Arthur J. Gallagher & CoFind Ratings Reports
ARTHUR J GALLAGHER & CO's gross profit margin for the second quarter of its fiscal year 2016 has increased 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 average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.06% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||1427.1||1371.4|
|Net Income ($mil)||150.0||139.3|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||1842.0||1765.5|
|Total Assets ($mil)||11384.3||10716.1|
|Total Debt ($mil)||2730.6||2371.6|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||21.03||19.88|
|Return on Assets||3.44||2.85|
|Return on Equity||10.89||8.41|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||177.03||174.55|
|Div / share||0.38||0.37|
|Book value / share||20.33||20.85|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1792910.0||1473692.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 42.48 for the Insurance industry and a discount compared to the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 2.40 indicates a discount versus the S&P 500 average of 2.82 and a premium versus the industry average of 1.53. The current price-to-sales ratio is below the S&P 500 average, but above the industry average.
|AJG 22.22||Peers 42.48||AJG 12.10||Peers 11.80|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
AJG is trading at a significant discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AJG is trading at a valuation on par to its peers.
|AJG 16.03||Peers 14.38||AJG 0.64||Peers 1.87|
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 2.40||Peers 1.53||AJG 20.21||Peers -3.60|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AJG is expected to have an earnings growth rate that significantly exceeds its peers.
|AJG 1.57||Peers 1.40||AJG 7.29||Peers 4.77|
Premium. 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 premium to 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.