Arthur J. Gallagher & Co. (AJG)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Arthur J. Gallagher as a large intermediary: insurance and reinsurance brokerage plus claims administration, with 67,456 employees. Any moat rests on scale and client relationships in brokerage, but the returns shown are modest. Filed figures show revenue growth: $10.1B in FY2023, $11.6B in FY2024, and $13.9B in FY2025. Per-share progress is uneven: diluted EPS was $4.42, $6.50, then $5.74 over those years, so FY2025 EPS was lower than FY2024 despite higher revenue. In fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $4.0B, net income $324.0M, and diluted EPS $1.25, versus revenue $3.2B, net income $368.0M, and EPS $1.40 in fiscal Q2 2025. That is revenue growth but profit and EPS contraction. FairStock calls it a STALWART based on 12.8% annual profit growth and 14.8% revenue growth over five years, yet the recent profit trend deserves attention. Returns are not high as measured: ROE 6.72%, ROCE 2.32%, Piotroski 3/9, Altman Z 0.93. The balance sheet has D/E 0.59, and trailing FCF is $2.3B, a 3.3% FCF yield. Valuation is the rub: at the 2026-10-26 close of $266.79, FairStock shows P/E 44.24, P/B 2.88, EV/EBITDA 20.53, and Graham Number $112.04, a -139.24% margin of safety. I would need either much stronger per-share profit or a lower price before calling this a Graham-style bargain.

In plain English: Arthur J. Gallagher is an insurance and reinsurance broker and claims administrator. It is a large business that has been growing revenue, but its latest reported profit and profit per share were lower than a year earlier. At the 2026-10-26 close of $266.79, the price looks expensive compared with the company’s earnings and a simple value estimate, so the stock appears priced for a lot of continued success.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer