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Upturn AI SWOT - About
AJG 
Arthur J Gallagher & Co (AJG)
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Upturn Advisory Summary
04/01/2025: AJG (4-star) is a STRONG-BUY. BUY since 42 days. Profits (14.15%). Updated daily EoD!
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
AI Based Fundamental Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Analysis of Past Performance
Type Stock | Historic Profit 41.72% | Avg. Invested days 46 | Today’s Advisory Strong Buy |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 88.29B USD | Price to earnings Ratio 53.2 | 1Y Target Price 329.47 |
Price to earnings Ratio 53.2 | 1Y Target Price 329.47 | ||
Volume (30-day avg) 1518800 | Beta 0.76 | 52 Weeks Range 228.18 - 346.95 | Updated Date 03/31/2025 |
52 Weeks Range 228.18 - 346.95 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 0.75% | Basic EPS (TTM) 6.49 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.39% | Operating Margin (TTM) 36.4% |
Management Effectiveness
Return on Assets (TTM) 3.03% | Return on Equity (TTM) 9.49% |
Valuation
Trailing PE 53.2 | Forward PE 29.5 | Enterprise Value 85642091129 | Price to Sales(TTM) 8.08 |
Enterprise Value 85642091129 | Price to Sales(TTM) 8.08 | ||
Enterprise Value to Revenue 7.41 | Enterprise Value to EBITDA 27.64 | Shares Outstanding 255735008 | Shares Floating 251826984 |
Shares Outstanding 255735008 | Shares Floating 251826984 | ||
Percent Insiders 0.92 | Percent Institutions 93.09 |
Analyst Ratings
Rating 3.82 | Target Price 305.01 | Buy 3 | Strong Buy 6 |
Buy 3 | Strong Buy 6 | ||
Hold 7 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Arthur J Gallagher & Co
Company Overview
History and Background
Arthur J. Gallagher & Co. was founded in 1927. Initially focused on providing surety bonds, it expanded into risk management and insurance brokerage services through organic growth and acquisitions, becoming a global player.
Core Business Areas
- Brokerage: Offers retail and wholesale insurance brokerage services, assisting clients in securing property, casualty, and employee benefits insurance. Generates revenue from commissions and fees.
- Risk Management: Provides third-party claims administration, risk control consulting, and appraisal services to self-insured entities and insurance companies. Generates revenue from fees.
- Corporate: This segment includes the costs of running a large, multinational company. This often includes debt and other items not directly related to the Insurance or Risk Management services they provide.
Leadership and Structure
J. Patrick Gallagher, Jr. is the Chairman and CEO. The company has a decentralized organizational structure with regional and specialized teams, allowing for local expertise while maintaining global coordination.
Top Products and Market Share
Key Offerings
- Commercial Property & Casualty Insurance: Provides insurance coverage for businesses, protecting against property damage, liability claims, and other risks. Competitors include Marsh McLennan, Aon, and Willis Towers Watson. Market share data is embedded in overall brokerage market share (see Competitors section).
- Employee Benefits Consulting & Brokerage: Offers consulting and brokerage services related to employee benefits programs, including health, life, and disability insurance. Competitors include Mercer, Aon Hewitt, and Willis Towers Watson. Market share data is embedded in overall brokerage market share (see Competitors section).
- Risk Management Services: Offers services to help businesses identify, assess and manage operational risks. Competitors include Marsh McLennan, Aon, and Willis Towers Watson. Market share data is embedded in overall brokerage market share (see Competitors section).
Market Dynamics
Industry Overview
The insurance brokerage industry is characterized by consolidation, technological advancements, and increasing regulatory scrutiny. Demand is driven by economic growth, global risks, and the need for specialized insurance solutions.
Positioning
Arthur J. Gallagher & Co. is a leading global insurance brokerage and risk management services firm, known for its strong organic growth and acquisition strategy. It focuses on middle-market clients and specialized industries, offering a combination of global reach and local expertise.
Total Addressable Market (TAM)
The global insurance brokerage market is estimated to be in the hundreds of billions of dollars. Gallagher is well-positioned to continue growing its market share through strategic acquisitions and organic growth initiatives.
Upturn SWOT Analysis
Strengths
- Strong organic growth
- Successful acquisition strategy
- Diversified revenue streams
- Experienced management team
- Global presence
Weaknesses
- Integration risks associated with acquisitions
- Exposure to economic cycles
- Dependence on insurance market conditions
- Regulatory compliance costs
- High Debt levels
Opportunities
- Further consolidation in the insurance brokerage industry
- Expansion into emerging markets
- Development of new risk management solutions
- Leveraging technology to improve efficiency
- Increasing demand for specialty insurance products
Threats
- Intense competition
- Economic downturns
- Changes in insurance regulations
- Cybersecurity risks
- Rising interest rates
Competitors and Market Share
Key Competitors
- MMC
- AON
- WTW
- HUBG
Competitive Landscape
Arthur J. Gallagher & Co. competes with larger global brokers and smaller regional firms. Its competitive advantages include its focus on middle-market clients, its strong organic growth, and its specialized industry expertise. Disadvantages include its smaller scale compared to the largest global brokers.
Major Acquisitions
Buck
- Year: 2023
- Acquisition Price (USD millions): 660
- Strategic Rationale: Expanded Gallagheru2019s benefits & HR consulting capabilities, increasing its client base.
Eastern Insurance Group
- Year: 2023
- Acquisition Price (USD millions): 0
- Strategic Rationale: Reinforces market position in New England through expanded network. Price not significant enough to determine.
Growth Trajectory and Initiatives
Historical Growth: Arthur J. Gallagher & Co. has demonstrated consistent growth through a combination of organic expansion and strategic acquisitions. This has made them a major player in the insurance business.
Future Projections: Future growth projections not available at this time.
Recent Initiatives: Recent initiatives include investments in technology, expansion of specialized industry practices, and continued acquisitions of complementary businesses.
Summary
Arthur J. Gallagher & Co. is a robust player in the insurance brokerage and risk management space, benefiting from a diversified revenue stream and a successful acquisition strategy. While they face challenges related to integration risks and regulatory compliance, their strong organic growth and global presence position them well for future expansion. Keeping a close eye on economic cycles and insurance market conditions will be crucial for navigating potential headwinds. They should leverage their expertise and continue to grow in selected markets.
Similar Companies
AON
Aon PLC
AON
Aon PLC
BRP
Brp Group Inc
BRP
Brp Group Inc
HUBG
Hub Group Inc
HUBG
Hub Group Inc
MMC
Marsh & McLennan Companies Inc
MMC
Marsh & McLennan Companies Inc
WTW
Willis Towers Watson PLC
WTW
Willis Towers Watson PLC
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
- MarketWatch
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share estimates may vary and are based on available data.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Arthur J Gallagher & Co
Exchange NYSE | Headquaters Rolling Meadows, IL, United States | ||
IPO Launch date 1984-09-07 | Chairman & CEO Mr. J. Patrick Gallagher Jr. | ||
Sector Financial Services | Industry Insurance Brokers | Full time employees 56000 | Website https://www.ajg.com |
Full time employees 56000 | Website https://www.ajg.com | ||
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. The company was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
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