Arthur J. Gallagher & Co. (AJG) compounding analysis
Full-size annual and quarterly year-over-year growth charts for revenue, EPS, operating cash flow, EBITDA, and free cash flow against the 15%, 20%, and 30% bars over 3-, 5-, and 10-year windows, with each metric's valuation multiple vs its own history.
Revenue · 5YDoes not currently clear the 15%+, 20%+, or 30%+ revenue bars over 5Y.
- Score
- 41/100
- 5Y CAGR
- 14.7%
- Median YoY
- 15.1%
- YoY volatility
- σ 8.4pp· smooth
- Quarters ≥ 20%
- 6 of 20
- Negative quarters
- 1
- Valuation vs own 5Y history
- P/S 4.4x · 5Y median 5.0x · 26th percentile
How this score is computed
- Quarters at or above 20%: 6 of 20 → 12 of 40 pts
- Steadiness (typical swing 8.4pp) → 19 of 25 pts
- Pace (median 15.1% YoY) → 0.1 of 20 pts
- Latest quarter (27.6% YoY) → 9.5 of 15 pts
- Score: 41 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line · 5Y
P/S multiple vs its 5Y median · context only
Across metrics · 5Y
| Metric | 5Y CAGR | Median YoY | YoY σ | Qtrs ≥ 20% | Neg. qtrs |
|---|---|---|---|---|---|
| RevenueRevenue | 14.7% | 15.1% | 8.4pp | 6 of 20 | 1 |
| EPSEPS | 6.5% | 9.3% | 21.7pp | 3 of 19 | 5 |
| Op cash flowOperating cash flow | 1.9% | 10.1% | 209.1pp | 8 of 18 | 5 |
| EBITDAEBITDA | 18% | 19% | 7.4pp | 8 of 20 | 0 |
| FCFFree cash flow | 1.5% | 9.2% | 95.4pp | 7 of 17 | 4 |
Reported figures over 5Y: annual-series CAGR, median and standard deviation (σ, percentage points) of quarterly year-over-year growth, quarters at or above 20%, and quarters with negative YoY. “—” means the window needs more comparable data.
Scores, qualification bars, and the 0–100 consistency methodology are documented on the compounders list page →
See also: AJG on the compounders surface · All compounders, ranked
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., alongside its various subsidiaries, operates globally, providing a wide array of services that encompass insurance brokerage, expert consulting, and outsourced claims settlement and administration. Its geographic reach extends across the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. The company's business model is divided into two primary segments: Brokerage and Risk Management. The Brokerage division manages both retail and wholesale insurance operations. It also supports other brokers, including independent ones, in securing specialized or hard-to-place insurance coverage. This segment functions as a wholesale broker, managing general agent (MGA), and managing general underwriter (MGU) to distribute tailored insurance products to underwriting firms. Key activities within this segment include marketing, underwriting, policy issuance, premium collection, agent recruitment and supervision, claims payment, and reinsurance negotiations. It delivers essential brokerage and consulting solutions to a diverse client base, from commercial businesses, non-profit organizations, and public entities to individuals, specializing in insurance placement, managing loss exposure, and overseeing employer-sponsored benefit programs. The Risk Management segment focuses on offering contract-based claims settlement and administration services to businesses and public sector organizations. Its services also include comprehensive claims management, specialized loss control consulting, and independent insurance property appraisals. Arthur J. Gallagher & Co. delivers its extensive services through a broad network of associated insurance brokers and consultants. Its clientele is varied, serving commercial, industrial, public, religious, and non-profit organizations. The company was founded in 1927 and maintains its corporate headquarters in Rolling Meadows, Illinois.
- Sector
- Financial Services
- Industry
- Insurance - Brokers
- CEO
- J. Patrick Gallagher Jr.