Understanding Arthur J. Gallagher & Co. (AJG)’s financial health through ratios

In the latest session, Arthur J. Gallagher & Co. (NYSE: AJG) closed at $206.61 down -3.72% from its previous closing price of $214.59. In other words, the price has decreased by -$7.98 from its previous closing price. On the day, 1093306 shares were traded. AJG stock price reached its highest trading level at $213.51 during the session, while it also had its lowest trading level at $206.11.

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For a deeper understanding of Arthur J. Gallagher & Co.’s stock, let’s take a closer look at its various ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 28.35 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 29.20. For the most recent quarter (mrq), Quick Ratio is recorded 1.10 and its Current Ratio is at 1.10. In the meantime, Its Debt-to-Equity ratio is 0.70 whereas as Long-Term Debt/Eq ratio is at 0.61.

Upgrades & Downgrades

Insider Transactions:

Additionally, insider trades can be beneficial to investors who want to learn what the management thinks about stock prices in the future. A recent insider transaction in this stock occurred on May 10 when CARY RICHARD C sold 3,204 shares for $217.62 per share. The transaction valued at 697,254 led to the insider holds 37,285 shares of the business.

BARRAT SHERRY S sold 2,330 shares of AJG for $500,938 on May 08. The Director now owns 18,808 shares after completing the transaction at $215.00 per share. On May 04, another insider, Cavaness Joel D, who serves as the Vice President of the company, sold 33,300 shares for $210.57 each. As a result, the insider received 7,011,981 and left with 135,178 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, AJG now has a Market Capitalization of 44.54B and an Enterprise Value of 50.61B. As of this moment, Arthur’s Price-to-Earnings (P/E) ratio for their current fiscal year is 38.36, and their Forward P/E ratio for the next fiscal year is 20.81. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 3.62. For the stock, the TTM Price-to-Sale (P/S) ratio is 4.98 while its Price-to-Book (P/B) ratio in mrq is 4.48. Its current Enterprise Value per Revenue stands at 5.93 whereas that against EBITDA is 22.46.

Stock Price History:

Over the past 52 weeks, AJG has reached a high of $219.23, while it has fallen to a 52-week low of $148.24. The 50-Day Moving Average of the stock is 201.23, while the 200-Day Moving Average is calculated to be 190.75.

Shares Statistics:

For the past three months, AJG has traded an average of 993.58K shares per day and 898.47k over the past ten days. A total of 212.80M shares are outstanding, with a floating share count of 208.85M. Insiders hold about 0.30% of the company’s shares, while institutions hold 87.20% stake in the company. Shares short for AJG as of Apr 27, 2023 were 2.15M with a Short Ratio of 2.15M, compared to 1.72M on Mar 30, 2023. Therefore, it implies a Short% of Shares Outstanding of 1.00% and a Short% of Float of 1.16%.

Dividends & Splits

According to the company, the forward annual dividend rate for AJG is 2.20, from 2.08 in the trailing year. Against a Trailing Annual Dividend Yield of 0.97%, it implies a Forward Annual Dividend Yield of 1.03%. The stock’s 5-year Average Dividend Yield is 1.60. The current Payout Ratio is 37.10% for AJG, which recently paid a dividend on Jun 15, 2023 with an ex-dividend date of May 31, 2023. Stock splits for the company last occurred on Jan 18, 2001 when the company split stock in a 2:1 ratio.

Earnings Estimates

There are 15 different market analysts currently analyzing its stock. On average, analysts expect EPS of $1.91 for the current quarter, with a high estimate of $1.94 and a low estimate of $1.86, while EPS last year was $1.7. The consensus estimate for the next quarter is $1.96, with high estimates of $2.01 and low estimates of $1.92.

Analysts are recommending an EPS of between $9.14 and $8.7 for the fiscal current year, implying an average EPS of $8.81. EPS for the following year is $9.93, with 16 analysts recommending between $10.54 and $9.51.

Revenue Estimates

A total of 8 analysts believe the company’s revenue will be $2.36B this quarter.It ranges from a high estimate of $2.41B to a low estimate of $2.32B. As of the current estimate, Arthur J. Gallagher & Co.’s year-ago sales were $2.01B, an estimated increase of 17.70% from the year-ago figure. For the next quarter, 7 analysts are estimating revenue of $2.38B, an increase of 17.20% less than the figure of $17.70% in the same quarter last year. There is a high estimate of $2.45B for the next quarter, whereas the lowest estimate is $2.35B.

A total of 8 analysts have provided revenue estimates for AJG’s current fiscal year. The highest revenue estimate was $10.01B, while the lowest revenue estimate was $9.66B, resulting in an average revenue estimate of $9.77B. In the same quarter a year ago, actual revenue was $8.42B, up 16.00% from the average estimate. Based on 8 analysts’ estimates, the company’s revenue will be $10.81B in the next fiscal year. The high estimate is $11.36B and the low estimate is $10.58B. The average revenue growth estimate for next year is up 10.60% from the average revenue estimate for this year.