ScoreWhy is Arthur J. Gallagher & Co. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 11.71%
2
Negative results in Jun 25
- INTEREST(HY) At USD 317 MM has Grown at 69.97%
- INTEREST COVERAGE RATIO(Q) Lowest at 539.22
3
With ROE of 7.19%, it has a very expensive valuation with a 3.77 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -20.80%, its profits have risen by 13.6%
4
Below par performance in long term as well as near term
- Along with generating -20.80% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Arthur J. Gallagher & Co. should be less than 10%
- Overall Portfolio exposure to Capital Markets should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arthur J. Gallagher & Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arthur J. Gallagher & Co.
-20.13%
-0.15
25.02%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.57%
EBIT Growth (5y)
25.09%
EBIT to Interest (avg)
6.16
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
20.67%
Dividend Payout Ratio
36.92%
Pledged Shares
0
Institutional Holding
94.97%
ROCE (avg)
31.17%
ROE (avg)
11.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
52
Industry P/E
Price to Book Value
3.77
EV to EBIT
27.21
EV to EBITDA
20.04
EV to Capital Employed
12.01
EV to Sales
5.65
PEG Ratio
NA
Dividend Yield
0.85%
ROCE (Latest)
44.15%
ROE (Latest)
7.19%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 2.79
RAW MATERIAL COST(Y)
Fallen by 0.84% (YoY
CASH AND EQV(HY)
Highest at USD 31,028.3 MM
-8What is not working for the Company
INTEREST(HY)
At USD 317 MM has Grown at 69.97%
INTEREST COVERAGE RATIO(Q)
Lowest at 539.22
Here's what is working for Arthur J. Gallagher & Co.
Dividend per share
Highest at USD 2.79 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Cash and Eqv
Highest at USD 31,028.3 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 0.84% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Arthur J. Gallagher & Co.
Interest
At USD 317 MM has Grown at 69.97%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 539.22
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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