Arthur J. Gallagher & Co. (AJG) Stock Analysis
Verdict: WATCH (do not buy)
AJG offers defensive M&A revenue growth, but a 39.8x P/E and recent EPS misses cap short-term upside toward its $285 target.
Investment score: 52/100
Analysis as of
Is Arthur J. Gallagher & Co. stock worth reviewing? The TradeMates thesis
The model assesses Arthur J. Gallagher & Co. (AJG) as a HOLD. While revenue expansion (+26.33%) and defensive characteristics (Beta 0.51) provide balance sheet stability, a demanding 39.84x P/E valuation relative to peer medians (~27.5x) limits short-term re-rating potential.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 35/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Arthur J. Gallagher & Co. opportunities and risks
What speaks for AJG
- Programmatic M&A Roll-Up Engine
What speaks against AJG
- Valuation Multiple Compression Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| AJG | 39.8x | 4.0x | 15.9x | 74.6% | 10.0% | 3.7% |
| MRSH | 21.4x | 3.0x | 18.2x | 42.4% | 14.2% | 5.7% |
| BRO | 18.2x | 3.2x | 12.0x | 59.0% | 17.6% | 6.8% |
| RYAN | 42.4x | 1.6x | 11.3x | 81.1% | 5.8% | 9.5% |
| HGTY | 33.6x | 3.4x | 62.6x | 75.2% | 1.8% | 5.8% |
| BWIN | n/a | 1.5x | 82.7x | 9.6% | -4.7% | 1.7% |
| Peer median | 21.4x | 3.0x | 18.2x | 59.0% | 5.8% | 5.8% |
Frequently asked questions about Arthur J. Gallagher & Co. (AJG)
Is AJG stock a good investment?
The TradeMates model rates Arthur J. Gallagher & Co. as WATCH (do not buy) with an investment score of 52/100. The model assesses Arthur J. Gallagher & Co. (AJG) as a HOLD. While revenue expansion (+26.33%) and defensive characteristics (Beta 0.51) provide balance sheet stability, a demanding 39.84x P/E valuation relative to peer medians (~27.5x) limits short-term re-rating potential. This is algorithmic model output, not personal investment advice.
Is AJG stock a buy?
The TradeMates model verdict for AJG is WATCH (do not buy) with an investment score of 52/100. Treat this as a model signal to review, not a personal buy recommendation.