Arthur J. Gallagher & Co. engages in the provision of insurance brokerage, consulting, and third party claims settlement and administration services to both domestic and international entities. It operates through the following business segments: Brokerage, Risk Management and Corporate. The Brokerage segment comprises of retail and wholesale insurance brokerage operations. The Risk Management segment provides contract claim settlement and administration services for enterprises and public entities that choose to self-insure some or all of their property/casualty coverages and for underwriting enterprises that choose to outsource some or all of their property/casualty claims departments. The Corporate segment manages clean energy and other investments. The company was founded by Arthur J. Gallagher on October 1, 1927 and is headquartered in Rolling Meadows, IL.
Highlights
AJG's equity is up by 13% year-on-year and by 9% since the previous quarter
The gross margin has grown by 12% YoY and by 3.2% from the previous quarter
AJG's debt is up by 5% year-on-year but it is down by 5% since the previous quarter
AJG's price to earnings (P/E) is 25% higher than its 5-year quarterly average of 22.2 and 13% higher than its last 4 quarters average of 24.6
Key stats
What are the main financial stats of AJG
Market
Shares outstanding
191.47M
Market cap
$20.49B
Enterprise value
$22.43B
Valuations
Price to earnings (P/E)
27.79
Price to book (P/B)
3.7
Price to sales (P/S)
2.9
EV/EBIT
25.31
EV/EBITDA
15.69
EV/Sales
3.21
Earnings
Revenue
$7B
EBIT
$886.4M
EBITDA
$1.43B
Free cash flow
$1.38B
Per share
EPS
$3.85
Free cash flow per share
$7.28
Book value per share
$28.95
Revenue per share
$36.9
TBVPS
$70.27
Balance sheet
Total assets
$21.31B
Total liabilities
$15.77B
Debt
$4.95B
Equity
$5.49B
Working capital
$896.4M
Liquidity
Debt to equity
0.9
Current ratio
1.09
Quick ratio
1
Net debt/EBITDA
1.36
Margins
EBITDA margin
20.4%
Gross margin
70.8%
Net margin
10.4%
Operating margin
14.3%
Efficiency
Return on assets
3.6%
Return on equity
14.1%
Return on invested capital
16.6%
Return on capital employed
7.7%
Return on sales
12.7%
Dividend
Dividend yield
1.65%
DPS
$1.76
Payout ratio
45.7%
AJG stock price
How has the Arthur J Gallagher stock price performed over time
Financial performance
How have Arthur J Gallagher's revenue and profit performed over time
Revenue
$7B
Gross profit
$4.95B
Operating income
$1B
Net income
$724.6M
Gross margin
70.8%
Net margin
10.4%
AJG's operating margin is up by 16% year-on-year and by 10% since the previous quarter
The operating income has grown by 15% YoY and by 9% from the previous quarter
The gross margin has grown by 12% YoY and by 3.2% from the previous quarter
Arthur J Gallagher's gross profit has increased by 11% YoY and by 2.1% from the previous quarter
Valuation
What is Arthur J Gallagher stock price valuation
P/E
27.79
P/B
3.7
P/S
2.9
EV/EBIT
25.31
EV/EBITDA
15.69
EV/Sales
3.21
AJG's price to earnings (P/E) is 25% higher than its 5-year quarterly average of 22.2 and 13% higher than its last 4 quarters average of 24.6
The EPS has grown by 6% from the previous quarter and by 2.9% YoY
AJG's price to book (P/B) is 32% more than its 5-year quarterly average of 2.8 and 12% more than its last 4 quarters average of 3.3
AJG's equity is up by 13% year-on-year and by 9% since the previous quarter
The stock's P/S is 53% above its 5-year quarterly average of 1.9 and 21% above its last 4 quarters average of 2.4
Efficiency
How efficient is Arthur J Gallagher business performance
The ROS has grown by 35% YoY and by 10% from the previous quarter
Arthur J Gallagher's return on invested capital has increased by 11% YoY and by 8% QoQ
The return on assets has declined by 8% year-on-year but it has increased by 2.9% since the previous quarter
AJG's ROE is down by 4.1% year-on-year but it is up by 2.9% since the previous quarter
Dividends
What is AJG's dividend history
DPS
$1.76
Dividend yield
1.65%
Payout ratio
45.7%
Recent dividends
Financial health
How did Arthur J Gallagher financials performed over time
AJG's total assets is 35% greater than its total liabilities
AJG's total assets is up by 11% year-on-year and by 2.3% since the previous quarter
AJG's debt is 10% smaller than its equity
The debt to equity has declined by 14% since the previous quarter and by 6% year-on-year
AJG's equity is up by 13% year-on-year and by 9% since the previous quarter
All financial data is based on trailing twelve months (TTM) periods - updated
quarterly, unless otherwise specified.