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AJG

S&P 500
Neutral · 52/100

Arthur J. Gallagher & Co.

Financials
Insurance Brokers

$209.08

2.3%

Updated Today 7:15 PM ET

Price — Past Year

▼ Down 32.5% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$54.99B

P/E

33.99x

Forward P/E (est.)

35.68x

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)

5.6%

Rating Score

52/100

Technical Analysis (Educational)
Research

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 $209.08, below its 50-day average ($210.68) and 200-day average ($243.67). Price below both averages is a downtrend — momentum is against buyers for now.

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 66 it is in neutral territory — neither stretched nor washed out.

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 $6.07 (~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 $199.67 (support) and sellers near $225.34 (resistance); its 52-week range is $190.75–$327.34. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.0× the 20-day average — about normal. 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.

Business Overview
Research

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 $54.99B.

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.

Revenue Growth
Research

4Y CAGR

14.2%

Revenue moved from $8.21B in 2021 to $13.94B in 2025, a 14.2% 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.

Profitability
Research

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.

Debt Analysis
Research

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.

Cash Flow Analysis
Research

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.

Valuation Analysis
Research

P/E

33.99x

P/S

3.96x

P/B

2.83x

EV / EBITDA

AJG trades at 34.0x trailing earnings (about 35.7x on estimated forward earnings), 4.0x sales, and 2.8x book value. Reverse-engineering today's price implies the market expects roughly 5.6% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
34.0xExpensive
Forward P/E
35.7xExpensive
P/S ratio
4.0xExpensive
Revenue growth
24.5%Strong
EPS growth
-4.7%Weak
Gross margin
45.9%Average
Net margin
10.8%Strong
ROE
6.9%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How AJG stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.

In the Financials sector (76 S&P 500 companies), AJG ranks #62 of 76 by our overall rating. It trades at a premium versus the sector on earnings (34x P/E vs. 15.2x median) with a lower return on equity (6.9% vs. 15.3%) and faster revenue growth (24.5% vs. 9.1%).

P/E vs sector

34x

median 15.2x

ROE vs sector

6.9%

median 15.3%

Growth vs sector

24.5%

median 9.1%

Sector rank

#62

of 76 by rating

CompanyP/ERev Gr.Rating
AJGThis stock34x24.5%Neutral· 52
AON17.2x6.9%Favorable· 68
MRSH19.8x9.9%Neutral· 55
WTW14.5x0.9%Favorable· 61
BRO17.4x29.3%Favorable· 65
ERIE18.2x4.8%Favorable· 61
MET15.2x5.3%Neutral· 42
ALL4.7x4.4%Favorable· 63
Financials median15.2x9.1%65/100

Valuation vs. quality map

sector medianAONMRSHWTWBROERIEMETALLAJGP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Financials companies by sub-industry and size. Sector median is across all 76 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$364.36$619.42

vs. $209.08 today · expected CAGR 12%24%

Metric20262027202820292030
Revenue$17.43B$21.78B$27.23B$34.04B$42.55B
Net income$1.92B$2.40B$3.00B$3.74B$4.68B
EPS$7.46$9.33$11.66$14.57$18.22
Share price (low)$149.24$186.55$233.19$291.49$364.36
Share price (high)$253.71$317.14$396.43$495.53$619.42
CAGR (low–high)-29% / 21%-6% / 23%4% / 24%9% / 24%12% / 24%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

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.
Bear Case

The case against AJG:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 34.0x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

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 34.0x earnings, which our model scores Neutral (52/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.