1.68%
5.35%
6.34%
5.48%
28.80%
89.33%
191.54%
AI Spotlight on AJG
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.
Market Data
| Last Price | 299.03 |
| Change Percentage | 1.68% |
| Open | 297.07 |
| Previous Close | 294.1 |
| Market Cap ( Millions) | 74699 |
| Volume | 1641559 |
| Year High | 316.72 |
| Year Low | 227.43 |
| M A 50 | 291.85 |
| M A 200 | 276.53 |
Financial Ratios
| FCF Yield | 3.20% |
| Dividend Yield | 0.80% |
| ROE | 10.23% |
| Debt / Equity | 70.40% |
| Net Debt / EBIDTA | 221.59% |
| Price To Book | 5.38 |
| Price Earnings Ratio | 55.94 |
| Price To FCF | 31.22 |
| Price To sales | 6.67 |
| EV / EBITDA | 27.47 |
News
- 00:30 - Arthur J. Gallagher (AJG) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
- Jan -30 - Arthur J. Gallagher (AJG) Q4 Earnings and Revenues Top Estimates
- Jan -30 - Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2024 Financial Results
- Jan -29 - Arthur J. Gallagher & Co. Increases Cash Dividend to $0.65 per Share
- Jan -27 - Arthur J. Gallagher Set to Report Q4 Earnings: Is a Beat in Store?
- Jan -21 - L.A. Wildfires: 3 Insurance Stocks Standing Strong Amid Recovery
- Jan -10 - Arthur J. Gallagher & Co. Acquires Wealth Management Partners Pty Ltd
- Jan -09 - Arthur J. Gallagher & Co. Announces Fourth Quarter 2024 Earnings Release And Conference Call Date
- Jan -09 - Arthur J. Gallagher upgraded to Market Perform at Keefe Bruyette
- Jan -09 - Compelling Reasons to Hold on to Arthur J. Gallagher Stock for Now
- Jan -08 - Arthur J. Gallagher To Benefit From AssuredPartners Acquisition In 2025, Says Bullish Analyst
- Jan -06 - Arthur J. Gallagher & Co. Acquires Encore Group
- Dec -31 - Zacks Industry Outlook Brown and Brown, Marsh & McLennan, Arthur J. Gallagher & Co and Willis Towers Watson
- Dec -30 - 4 Stocks to Watch From the Prospering Insurance Brokerage Industry
- Dec -27 - Arthur J. Gallagher & Co. Acquires BMR Insurance
- Dec -26 - Arthur J. Gallagher & Co. Acquires Afina Insurance Advisors, Inc.
- Dec -19 - Arthur J. Gallagher Sustains Its Acquisition Spree, Bolsters Portfolio
- Dec -19 - Arthur J. Gallagher & Co. Acquires Durham & Bates Agencies, Inc.
- Dec -18 - Arthur J. Gallagher & Co. Acquires DMc Insurance Partners
- Dec -11 - Arthur J. Gallagher & Co. Announces Closing of Public Offering of Common Stock
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Brokerage
Expected Growth : 12 %
What the company do ?
Arthur J. Gallagher & Co.'s brokerage provides insurance brokerage and consulting services to businesses and individuals, offering risk management solutions and insurance products.
Why we expect these perspectives ?
Arthur J. Gallagher & Co.'s 12% brokerage growth is driven by increasing demand for risk management and insurance services, expansion into new markets, strategic acquisitions, and a strong sales force. Additionally, the company's investments in digital capabilities and data analytics have enhanced its client offerings, contributing to the growth.
Segment n°2 -> Risk Management
Expected Growth : 10 %
What the company do ?
Arthur J. Gallagher & Co.'s Risk Management provides strategic guidance to identify, assess, and mitigate risks, ensuring business resilience and informed decision-making.
Why we expect these perspectives ?
Arthur J. Gallagher & Co.'s 10% growth in Risk Management is driven by increasing demand for risk assessment and mitigation services, expansion into new geographies, strategic acquisitions, and a growing need for cyber risk and employee benefits consulting. Additionally, the company's investments in digital capabilities and data analytics are enhancing its service offerings and driving growth.
Segment n°3 -> Corporate Segment
Expected Growth : 9 %
What the company do ?
The Corporate Segment of Arthur J. Gallagher & Co. provides brokerage services, including full-service risk management, property/casualty brokerage, and human resource consulting to large corporate clients.
Why we expect these perspectives ?
Arthur J. Gallagher & Co.'s Corporate Segment growth of 9% is driven by increasing demand for risk management and insurance brokerage services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on digital transformation, data analytics, and client-centric approach have contributed to its growth.
Arthur J. Gallagher & Co. Products
| Product Range | What is it ? |
|---|---|
| Risk Management | Arthur J. Gallagher & Co. provides risk management services to help clients identify, assess, and mitigate risks to their business. |
| Insurance Brokerage | Gallagher offers insurance brokerage services, providing clients with access to a wide range of insurance products and carriers. |
| Consulting | Gallagher's consulting services provide clients with expert advice on benefits, compensation, and human resources management. |
| Claims Advocacy | Gallagher's claims advocacy services help clients navigate the claims process, ensuring fair and timely resolution of claims. |
| Human Capital Consulting | Gallagher's human capital consulting services provide clients with strategic guidance on talent management, organizational design, and leadership development. |
| Benefits and HR Consulting | Gallagher's benefits and HR consulting services provide clients with expert guidance on employee benefits, compensation, and human resources management. |
Arthur J. Gallagher & Co.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Arthur J. Gallagher & Co. is medium due to the presence of alternative insurance brokers and agents. However, the company's strong brand reputation and diversified product offerings mitigate this threat to some extent.
Bargaining Power Of Customers
The bargaining power of customers is low for Arthur J. Gallagher & Co. due to the company's large customer base and diversified revenue streams. Additionally, the company's strong relationships with its clients and its ability to provide customized insurance solutions reduce the bargaining power of customers.
Bargaining Power Of Suppliers
The bargaining power of suppliers is medium for Arthur J. Gallagher & Co. due to the company's dependence on a few large insurance carriers. However, the company's strong relationships with its suppliers and its ability to negotiate favorable terms mitigate this threat to some extent.
Threat Of New Entrants
The threat of new entrants is low for Arthur J. Gallagher & Co. due to the high barriers to entry in the insurance brokerage industry. The company's strong brand reputation, large customer base, and diversified product offerings make it difficult for new entrants to gain a foothold in the market.
Intensity Of Rivalry
The intensity of rivalry is high for Arthur J. Gallagher & Co. due to the highly competitive nature of the insurance brokerage industry. The company faces intense competition from other large insurance brokers and agents, which can lead to pricing pressure and reduced profit margins.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 43.56% |
| Debt Cost | 4.38% |
| Equity Weight | 56.44% |
| Equity Cost | 7.42% |
| WACC | 6.09% |
| Leverage | 77.19% |
Arthur J. Gallagher & Co. : Quality Control
Arthur J. Gallagher & Co. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| COF | Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and … |
| BRO | Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. It operates through four segments: … |
| AMP | Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & … |
| MET | MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and … |
| MMC | Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Ameriprise Financial
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1-Year Total Return ->
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MetLife
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Capital One
A-Score
1-Year Total Return ->
4
Brown & Brown
A-Score
1-Year Total Return ->
5
Marsh McLennan
A-Score
1-Year Total Return ->
6
