AJG$255.86
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AI AJG Summary
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Powered by LiveAIOverall Analysis
BuyArthur J. Gallagher & Co. presents a mixed investment profile. Fundamentally strong with consistent growth and a robust balance sheet, complemented by positive thematic alignment in insurance brokerage and risk management. However, current technical indicators suggest caution due to a bearish short-term trend. The dividend yield is modest. Investors seeking stability and steady growth may find it attractive, but short-term traders might wait for a more favorable technical setup.
Thematic
Arthur J. Gallagher & Co. is well-positioned within key growth themes in the financial services sector, including insurance brokerage, risk management, and consulting services. Its diversified offerings cater to a wide range of industries, providing resilience and growth opportunities.
Fundamental
Arthur J. Gallagher & Co. demonstrates strong financial health with consistent revenue and earnings growth, healthy profit margins, and a solid balance sheet. The company manages its debt effectively and generates substantial free cash flow, supporting its operations and shareholder returns.
Technical
The stock is currently in a short-term downtrend, trading below key moving averages. While the long-term trend appears more stable, current momentum indicators suggest caution and potential for further downside before a significant recovery.
| Factor | Score |
|---|---|
| Insurance Brokerage & Risk Management | 90 |
| Digital Transformation in Finance | 70 |
| Global Economic Stability & Growth | 65 |
| Regulatory Landscape | 70 |
| Mergers & Acquisitions (M&A) Activity | 80 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 78 |
| Growth | 88 |
| Balance Sheet Health | 75 |
| Cash Flow | 85 |
| Dividend Yield | 50 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 60 |
| Support & Resistance | 50 |
| MACD | 45 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Positive Earnings Surprises
Arthur J. Gallagher & Co. (AJG) has consistently surpassed earnings per share (EPS) estimates in recent quarters. For example, in Q2 2025, reported EPS of $3.67 exceeded the estimate of $3.58 by 2.45%. This pattern suggests strong operational execution and management's ability to deliver better-than-expected results.
Reasonable P/E Ratio Considering Growth
The trailing P/E ratio (PE_TTM) of 47.55, while seemingly high, should be considered in conjunction with its earnings per share (EPS_TTM) of $6.50. The company's ability to consistently grow earnings may justify this multiple, especially when compared to industry peers or its historical valuation.
Bearish Points (7)
High P/S Ratios in Recent Quarters
The Price-to-Sales (PS) ratio for recent quarters (e.g., Q1 2025 at 23.7, Q4 2024 at 26.7) appears exceptionally high. This suggests that the market valuation is significantly ahead of its current revenue generation, potentially indicating overvaluation or very high growth expectations that may be difficult to sustain.
Mixed Revenue Growth Trends
While annual revenue shows growth (e.g., from $8.21 billion in 2021 to $11.55 billion in 2024), the quarterly revenue figures present a more mixed picture. For instance, Q4 2024 revenue of $2.72 billion is lower than Q1 2024 ($3.26 billion) and Q1 2025 ($3.73 billion), indicating potential seasonality or deceleration in growth depending on the specific reporting period.
Calendar
June 2025
6
Ex-Dividend Date
June 2025
20
Next Dividend Date
August 2025
1
Next Earnings Date
H: $2.40
A: $2.31
L: $1.69
H: 3.25B
A: 3.20B
L: 3.17B
Profile
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. The company was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
Seasonals
Price Target
336.94 USD
The 39 analysts offering 1 year price forecasts for AJG have a max estimate of 388.00 and a min estimate of 267.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
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