Fact based stock research
Arthur J. Gallagher (NYSE:AJG)
US3635761097
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Arthur J. Gallagher stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 43 (worse than 57% compared with investment alternatives), Arthur J. Gallagher (Insurance Brokers, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Arthur J. Gallagher are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 64, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 43, is a hold recommendation based on Arthur J. Gallagher's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Arthur J. Gallagher exhibits low value (Obermatt Value Rank of 17), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 64) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | USA |
Industry | Insurance Brokers |
Index | D.J. US Insurance, S&P 500 |
Size class | X-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Arthur J. Gallagher
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 5 |
|
21 |
|
18 |
|
17 |
|
GROWTH | ||||||||
GROWTH | 45 |
|
91 |
|
61 |
|
65 |
|
SAFETY | ||||||||
SAFETY | 42 |
|
64 |
|
64 |
|
64 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
47 |
|
42 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
55 |
|
86 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 43 (worse than 57% compared with investment alternatives), Arthur J. Gallagher (Insurance Brokers, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Arthur J. Gallagher are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 64, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 43, is a hold recommendation based on Arthur J. Gallagher's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Arthur J. Gallagher exhibits low value (Obermatt Value Rank of 17), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 64) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 5 |
|
21 |
|
18 |
|
17 |
|
GROWTH | ||||||||
GROWTH | 45 |
|
91 |
|
61 |
|
65 |
|
SAFETY | ||||||||
SAFETY | 42 |
|
64 |
|
64 |
|
64 |
|
COMBINED | ||||||||
COMBINED | 16 |
|
43 |
|
43 |
|
43 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 17 (worse than 83% compared with alternatives), Arthur J. Gallagher shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Arthur J. Gallagher. Price-to-Sales is 11 which means that the stock price compared with what market professionals expect for future profits is higher than 89% of comparable companies, indicating a low value concerning Arthur J. Gallagher's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 16, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Arthur J. Gallagher. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 16 and Dividend Yield, which is lower than 57% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 17, is a sell recommendation based on Arthur J. Gallagher's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Arthur J. Gallagher? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Arthur J. Gallagher? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Arthur J. Gallagher may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 15 |
|
19 |
|
12 |
|
11 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 10 |
|
21 |
|
20 |
|
16 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 6 |
|
13 |
|
15 |
|
16 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 34 |
|
43 |
|
44 |
|
43 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 5 |
|
21 |
|
18 |
|
17 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Arthur J. Gallagher shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Arthur J. Gallagher. Sales Growth has a value of 78 which means that currently professionals expect the company to grow more than 78% of its competitors. Profit Growth with a value of 50 and Capital Growth with a rank of 85 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 17, which means that stock returns have recently been below 83% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Arthur J. Gallagher has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Arthur J. Gallagher, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 41 |
|
74 |
|
89 |
|
78 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 38 |
|
37 |
|
51 |
|
50 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
77 |
|
10 |
|
85 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 61 |
|
77 |
|
65 |
|
17 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 45 |
|
91 |
|
61 |
|
65 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company Arthur J. Gallagher has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Arthur J. Gallagher is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Arthur J. Gallagher. Liquidity is at 38, meaning that the company generates less profit to service its debt than 62% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 24, meaning the company has an above-average debt-to-equity ratio. It has more debt than 76% of its competitors. Finally, Refinancing is at a rank of 35 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 65% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), Arthur J. Gallagher has a financing structure that is safer than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Arthur J. Gallagher because it may suffer significantly in case of future difficulties. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 55 |
|
10 |
|
25 |
|
24 |
|
REFINANCING | ||||||||
REFINANCING | 37 |
|
35 |
|
35 |
|
35 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 33 |
|
22 |
|
48 |
|
38 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 42 |
|
64 |
|
64 |
|
64 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
80 |
|
85 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
18 |
|
9 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
11 |
|
44 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
82 |
|
67 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
47 |
|
42 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for Arthur J. Gallagher from November 14, 2024.
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