ARTHUR J GALLAGHER & CO's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ARTHUR J GALLAGHER & CO has weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.36% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||1300.4||1231.3|
|Net Income ($mil)||46.5||21.9|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||1728.9||1463.4|
|Total Assets ($mil)||10712.6||9730.9|
|Total Debt ($mil)||2523.0||2335.8|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||14.34||14.17|
|Return on Assets||3.56||2.83|
|Return on Equity||10.6||8.77|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||177.13||166.66|
|Div / share||0.38||0.37|
|Book value / share||20.31||18.87|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||942099.0||1237454.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 17.22 for the Insurance industry and a discount compared to the S&P 500 average of 23.99. Conducting a second comparison, its price-to-book ratio of 2.19 indicates a discount versus the S&P 500 average of 2.74 and a premium versus the industry average of 1.56. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, ARTHUR J GALLAGHER & CO proves to trade at a premium to investment alternatives within the industry.
|AJG 20.47||Peers 17.22||AJG NA||Peers 10.65|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
AJG is trading at a premium to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|AJG 14.38||Peers 13.52||AJG 0.59||Peers 1.53|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
AJG is trading at a premium to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
AJG trades at a significant discount to its peers.
|AJG 2.19||Peers 1.56||AJG 26.16||Peers 56.38|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AJG is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AJG is expected to significantly trail its peers on the basis of its earnings growth rate.
|AJG 1.44||Peers 1.32||AJG 10.25||Peers -4.85|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AJG is trading at a valuation on par with its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
AJG has a sales growth rate that significantly exceeds its peers.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.