flow

Fully customizable DCF calculator online for Arthur J. Gallagher & Co..

Years

Calculation mode

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
DCF		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Value	$0

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	7%	7%	8%	9%	9%	12%	11%	13%	10%	13%	13%
ROA	-	4%	4%	4%	4%	5%	3%	3%	2%	3%	3%
ROE	-	11%	11%	14%	13%	13%	11%	12%	9%	7%	7%

Good Net Margins (12.66%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	6.31	-	-	-	-	-	-	-	-	-
Debt over Equity	0.63	0.74	0.72	0.76	0.88	0.73	0.73	0.67	0.74	0.65	0.65
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.65)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	4%	10%	13%	4%	-3%	17%	4%	18%	15%	12%
Earnings YoY growth	-	16%	12%	37%	6%	22%	11%	23%	-13%	51%	12%
Equity YoY growth	-	-1%	14%	10%	14%	20%	37%	7%	18%	87%	22%
FCF YoY growth	-	-22%	-	-	-	-	-	-	-	-	-