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Arthur J. Gallagher & Co. (AJG) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

Arthur J. Gallagher & Co.

AJGMarket cap $58BPrice $227.1

Country🇺🇸United States

SectorFinancials

IndustryInsurance

Operates as an insurance broker and consultant, connecting businesses with coverage while earning commissions on premiums. Handles over $40 billion in annual premiums and has grown through 650+ acquisitions since going public.

In Bastion Portfolios?

52W Return-19%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+16%8

Revenue Forecast

Rev CAGR (1y)+28%9

Rev CAGR (3y)+15%8

Rev CAGR (5y)+12%8

Earnings Forecast

EPS Growth Y+1+130%10

EPS Growth Y+2+15%7

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin20%7

Net Income Margin10%6

Free Cash Flow Margin15%7

Debt

Net Debt/EBITDA2.83

Efficiency

ROE7%3

ROA2%4

Earnings Stability77

GEAR+STRONG73

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)165

P/E Ratio (Forward 3y)135

P/BV2.56

EV Multiples

EV/EBITDA Fwd135

EV/EBIT Fwd155

Yield

Free Cash Flow Yield0.0%3

Dividend Yield1.2%4

Momentum

Short term

1 month return-10%3

3 month return-11%3

YTD return-11%3

Mid term

Price vs 52wHigh74%4

1 year return-25%2

Long term

3 year return+1%3

5 year return+54%6

Risk Shield

Price Risk

Beta0.48

Volatility32%6

Free Cash Flow

Free Cash Flow Margin15%7

Free Cash Flow Yield0.0%3

Quality

ROCE8%4

Earnings Stability77

Net Debt/EBITDA2.83

02Growth

Is it actually growing, and how fast?

AJGArthur J. Gallagher &

Revenue FY25$13.9B

GROWTH RATING↗

STRONG83 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+16%8

Revenue, next 1Y+28%9

Revenue, next 3Y, CAGR+15%8

Revenue, next 5Y, CAGR+12%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+130%10

EPS growth, FY27E+15%7

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 83% of companies worldwide.

Revenue grew 16%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 15%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 16%/yr over the last 3 years and is set to keep growing around 15%/yr.

The runway holds up: revenue is set to grow 12%/yr over five years.8/10

Earnings are set to grow in step with sales (EPS about 15%/yr vs revenue 15%/yr).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK17 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%3

3-month return-11%3

YTD return-11%3

MID & LONG-TERM▾SCORE

% of 52-week high74%4

1-year return-25%2

3-year return+1%3

5-year return+54%6

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+0.7% over three years and +54% over five), roughly average for the market.

WEAKNESSES

It's down 25% over the past year, now 26% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-11%) and so far this year (-11%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Arthur J. Gallagher. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

AJGArthur J. Gallagher &

Revenue FY25$13.9B

GROWTH RATING↗

STRONG83 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+16%8

Revenue, next 1Y+28%9

Revenue, next 3Y, CAGR+15%8

Revenue, next 5Y, CAGR+12%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+130%10

EPS growth, FY27E+15%7

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 83% of companies worldwide.

Revenue grew 16%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 15%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 16%/yr over the last 3 years and is set to keep growing around 15%/yr.

The runway holds up: revenue is set to grow 12%/yr over five years.8/10

Earnings are set to grow in step with sales (EPS about 15%/yr vs revenue 15%/yr).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK17 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%3

3-month return-11%3

YTD return-11%3

MID & LONG-TERM▾SCORE

% of 52-week high74%4

1-year return-25%2

3-year return+1%3

5-year return+54%6

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+0.7% over three years and +54% over five), roughly average for the market.

WEAKNESSES

It's down 25% over the past year, now 26% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-11%) and so far this year (-11%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Arthur J. Gallagher. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community