# Arthur J. Gallagher & Co. (AJG) — Stock CV

Arthur J. Gallagher & Co. is a $59.6B financial services company. Revenue grew 26.3% over the last year, and it keeps 10¢ of every dollar of sales as profit. It trades at 38.0× earnings — around the middle of its own history.

> Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies. The company's risk management segment provides third-party claims adjustment to companies that choose to self-insure.

## Identity

- **Ticker**: AJG
- **Sector**: Financial Services
- **Industry**: Insurance Agents, Brokers & Service
- **Headquarters**: ROLLING MEADOWS, IL
- **Employees**: 72 000
- **Website**: https://www.ajg.com
- **Market cap**: $59.6B
- **Last price**: $232.47
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $15.8B
- **Net income**: $1.57B
- **Free cash flow**: $2.29B
- **Net debt**: $11.3B
- **P/E**: 38.0
- **Revenue growth (YoY)**: 26.3%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 64 |
| Growth | 77 |
| Profitability | 43 |
| Health | 37 |
| Quality | 80 |
| Moat | 68 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +26.3% YoY
- [x] Profitable — $1.57B TTM
- [x] Profit growing — +3.4% YoY
- [x] Generates cash — $2.29B TTM
- [x] Debt under control — ~5.0y of cash flow to repay
- [x] Established company — $59.6B market cap
- [ ] Not printing shares — +33.5% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 1.0 — distress
- [x] Pays a dividend — yield 1.16%
- [x] Valuation not extreme — P/E 38.0

## Experience (career milestones)

- **FY2025** — Best year on record: $1.49B net income
- **2025** — Gallagher acquired AssuredPartners, a U.S. insurance broker, for $13.45 billion ($12.45 billion net…
- **FY2024** — Revenue crossed $10B: $11.6B for the year
- **FY2024** — Became debt-free: cash now exceeds total debt
- **2020** — Gallagher acquired Affiliated Benefit Consultants, a benefits consulting firm headquartered in Oak…
- **FY2019** — Positive free cash flow every year since: 7-year streak
- **2017** — Gallagher acquired Ballard Benefit Works, a Michigan-based employee benefits brokerage
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $5.59B in first reported year
- **2016** — Gallagher acquired an 85% stake in Brim AB, a Stockholm-based specialty insurance and reinsurance…
- **2015** — Gallagher announced the acquisition of insurance brokers Christie Phoenix (Victoria) and its…
- **2014** — Gallagher announced the expansion of its brand presence in Australia through the rebranding of…
- **2013** — Gallagher acquired Bergvall Marine, an insurance brokerage firm based in Oslo, Norway
- **2010** — Gallagher announced an agreement to acquire substantially all of the insurance brokerage operations…
- **2000** — Gallagher acquired 16 smaller insurance brokerages, which expanded its presence across the United States,…
- **1927** — Founded in 1927, the company ranks among the world's largest insurance brokers

## Strengths

- High gross margin (45.5%)
- Revenue growing 26.3% year over year

## Watch-outs

- Altman Z-Score 0.96 — elevated financial-distress risk
- Net debt would take ~5.6 years of free cash flow to repay

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $8.21B | $907M | $1.58B |
| FY2022 | $8.55B | $1.11B | $1.94B |
| FY2023 | $9.56B | $970M | $1.84B |
| FY2024 | $11.6B | $1.46B | $2.44B |
| FY2025 | $13.9B | $1.49B | $1.78B |

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Source: https://stockcv.com/AJG — derived from company filings; may be delayed or incomplete. Information, not investment advice.