AJG
Arthur J. Gallagher & Co.
$251.08
▼ 0.3%Updated Aug 7, 11:30 AM ET
AJG at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 52/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 32.5% over the last 12 months
Market Cap
$64.85B
P/E
39.86x
Forward P/E (est.)
41.85x
ROE
6.9%
Revenue Growth
24.5%
EPS Growth
-4.7%
Profit Margin
10.8%
FCF Yield
3.8%
Debt / Equity
0.56x
ROIC
—
Interest Coverage
—
Current Ratio
1.06x
Dividend Yield
1.3%
Implied Growth (rev. DCF)
6.1%
Rating Score
52/100
Arthur J. Gallagher & Co. (AJG) is a large-cap company in the Insurance Brokers industry, part of the Financials sector of the S&P 500, with a market value around $64.85B.
In its latest reported year it generated about $13.94B in revenue and $1.49B in net profit.
Our model rates AJG Neutral (52/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AJG's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AJG trades near $251.08, above its 50-day average ($211.49) and 200-day average ($240.01). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 76 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AJG's is $7.34 (~2.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AJG found buyers near $206.42 (support) and sellers near $252.96 (resistance); its 52-week range is $190.75–$320.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.3× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
14.2%
Revenue moved from $5.68B in 2016 to $13.94B in 2025, a 10.5% compound annual growth rate. The most recent year grew a strong 24.5% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
45.9%
Operating Margin
18.7%
Net Margin
10.7%
ROE
6.9%
Arthur J. Gallagher & Co. keeps about 10.8% of each sales dollar as net profit, with a 45.9% gross margin and 18.7% operating margin. Return on equity is 6.9%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$12.87B
Net Debt
$12.02B
Net Debt / EBITDA
—
Debt / Equity
0.56x
Leverage: debt-to-equity is 0.6x, with a current ratio of 1.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $12.87B of total debt against $857.60M of cash.
Operating CF
$1.93B
Free Cash Flow
$1.78B
FCF Margin
12.8%
In the latest year Arthur J. Gallagher & Co. produced about $1.93B of operating cash flow and $1.78B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.3%
Per share (latest FY)
$2.60
Total paid (latest FY)
$667.00M
History on record
10 years
dividend uses 37% of free cash flow
45% of net income paid out
total dividends increased 9 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
39.86x
P/S
3.96x
P/B
3.31x
EV / EBITDA
—
AJG trades at 39.9x trailing earnings (about 41.8x on estimated forward earnings), 4.0x sales, and 3.3x book value. Reverse-engineering today's price implies the market expects roughly 6.1% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$287.73
Current price
$251.08
Starting FCF (latest 10-K)
$1.78B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where AJG sits versus its Financials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How AJG stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
In the Financials sector (289 S&P 500 companies), AJG ranks #109 of 289 by our overall rating. It trades at a premium versus the sector on earnings (39.9x P/E vs. 15.8x median) with a lower return on equity (6.9% vs. 13.6%) and faster revenue growth (24.5% vs. 15.9%).
P/E vs sector
39.9x
median 15.8x
ROE vs sector
6.9%
median 13.6%
Growth vs sector
24.5%
median 15.9%
Sector rank
#109
of 289 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size. Sector median is across all 289 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $251.08 today · expected CAGR 12% – 24%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $17.43B | $21.78B | $27.23B | $34.04B | $42.55B |
| Net income | $1.92B | $2.40B | $3.00B | $3.74B | $4.68B |
| EPS | $7.42 | $9.28 | $11.60 | $14.50 | $18.12 |
| Share price (low) | $178.13 | $222.66 | $278.32 | $347.90 | $434.88 |
| Share price (high) | $296.88 | $371.10 | $463.87 | $579.84 | $724.80 |
| CAGR (low–high) | -29% / 18% | -6% / 22% | 3% / 23% | 8% / 23% | 12% / 24% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AJG:
- Revenue is growing 24.5% a year, a sign of real demand.
- As an established S&P 500 member in Financials, it brings scale and a long operating history.
The case against AJG:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 39.9x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Arthur J. Gallagher & Co. is a large-cap financials business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 39.9x earnings, which our model scores Neutral (52/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 29 Wall Street analysts covering AJG recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+10 pts of buy ratings).
Latest SEC Filings
AJG's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
AJG — frequently asked questions
Is AJG a good stock to buy?
We don't give buy or sell advice. Our model rates Arthur J. Gallagher & Co. Neutral (52/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AJG's rating on The Stocks School?
Arthur J. Gallagher & Co. currently scores 52/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AJG's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Arthur J. Gallagher & Co.'s SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AJG calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this AJG analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AJG. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.