Arthur J Gallagher & Co (AJG) AI Stock Analysis

• Market Cap: $63.20B
• Dividend Yield: 0.97%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 39.2
• Beta (1Y): 0.33
• Revenue Growth: 17.17%
• EPS Growth: 19.12%
• Country: US
• Employees: 53,714
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 2.32
• Shares Outstanding: 256,800,000
• 10 Day Avg. Volume: 1,429,123
• 30 Day Avg. Volume: 1,784,071
• PEG Ratio: 0.91
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 5.42
• P/FCF Ratio: 25.64
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 7.13
• Enterprise Value/Gross Profit: 12.67
• Enterprise Value/Ebitda: 25.69
• 1Y Price Target: $305.11
• Price Target Upside: 23.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 10.82
• Revenue Forecast (FY): $13.90B

• Rating: 70 Outperform
• Price Target: $271.00 ▲(10.12% Upside)

Arthur J Gallagher & Co's overall stock score is driven by strong financial performance and positive earnings call insights. However, bearish technical indicators and a high P/E ratio suggest caution. The company's ability to manage debt and cash flow effectively will be crucial for sustaining growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability and market position.

Successful Acquisitions

Strategic acquisitions expand market reach and diversify revenue streams, contributing to sustained growth and competitive advantage.

Operational Efficiency

High margins reflect efficient operations and cost management, supporting profitability and resilience against market fluctuations.

Negative Factors

High Debt Levels

Elevated debt levels may strain financial flexibility and increase vulnerability to economic downturns, impacting long-term stability.

Cash Flow Challenges

Low cash conversion efficiency could limit the ability to fund growth initiatives and respond to market opportunities, affecting future performance.

Property Market Challenges

Declines in property premiums may signal market challenges, potentially impacting revenue and necessitating strategic adjustments.

Arthur J Gallagher & Co Business Overview & Revenue Model

Company Description

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, third-party claims settlement, and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. It operates through Brokerage and Risk Management segments. The Brokerage segment consists of retail and wholesale insurance brokerage operations; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverage's to underwriting enterprises. This segment also performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers brokerage and consulting services to businesses and organizations, including commercial, not-for-profit, and public entities, as well as individuals in the areas of insurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services to enterprises and public entities; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent insurance brokers and consultants. It serves commercial, industrial, public, religious, and not-for-profit entities. The company was incorporated in 1927 and is headquartered in Rolling Meadows, Illinois.

How the Company Makes Money

Arthur J Gallagher & Co primarily generates revenue through commissions and fees earned from providing insurance brokerage services. The company acts as an intermediary between clients and insurance carriers, earning commissions based on the premiums paid by clients for their insurance policies. Additionally, AJG earns revenues from consulting services related to risk management and employee benefits, often charging fees for its advisory services. The company also benefits from significant partnerships with various insurance carriers, allowing it to offer a wide array of products and access to specialized insurance markets. Moreover, acquisitions of smaller brokerage firms contribute to revenue growth by expanding AJG's market reach and client base.

Arthur J Gallagher & Co Financial Statement Overview

Summary

Arthur J Gallagher & Co exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage and stable returns on equity. While cash flow generation has seen some decline, the company maintains a strong cash conversion ratio, indicating resilience.

Income Statement

Arthur J Gallagher & Co has demonstrated consistent revenue growth with a 3.7% increase in TTM, following a strong 14.7% growth in the previous year. The company maintains healthy profitability with a gross profit margin of 55.18% and a net profit margin of 13.16% in TTM. EBIT and EBITDA margins are also robust at 20.97% and 28.25%, respectively, indicating efficient operations and cost management.

Balance Sheet

The company's balance sheet shows a strong equity position with a debt-to-equity ratio of 0.67 in the latest annual report, improving to 0.05 in TTM, reflecting reduced leverage. Return on equity is stable at 8.45% in TTM, suggesting effective use of shareholder funds. The equity ratio stands at 28.73%, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 21.91% in TTM, which is a concern. However, the company maintains a strong free cash flow to net income ratio of 93.02%, indicating good cash conversion. The operating cash flow to net income ratio is lower at 4.98%, suggesting potential areas for improvement in cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.03B	11.55B	10.07B	8.55B	8.21B	7.01B
Gross Profit	7.34B	4.88B	4.25B	3.60B	2.98B	2.51B
EBITDA	3.62B	3.10B	2.18B	2.18B	1.77B	1.63B
Net Income	1.60B	1.46B	969.50M	1.11B	906.80M	818.80M
Balance Sheet
Total Assets	79.07B	64.26B	51.62B	38.36B	33.34B	22.33B
Cash, Cash Equivalents and Short-Term Investments	1.40B	14.99B	971.50M	738.40M	402.60M	664.60M
Total Debt	13.69B	13.49B	8.32B	6.42B	6.59B	4.87B
Total Liabilities	55.83B	44.08B	40.80B	29.17B	24.78B	16.10B
Stockholders Equity	23.21B	20.15B	10.78B	9.14B	8.51B	6.19B
Cash Flow
Free Cash Flow	1.77B	2.44B	1.84B	1.21B	1.58B	1.65B
Operating Cash Flow	1.92B	2.58B	2.03B	1.39B	1.70B	1.75B
Investing Cash Flow	-16.26B	-1.59B	-3.29B	-1.00B	-3.43B	-416.80M
Financing Cash Flow	14.39B	13.05B	2.87B	212.60M	2.68B	-505.10M

Arthur J Gallagher & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 246.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AJG, the sentiment is Negative. The current price of 246.1 is below the 20-day moving average (MA) of 251.12, below the 50-day MA of 274.70, and below the 200-day MA of 307.19, indicating a bearish trend. The MACD of -7.08 indicates Negative momentum. The RSI at 32.80 is Neutral, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AJG.

Arthur J Gallagher & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRO	76 Outperform	$27.72B	24.36	10.47%	0.77%	17.87%	-9.35%
MMC	71 Outperform	$90.14B	22.07	28.62%	1.86%	10.57%	2.57%
AJG	70 Outperform	$63.20B	39.15	9.05%	0.97%	17.17%	19.12%
ERIE	70 Outperform	$13.68B	23.89	30.44%	1.86%	9.64%	15.87%
WTW	69 Neutral	$30.72B	15.31	27.79%	1.13%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AON	66 Neutral	$75.48B	28.12	38.33%	0.83%	14.06%	5.52%

Arthur J Gallagher & Co Corporate Events

Arthur J. Gallagher Reports Strong Q3 2025 Growth

Arthur J. Gallagher & Co., a global insurance brokerage and risk management firm, has reported its financial results for the third quarter of 2025, showcasing continued growth and strategic advancements. The company, headquartered in Rolling Meadows, Illinois, operates in approximately 130 countries, providing a wide range of services through its network of brokers and consultants.

Arthur J. Gallagher Reports Q3 2025 Revenue Growth

Arthur J. Gallagher & Co. announced its financial results for the third quarter of 2025, reporting significant growth in brokerage revenues, which increased to $2,922.9 million compared to $2,396.4 million in the same quarter of the previous year. This growth highlights the company’s strong market positioning and effective integration of acquisitions, despite challenges such as workforce and lease terminations.

The most recent analyst rating on (AJG) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Arthur J Gallagher & Co stock, see the AJG Stock Forecast page.

Arthur J. Gallagher Plans Investor Meeting for 2025

On September 4, 2025, Arthur J. Gallagher & Co. announced plans to host an investor meeting on September 18, 2024, with a webcast and presentation materials available online. The meeting will include a CFO Commentary with estimates for 2025 results, including the integration of AssuredPartners, Inc., and net after-tax cash flows from clean energy investments, highlighting the company’s strategic focus and potential impact on its operations.

The most recent analyst rating on (AJG) stock is a Buy with a $338.00 price target. To see the full list of analyst forecasts on Arthur J Gallagher & Co stock, see the AJG Stock Forecast page.

Arthur J. Gallagher Completes Acquisition of AssuredPartners

On August 18, 2025, Arthur J. Gallagher & Co. completed its acquisition of AssuredPartners, a leading U.S. insurance broker. The transaction, valued at $13.8 billion, was financed through previously disclosed equity and debt financing transactions. This acquisition is expected to expand Gallagher’s retail middle-market property/casualty and employee benefits focus across the U.S., deepen capabilities in niche practice groups, and enhance its presence in the U.K. and Ireland. The integration aims to deliver significant value to clients and shareholders, with anticipated double-digit adjusted EPS accretion.

The most recent analyst rating on (AJG) stock is a Buy with a $345.00 price target. To see the full list of analyst forecasts on Arthur J Gallagher & Co stock, see the AJG Stock Forecast page.

Arthur J. Gallagher Reports Strong Earnings and Growth

Arthur J. Gallagher’s recent earnings call presented a generally positive outlook, highlighting strong revenue and margin growth across its segments, alongside robust merger and acquisition (M&A) activity. However, the company did face challenges, particularly in the property insurance market, and expressed uncertainty regarding the completion of the Assured Partners acquisition.

Arthur J. Gallagher Reports Strong Q2 2025 Growth

Arthur J. Gallagher & Co., headquartered in Rolling Meadows, Illinois, is a global insurance brokerage, risk management, and consulting services firm operating in approximately 130 countries. The company is known for its extensive network of correspondent brokers and niche expertise in providing insurance and risk management advice.

Arthur J Gallagher & Co Q2 2025 Revenue Surge

On July 31, 2025, Arthur J. Gallagher & Co. announced its financial results for the second quarter ending June 30, 2025. The company reported an increase in brokerage revenue to $2,785.6 million from $2,376.3 million in the same quarter of the previous year, reflecting strong operational performance. The results indicate a positive trajectory for the company, potentially enhancing its market position and benefiting stakeholders.

The most recent analyst rating on (AJG) stock is a Buy with a $301.00 price target. To see the full list of analyst forecasts on Arthur J Gallagher & Co stock, see the AJG Stock Forecast page.