Arthur J. Gallagher & Co. (AJG) is a publicly traded company in the Financial Services — Insurance - Brokers industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Arthur J. Gallagher & Co., alongside its various subsidiaries, operates globally, providing a wide array of services that encompass insurance brokerage, expert consulting, and outsourced claims settlement and administration. Its geographic reach extends across the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. The company's business model is divided into two primary segments: Brokerage and Risk Management.
Analysis Summary
Arthur J. Gallagher & Co. reported revenue of $13.94B in the most recent fiscal year, growing at a 5-year CAGR of 14.7%. Net income reached $1.49B, with a 12.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 74.6%, operating margin 17.0%, net margin 10.0%. Free cash flow grew at 1.5% CAGR over 5 years.
At the current price of $243.78, AJG trades at a P/E of 40.26 and an ROE of 6.67%. Market capitalisation stands at $62.6B, placing it among large-cap names.
Balance sheet quality for AJG: current ratio of 1.1, net debt of $12.60B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $1.78B represents 119% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Price
| Price | $243.78 |
| Market Cap | $62.6B |
| Exchange | NYSE |
| Country | US |
Valuation Ratios
| P/E Ratio | 40.26 |
| Price / Book | 2.66 |
| EV / EBITDA | 16.56 |
| Dividend Yield | 1.12% |
Profitability
| Return on Equity | 6.67% |
| Return on Invested Capital | 5.30% |
| Return on Assets | 1.92% |
| Gross Margin | 74.55% |
| Operating Margin | 17.03% |
| Net Margin | 9.96% |
Financial Health
| Debt / Equity | 0.09 |
| Current Ratio | 1.05 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 1.32 |
What to look at in Insurance
Insurers earn in 2 ways: underwriting well (combined ratio) and investing the float. Buffett built Berkshire that way.
- Op Margin 5y (Combined Ratio proxy) — Combined ratio proxy when FMP does not expose it. ≥10% 5y average = underwriting discipline (CR <100%)
- Book Value / Share growth — How Buffett measures Berkshire. The real value shareholders accumulate
- Debt / Equity — Leveraged insurers fail fast under catastrophes
- P/B (Price / Book) — Insurers are valued by book multiple. Here it is crossed with ROE (quality × valuation)
- Dividend growth streak — Consecutive years raising dividend per share — solid insurers stack decades
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| AJG | Arthur J. Gallagher & Co. | $62.6B | 40.26 | 2.66 | 6.7% |
| PYPL | PayPal Holdings, Inc. | $45.1B | 10.03 | 2.41 | 24.4% |
| HDB | HDFC Bank Limited | $114.8B | 13.22 | 1.73 | 13.9% |
| SMFG | Sumitomo Mitsui Financial Group, Inc. | $101.9B | 15.48 | 1.63 | 10.9% |
| AON | Aon plc | $63.8B | 16.61 | 6.70 | 42.6% |
| TRV | The Travelers Companies, Inc. | $79.0B | 10.28 | 2.48 | 25.6% |
| MFC | Manulife Financial Corporation | $72.9B | 16.61 | 1.93 | 13.0% |
| AFL | Aflac Incorporated | $59.5B | 12.49 | 1.94 | 16.4% |
Price Performance
| 1 month | -1.84% |
| 3 months | +13.88% |
| Year-to-date | -5.80% |
| 1 year | -16.70% |
| 3 years | +4.58% |
| 5 years | +64.28% |
52-Week Range
| 52-week High | $313.55 |
| 52-week Low | $190.75 |
| Avg Volume (90d) | 1.6M |
Dividend History
| Date | Amount | Yield |
|---|---|---|
| 2026-09-08 | $0.7000 | 1.15% |
| 2026-06-05 | $0.7000 | 1.15% |
| 2026-03-06 | $0.7000 | 1.15% |
| 2025-12-05 | $0.6500 | 1.07% |
| 2025-09-05 | $0.6500 | 1.07% |
| 2025-06-06 | $0.6500 | 1.07% |
| 2025-03-07 | $0.6500 | 1.07% |
| 2024-12-06 | $0.6000 | 0.98% |
| 2024-09-06 | $0.6000 | 0.98% |
| 2024-06-07 | $0.6000 | 0.98% |
Related companies: AFL · AON · HDB · MFC · MMC · PYPL · SMFG
Explore sector: Financial Services · Insurance - Brokers
More sections of AJG: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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