A Business at a Glance
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Arthur J. Gallagher & Co.
AJG
$64.5B
Mkt Cap
$247.77
+2.30%
Arthur J. Gallagher & Co. (AJG) has a current P/E ratio of 43.2, compared to its historical median P/E of 31.5. The stock is currently considered Expensive based on its historical valuation range.
Arthur J. Gallagher & Co. (AJG) has a 5-year average return on invested capital (ROIC) of 6.2%. This is below average and may indicate limited pricing power.
Arthur J. Gallagher & Co. (AJG) has a market capitalization of $63.7B. It is classified as a large-cap stock.
Yes, Arthur J. Gallagher & Co. (AJG) pays a dividend with a trailing twelve-month yield of 1.07%.
Based on historical P/E analysis, Arthur J. Gallagher & Co. (AJG) appears expensive. The current P/E of 43.2 is 37% above its historical median of 31.5. The estimated fair value CAGR (P/E method) is 6.9%.
Arthur J. Gallagher & Co. (AJG) operates in the Insurance Agents, Brokers & Service industry, within the Financials sector.
Arthur J. Gallagher & Co. (AJG) reported annual revenue of $13.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Arthur J. Gallagher & Co. is the world's third-largest insurance broker and risk manager, operating through three segments: brokerage (87% of 2025 revenues), risk management (13%), and corporate. The brokerage segment provides insurance and reinsurance placements, risk management consulting, and employee benefit program administration to commercial entities, nonprofits, public sector organizations, and individuals through a network of over 650 offices in the U.S. and approximately 400 offices across 60 countries, with specialized expertise organized into niche practice groups serving industries such as aviation, healthcare, technology, and real estate. The risk management segment, operating through Gallagher Bassett, delivers third-party claims settlement and administration services primarily to Fortune 1000 companies, larger middle-market firms, nonprofits, and underwriting enterprises, with approximately 59% of revenues from workers' compensation claims, 34% from general and commercial auto liability, and 7% from property claims. The company generates approximately 67% of revenues domestically and 33% internationally, primarily from Australia, Canada, New Zealand, and the U.K., earning revenues through commissions, fees, supplemental and contingent revenues, and interest income rather than assuming underwriting risk. Gallagher's competitive advantages include its specialized niche expertise, data analytics capabilities (including Gallagher Drive and SmartMarket platforms), ability to address client needs across the insurance value chain, and a relationship-driven advisory model that complements rather than competes with insurance carriers.
【Steady organic growth trajectory】 Management expects 2026 to deliver another excellent year of organic growth, with brokerage segment organic growth forecasted at approximately 5.5% and risk management segment organic growth at around 7%, reflecting confidence in client retention, strong new business wins, and the successful integration of the AssuredPartners acquisition. The company anticipates a persistent buyer's market for reinsurance through 2026 absent significant loss activity, while medical cost inflation is expected to remain elevated in the high single digits, driving demand for innovative benefits solutions. Casualty rate increases are assumed to remain in the 7%-8% range, and property pricing is expected to continue declining at rates similar to 2025, with these assumptions embedded in the full-year organic growth outlook. Capital deployment remains a strategic priority, with management noting approximately $10 billion in available liquidity over the next two years to fund M&A before using stock, while the AssuredPartners integration is tracking to plan with synergy targets on track and cultural alignment exceeding expectations.
| Metric | Target | Period |
|---|---|---|
| Brokerage segment organic growth | approximately 5.5% | FY2026 |
| Risk management segment organic growth | around 7% | FY2026 |
| Risk management adjusted EBITDA margin | 21%-22% | FY2026 |
| Brokerage segment underlying margin expansion | 40-60 basis points | FY2026 |
Brokerage segment organic growth (FY2026): “We continue to see 2026 Brokerage segment organic growth of around 5.5%.”
Risk management segment organic growth (FY2026): “Looking to full year 2026, we continue to see organic around 7%.”
Risk management adjusted EBITDA margin (FY2026): “As we looked forward, we see full year 2026 margins in the 21%-22% range.”
Brokerage segment underlying margin expansion (FY2026): “we're still forecasting full year 40-60 basis points of underlying margin expansion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 15.0B | 13.9B | 11.6B | 10.1B | 8.6B | 8.2B |
| Net Income | 1.6B | 1.5B | 1.5B | 970M | 1.1B | 907M |
| EPS | $6.28 | $5.74 | $6.50 | $4.42 | $5.19 | $4.37 |
| Free Cash Flow | 1.9B | 1.8B | 2.4B | 1.8B | 1.2B | 1.3B |
| ROIC | 0.0% | 4.4% | 5.8% | 6.0% | 7.7% | 7.3% |
| Gross Margin | - | 75.7% | 77.5% | 72.8% | 76.4% | 64.3% |
| Debt/Equity | 0.53 | 0.55 | 0.64 | 0.71 | 0.64 | 0.71 |
| Dividends/Share | $2.65 | $2.60 | $2.40 | $2.20 | $2.04 | $1.92 |
| Operating Income | 0 | 1.9B | 1.9B | 1.2B | 1.3B | 975M |
| Operating Margin | 0.0% | 13.4% | 16.2% | 11.8% | 15.5% | 11.9% |
| ROE | 6.8% | 6.9% | 9.5% | 9.7% | 12.6% | 12.3% |
| Shares Outstanding | 257M | 260M | 225M | 219M | 215M | 208M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.6B | 5.4B | 5.6B | 6.2B | 6.9B | 7.2B | 7.0B | 8.2B | 8.6B | 10.1B | 11.6B | 13.9B | 15.0B |
| Gross Margin | 77.1% | 54.1% | 74.8% | 73.4% | 73.8% | 59.6% | 66.8% | 64.3% | 76.4% | 72.8% | 77.5% | 75.7% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.2B | 2.4B | 2.5B | 2.7B | 3.0B | 3.3B | 3.5B | 3.9B | 4.8B | 5.7B | 6.5B | 7.8B | 8.5B |
| EBIT | 292M | 294M | 334M | 360M | 479M | 626M | 871M | 975M | 1.3B | 1.2B | 1.9B | 1.9B | 0 |
| Op. Margin | 6.3% | 5.4% | 6.0% | 5.8% | 6.9% | 8.7% | 12.4% | 11.9% | 15.5% | 11.8% | 16.2% | 13.4% | 0.0% |
| Net Income | 303M | 357M | 397M | 481M | 634M | 669M | 819M | 907M | 1.1B | 970M | 1.5B | 1.5B | 1.6B |
| Net Margin | 6.6% | 6.6% | 7.1% | 7.8% | 9.1% | 9.3% | 11.7% | 11.0% | 13.0% | 9.6% | 12.7% | 10.7% | 10.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.0M | 19M | 66M | 66M |
| Returns on Capital | |||||||||||||
| ROIC | 7.3% | 6.4% | 6.9% | 7.6% | 8.7% | 8.1% | 8.4% | 7.3% | 7.7% | 6.0% | 5.8% | 4.4% | 0.0% |
| ROE | 11.4% | 10.4% | 11.0% | 12.3% | 14.5% | 13.9% | 14.4% | 12.3% | 12.6% | 9.7% | 9.5% | 6.9% | 6.8% |
| ROA | 3.6% | 3.4% | 3.2% | 3.4% | 4.1% | 3.7% | 3.9% | 3.3% | 3.1% | 2.2% | 2.5% | 2.2% | 2.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 437M | 686M | 650M | 854M | 765M | 1.2B | 1.8B | 1.4B | 1.4B | 2.0B | 2.6B | 1.9B | 2.0B |
| Free Cash Flow | 355M | 587M | 432M | 725M | 641M | 1.1B | 1.7B | 1.3B | 1.2B | 1.8B | 2.4B | 1.8B | 1.9B |
| Owner Earnings | 357M | 581M | 531M | 716M | 624M | 1.0B | 1.6B | 1.2B | 1.2B | 1.8B | 2.4B | 1.7B | 464M |
| CapEx | 82M | 99M | 218M | 129M | 124M | 139M | 99M | 129M | 183M | 194M | 142M | 145M | 153M |
| Maint. CapEx | 69M | 94M | 104M | 121M | 128M | 140M | 145M | 151M | 145M | 165M | 178M | 206M | 1.5B |
| Growth CapEx | 12M | 5.1M | 114M | 8.1M | 0 | 0 | 0 | 0 | 38M | 29M | 0 | 0 | 0 |
| D&A | 69M | 94M | 104M | 121M | 128M | 140M | 145M | 151M | 145M | 165M | 178M | 206M | 1.5B |
| CapEx/OCF | 18.7% | 14.4% | 33.5% | 15.1% | 16.3% | 11.7% | 5.5% | 9.2% | 13.1% | 9.5% | 5.5% | 7.5% | 7.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 223M | 258M | 272M | 283M | 302M | 321M | 347M | 392M | 430M | 474M | 525M | 667M | 681M |
| Dividend Yield | 3.9% | 3.9% | 3.8% | 3.0% | 2.6% | 2.1% | 1.9% | 1.4% | 1.2% | 1.0% | 0.9% | 0.9% | 1.1% |
| Share Buybacks | 0 | 0 | 101M | 18M | 11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | 1.3% | 0.2% | 0.1% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 11M | 11M | 15M | 17M | 14M | 14M | 14M | 13M | 24M | 31M | 42M | 49M | 52M |
| Debt Repayment | 100M | 24M | 50M | 300M | 33M | 3.9M | 1.3M | 21M | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 2.0B | 1.8B | 2.2B | 2.3B | 2.8B | 3.8B | 3.7B | 5.7B | 5.1B | 6.7B | -2.1B | 11.3B | 11.3B |
| Cash & Equiv. | 314M | 480M | 546M | 681M | 607M | 605M | 665M | 403M | 738M | 971M | 15.0B | 1.4B | 1.4B |
| Long-Term Debt | 2.1B | 2.1B | 2.1B | 2.7B | 3.1B | 3.8B | 4.3B | 5.8B | 5.6B | 7.0B | 12.7B | 12.1B | 12.1B |
| Debt/Equity | 0.70 | 0.64 | 0.76 | 0.70 | 0.77 | 0.86 | 0.70 | 0.71 | 0.64 | 0.71 | 0.64 | 0.55 | 0.53 |
| Interest Coverage | 3.3 | 2.8 | 3.0 | 2.9 | 3.5 | 3.5 | 4.4 | 4.3 | 5.2 | 4.0 | 4.9 | 2.9 | 2.9 |
| Equity | 3.2B | 3.6B | 3.6B | 4.2B | 4.5B | 5.2B | 6.2B | 8.5B | 9.1B | 10.8B | 20.2B | 23.3B | 23.8B |
| Total Assets | 10.0B | 10.9B | 13.5B | 14.9B | 16.3B | 19.6B | 22.3B | 33.2B | 38.4B | 51.6B | 64.3B | 70.7B | 78.3B |
| Total Liabilities | 6.7B | 7.2B | 7.8B | 10.6B | 11.8B | 14.4B | 16.1B | 24.8B | 29.2B | 40.8B | 44.1B | 47.3B | 54.5B |
| Intangibles | 1.8B | 1.7B | 1.6B | 1.6B | 1.8B | 2.3B | 2.4B | 4.0B | 3.4B | 4.6B | 4.5B | 10.7B | 10.4B |
| Retained Earnings | 676M | 775M | 916M | 1.2B | 1.6B | 1.9B | 2.4B | 2.9B | 3.6B | 4.1B | 5.0B | 5.8B | 6.4B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.97 | 2.06 | 2.22 | 2.64 | 3.40 | 3.52 | 4.20 | 4.37 | 5.19 | 4.42 | 6.50 | 5.74 | 6.28 |
| Owner EPS | 2.32 | 3.35 | 2.97 | 3.93 | 3.35 | 5.46 | 8.46 | 5.92 | 5.69 | 8.37 | 10.50 | 6.44 | 1.81 |
| Book Value | 20.97 | 21.01 | 20.12 | 23.23 | 24.15 | 27.13 | 31.73 | 41.00 | 42.59 | 49.10 | 89.54 | 89.60 | 92.55 |
| Cash Flow/Share | 2.83 | 3.96 | 3.63 | 4.69 | 4.11 | 6.27 | 9.27 | 6.71 | 6.47 | 9.26 | 11.48 | 7.42 | 12.11 |
| Dividends/Share | 1.44 | 1.48 | 1.52 | 1.56 | 1.64 | 1.72 | 1.80 | 1.92 | 2.04 | 2.20 | 2.40 | 2.60 | 2.65 |
| Shares Out. | 154.0M | 173.2M | 178.7M | 182.3M | 186.3M | 190.0M | 195.0M | 207.5M | 214.7M | 219.5M | 225.1M | 260.3M | 256.9M |
| Valuation | |||||||||||||
| P/E Ratio | 19.6 | 16.9 | 20.2 | 21.5 | 19.5 | 25.1 | 27.8 | 37.2 | 35.2 | 49.7 | 43.7 | 45.6 | 39.5 |
| P/FCF | 16.8 | 10.3 | 18.6 | 14.3 | 19.3 | 15.9 | 13.3 | 26.7 | 32.5 | 26.2 | 26.2 | 38.1 | 34.2 |
| EV/EBIT | 22.2 | 21.6 | 24.9 | 28.2 | 26.4 | 27.2 | 25.7 | 34.2 | 28.0 | 36.9 | 27.5 | 31.7 | N/A |
| Price/Book | 1.8 | 1.7 | 2.2 | 2.4 | 2.7 | 3.3 | 3.7 | 4.0 | 4.3 | 4.5 | 3.2 | 2.9 | 2.7 |
| Price/Sales | 1.2 | 1.2 | 1.3 | 1.5 | 1.7 | 2.1 | 2.6 | 3.4 | 4.2 | 4.6 | 5.1 | 5.6 | 4.3 |
| FCF Yield | 6.0% | 9.7% | 5.4% | 7.0% | 5.2% | 6.3% | 7.5% | 3.7% | 3.1% | 3.8% | 3.8% | 2.6% | 2.9% |
| Market Cap | 6.0B | 6.0B | 8.0B | 10.4B | 12.4B | 16.8B | 22.7B | 33.8B | 39.2B | 48.2B | 63.9B | 68.1B | 63.7B |
| Avg. Price | 37.09 | 37.90 | 39.77 | 51.56 | 63.51 | 78.83 | 94.23 | 135.33 | 166.66 | 209.61 | 261.95 | 301.24 | 247.77 |
| Year-End Price | 38.70 | 34.80 | 44.91 | 56.84 | 66.29 | 88.34 | 116.66 | 162.74 | 182.78 | 219.57 | 284.05 | 261.48 | 247.77 |
Arthur J. Gallagher & Co. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Arthur J. Gallagher & Co. trades at 43.2x trailing earnings, compared to its 15-year median P/E of 31.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 35.7x vs a median of 22.7x. The company's 5-year average ROIC is 6.2% with a gross margin of 73.3%. Total shareholder yield (dividends) is 1.1%. At current prices, the estimated annualized return to fair value is +5.8%.
Arthur J. Gallagher & Co. (AJG) has a net profit margin of 10.7%. This is a healthy margin.
Arthur J. Gallagher & Co. (AJG) generated $1.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Arthur J. Gallagher & Co. (AJG) has a debt-to-equity ratio of 0.55. This indicates moderate leverage.
Arthur J. Gallagher & Co. (AJG) reported earnings per share (EPS) of $5.74 in its most recent fiscal year.
Arthur J. Gallagher & Co. (AJG) has a return on equity (ROE) of 6.9%. This indicates moderate shareholder returns.
Arthur J. Gallagher & Co. (AJG) has a 5-year average gross margin of 73.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for Arthur J. Gallagher & Co. (AJG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Arthur J. Gallagher & Co. (AJG) has a book value per share of $89.60, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to deliver another excellent year of organic growth, with brokerage segment organic growth forecasted at approximately 5.5% and risk management segment organic growth at around 7%, reflecting confidence in client retention, strong new business wins, and the successful integration of the AssuredPartners acquisition. The company anticipates a persistent buyer's market for reinsurance through 2026 absent significant loss activity, while medical cost inflation is expected to remain elevated in the high single digits, driving demand for innovative benefits solutions. Casualty rate increases are assumed to remain in the 7%-8% range, and property pricing is expected to continue declining at rates similar to 2025, with these assumptions embedded in the full-year organic growth outlook. Capital deployment remains a strategic priority, with management noting approximately $10 billion in available liquidity over the next two years to fund M&A before using stock, while the AssuredPartners integration is tracking to plan with synergy targets on track and cultural alignment exceeding expectations.
Based on recent SEC filings and earnings calls, Arthur J. Gallagher & Co. (AJG) has provided the following forward guidance: Brokerage segment organic growth: approximately 5.5% (FY2026); Risk management segment organic growth: around 7% (FY2026); Risk management adjusted EBITDA margin: 21%-22% (FY2026); Brokerage segment underlying margin expansion: 40-60 basis points (FY2026).