Stock Analysis
Arthur J. Gallagher & Co.AJG
P/E 41.62×· 5Y range 30.99–63.09×· 51th percentile of history
Sector: Financial Services · Industry: Insurance Agents, Brokers & Service
AnalystsStrong Buy29 analystsP/E 41.6× sits at the 51st percentile of its 5.089664613278576-year history.
Cash covers 10% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Quality80
- Growth77
Risks
- Profitability43
- Financial Health45
Mixed picture — no clear quality or value edge.
Bull Case
- ✓Revenue CAGR 14.2% — durable top-line growth
What's happening with AJG
Profile
Strong earnings quality and growth; profitability, financial health and valuation lag behind.
How is each axis scored?
- Valuation49/100 · Weak
- P/E vs own history (51th pct)12/25
- FCF yield (3.5%)12/25
- P/S (4.1x)20/25
- EV/EBIT (30.2x)5/25
- Growth77/100 · Strong
- Revenue CAGR (14.2%)20/25
- Net income CAGR (13.3%)20/25
- EPS CAGR 5Y (7.1%)12/25
- Fwd implied growth (161.6%)25/25
- Profitability43/100 · Weak
- ROIC (5.6%)5/25
- ROE (6.6%)5/25
- Net margin (10.0%)13/25
- Operating margin (16.4%)20/25
- Financial Health45/100 · Weak
- Altman Z (1.01)3/25
- Current ratio (1.05)12/25
- Interest coverage (6.3x)18/25
- Net cash / debt (D/A 16%)12/25
- Quality80/100 · Strong
- Piotroski F (5/9)15/25
- Beneish M (-2.24)20/25
- FCF conversion (146%)25/25
- Margin stability (σ 6.1%)20/25
- Moat68/100 · Moderate
- ROIC >12% years (0/10 yrs)0/25
- Median gross margin (57.2%)25/25
- FCF-positive years (7/7 yrs)25/25
- Worst-year net margin (worst 7.4%)18/25
Risk Flags
- ⚠Altman Z 1.0 — distress-zone balance sheet
About Arthur J. Gallagher & Co.
Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies. Show more
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.
Headquarters: ROLLING MEADOWS, IL · Employees: 72,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
49D+P/E (TTM)41.6xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 31.0x–63.1x · 51st pct
P/FCF27.6xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.5%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 3.2%–3.9% · 40th pct
P/S (TTM)4.15xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 3.3x–8.2x · 16th pct
EV/EBIT30.2xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 27.4x–57.5x · 4th pct
EV/Sales4.9xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E15.9xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.75xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.46C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield1.08%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio44.2%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
43D+ROIC5.6%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE6.6%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA2.0%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin10.0%C
Grade C: AverageNet Income / Revenue
Operating Margin16.4%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin12.6%D
Grade D: LowGross Profit / Revenue
FCF Margin14.5%C
Grade C: AverageFCF / Revenue
True FCF Margin14.1%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
77B+Revenue CAGR14.2%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR13.3%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)7.1%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth161.6%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+26.8%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income4.1%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.4%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
45D+Altman Z-Score1.01D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.05xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.05xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage6.3xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment5.6yC
Grade C: AverageYears to repay net debt via FCF
Net Debt/EBIT4.9xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity0.59xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.10xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
80APiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.24A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion145.7%A
Grade A: StrongFCF / Net Income
Margin Stability6.1%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.0%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.20xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
CARY RICHARD C Filed | CARY RICHARD C | SellOpen market sale | -1000 | |
Gallagher Patrick Murphy Filed | Gallagher Patrick Murphy | Gift | +50.0K | |
GALLAGHER J PATRICK JR Filed | GALLAGHER J PATRICK JR | Gift | -49988 | |
Hudson Scott R Filed | Hudson Scott R | Option exercise | -12000 | |
Hudson Scott R Filed | Hudson Scott R | SellOpen market sale | -12000 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Hudson Scott R Filed | Hudson Scott R | Option exercise | +12.0K | |
Miskel Christopher C. Filed | Miskel Christopher C. | Grant / award | +153 | |
Bay Walter D. Filed | Bay Walter D. | SellOpen market sale | -12000 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
68BROIC >12% Years0/10 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)57.2%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years7/7 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor7.4%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$6.12
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$5.41
Cash & short-term investments per share (Finnhub)
Book Value / Share$92.54
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$14.11B
Total debt obligations (short + long term)
Cash & Equiv.$1.39B
Cash and short-term investments
Net Debt$12.72B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$23.75B
Shareholders' equity (book value)
Asset / Liability1.41xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$65.34B
Current Market Capitalization
Beta0.51B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 16, 2026
Key Insights: Arthur J. Gallagher & Co. (AJG)
AJG is up 1.91% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Arthur J. Gallagher & Co.. Altman Z-Score of 1.01 is below the 1.81 distress threshold — an elevated financial-risk flag.
- Beneish M-Score of -2.24 suggests a low likelihood of earnings manipulation.
- Takes ~5.6 years to repay net debt from free cash flow.
See how AJG ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all AJG moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | Regular | 250.69 | +5.76% | 3.96 |
| Oct 15 | After-hours | 250.10 | +5.51% | 3.79 |
| Oct 14 | After-hours | 239.43 | +2.80% | 2.17 |
Frequently Asked Questions about AJG
What is the current Arthur J. Gallagher & Co. (AJG) stock price?
AJG is trading at $254.88 at the last market close, up 1.91% on the session. PreMarketPrice tracks AJG pre-market, intraday and after-hours prices.
Is AJG stock a buy right now?
PreMarketPrice's quantitative model rates Arthur J. Gallagher & Co.'s financial health at 45/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is AJG stock overvalued?
Arthur J. Gallagher & Co. trades at a trailing P/E of 41.6 and our valuation score rates it 49/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Arthur J. Gallagher & Co. report earnings?
No confirmed earnings date is currently scheduled for AJG. The Earnings section lists recent reports and updates as dates are announced.
What sector does Arthur J. Gallagher & Co. operate in?
Arthur J. Gallagher & Co. operates in the Financial Services sector, within the Insurance Agents, Brokers & Service industry. The Related Stocks section lists sector peers for comparison.
What does Arthur J. Gallagher & Co. do?
Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies.
About Arthur J. Gallagher & Co. (AJG) Stock
Arthur J. Gallagher & Co. (AJG) is a US-listed stock operating in the Financial Services sector, specifically the Insurance Agents, Brokers & Service industry. As of the latest update, Arthur J. Gallagher & Co. is trading at $254.88, up 1.91% on the day with a market capitalization of $65.3 billion. The financial health score for AJG is 45/100, which indicates moderate financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for AJG stock.
AJG Stock Analysis & Key Metrics
On PreMarketPrice, you can track Arthur J. Gallagher & Co. (AJG) across multiple dimensions:
- Pre-market price & movement: Real-time AJG stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for AJG with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Arthur J. Gallagher & Co. across multiple reporting periods.
- Financial health score: A composite score of 45/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for AJG.
- Sector peers: Compare AJG against 6 other financial services stocks on key financial metrics.
Is AJG a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Arthur J. Gallagher & Co. (AJG) as an investment. The financial health score of 45/100 suggests moderate financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Arthur J. Gallagher & Co. (AJG) trades on NYSE. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.