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 -12.68%, its profits have risen by 13.6%
4
Below par performance in long term as well as near term
- Along with generating -12.68% 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.
-32.5%
-0.12
25.00%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.11%
EBIT Growth (5y)
19.83%
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
45.27%
Pledged Shares
0
Institutional Holding
96.33%
ROCE (avg)
31.17%
ROE (avg)
11.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
2.28
EV to EBIT
20.28
EV to EBITDA
14.09
EV to Capital Employed
2.37
EV to Sales
3.72
PEG Ratio
NA
Dividend Yield
1.24%
ROCE (Latest)
11.67%
ROE (Latest)
6.57%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 2.86
INTEREST COVERAGE RATIO(Q)
Highest at 985.44
RAW MATERIAL COST(Y)
Fallen by 0.19% (YoY
NET SALES(Q)
Highest at USD 4,758 MM
PRE-TAX PROFIT(Q)
Highest at USD 1,060 MM
NET PROFIT(Q)
Highest at USD 835.41 MM
EPS(Q)
Highest at USD 3.16
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 2,015.2 MM
INTEREST(9M)
At USD 479.8 MM has Grown at 35.84%
ROCE(HY)
Lowest at 6.99%
Here's what is working for Arthur J. Gallagher & Co.
Interest Coverage Ratio
Highest at 985.44
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 2.86 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 4,758 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 4,758 MM has Grown at 27.65%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 1,060 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 835.41 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 3.16
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by 0.19% (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 479.8 MM has Grown at 35.84%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 2,015.2 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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