Recent News
On July 30, 2025 the company declared a regular quarterly cash dividend of $0.65 per share payable on September 19, 2025. On August 18, 2025 Arthur J. Gallagher completed the acquisition of AssuredPartners for approximately $13.45 billion, and management announced additional targeted acquisitions to expand international and niche-market coverage, including smaller deals to broaden West Coast and specialty capabilities.
Technical Analysis
ADX at 14.75 signals no strong underlying trend; the market lacks a defining directional strength even as shorter-term indicators move bullish.
DI+ sits at 22.89 and shows an increasing trend while DI- measures 21.83 and trends downward, a configuration that signals bullish directional pressure over the short term.
MACD at 0.72, increasing, sits above a -0.28 signal line; the MACD crossover above its signal line indicates rising bullish momentum in the near-term price structure.
MRO reads -8.71 with an increasing trend, implying the present price sits below the model target and carries potential to move higher as that oscillator normalizes.
RSI at 48.88 with an increasing trend registers neutral-to-slightly constructive momentum rather than overbought conditions; room exists for continuation without immediate exhaustion.
Price sits at $304.15, above the 20-day average ($298.26) and 50-day average ($297.71) but below the 200-day average ($311.91). The 12-day EMA (300.41) lies above the 26-day EMA (299.33), reinforcing the short-term bullish tilt while the 200-day average represents a nearer-term cap.
Bollinger proximity places the close slightly above the 1× standard deviation upper band ($303.91), suggesting short-term strength but not extreme dispersion; SuperTrend lower at $293.85 provides a technical support reference. Recent volume runs below 10-, 50- and 200-day averages, which reduces conviction behind moves.
Fundamental Analysis
Revenue totaled $3,220,800,000 with YoY revenue growth of -8.04% and QoQ revenue change of -136.50%, indicating top-line contraction on both yearly and sequential bases. Gross profit measured $1,374,500,000 and gross margin at 42.676% improved YoY by 6.141 percentage points, while gross margin QoQ fell by 11.169%.
Operating income stood at $624,400,000 and EBIT at $630,000,000. EBIT margin equals 19.56%, up 18.04% YoY but down 29.29% QoQ; that margin sits below the industry peer mean of 24.061% and below the industry peer median of 27.086%.
Net income from continuing operations reached $366,200,000. Reported EPS of $2.33 missed the estimate of $2.34 by $0.01, an EPS surprise of -0.43%.
Balance-sheet and cash metrics show $14,299,500,000 in cash and short-term investments but operating cash flow of -$426,100,000 and free cash flow of -$465,500,000, producing a negative free-cash-flow yield of -0.59%. Cash conversion ratio registers 21.05% while cash flow to earnings stands at 103.23%.
Leverage metrics present mixed signals: total debt $13,297,100,000 gives a debt-to-assets ratio of 16.60% and debt-to-equity of 57.76%, while debt-to-EBITDA reads 15.45x and interest coverage measures 3.97x. Returns remain modest: return on equity 1.589% and return on assets 0.474%.
Market multiples appear highly elevated: P/E at 227.17x, P/S at 24.40x, enterprise multiple 90.14x, and EVR 24.09x. The P/E level exceeds the industry peer mean of 94.82x and industry peer median of 103.15x, while the price-to-book ratio of 3.41x sits below the industry peer mean of 6.99x. WMDST values the stock as over-valued based on these multiples combined with negative free cash flow and stretched enterprise metrics.
Operationally, asset turnover at 0.0418 lags the industry peer mean of 0.1010 and the company records days sales outstanding of 131.17, contributing to working capital pressure alongside a -$582,500,000 change in working capital.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-10-30 |
| CASH FLOW | Begin Period Cash Flow | $ 22.2 B |
| Operating Cash Flow | $ -426.10 M | |
| Capital Expenditures | $ -39.40 M | |
| Change In Working Capital | $ -582.50 M | |
| Dividends Paid | $ -166.60 M | |
| Cash Flow Delta | $ -1.43 B | |
| End Period Cash Flow | $ 20.8 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 3.2 B | |
| Forward Revenue | $ 1.6 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.8 B | |
| Depreciation | $ 49.7 M | |
| Depreciation and Amortization | $ 230.8 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.4 B | |
| EBITDA | $ 860.8 M | |
| EBIT | $ 630.0 M | |
| Operating Income | $ 624.4 M | |
| Interest Income | — | |
| Interest Expense | $ 158.6 M | |
| Net Interest Income | $ -158.60 M | |
| Income Before Tax | $ 471.4 M | |
| Tax Provision | $ 105.2 M | |
| Tax Rate | 22.3 % | |
| Net Income | $ 365.8 M | |
| Net Income From Continuing Operations | $ 366.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.34 | |
| EPS Actual | $ 2.33 | |
| EPS Difference | $ -0.01 | |
| EPS Surprise | -0.427 % | |
| Forward EPS | $ 2.82 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 80.1 B | |
| Intangible Assets | $ 18.9 B | |
| Net Tangible Assets | $ 4.2 B | |
| Total Current Assets | $ 57.8 B | |
| Cash and Short-Term Investments | $ 14.3 B | |
| Cash | $ 14.3 B | |
| Net Receivables | $ 4.7 B | |
| Inventory | — | |
| Long-Term Investments | $ 1.6 B | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | $ 797.2 M | |
| Total Current Liabilities | $ 42.5 B | |
| Net Debt | — | |
| Total Debt | $ 13.3 B | |
| Total Liabilities | $ 57.1 B | |
| EQUITY | ||
| Total Equity | $ 23.0 B | |
| Retained Earnings | $ 5.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 89.81 | |
| Shares Outstanding | 256.363 M | |
| Revenue Per-Share | $ 12.56 | |
| VALUATION | Market Capitalization | $ 78.6 B |
| Enterprise Value | $ 77.6 B | |
| Enterprise Multiple | 90.138 | |
| Enterprise Multiple QoQ | 45.633 % | |
| Enterprise Multiple YoY | 9.416 % | |
| Enterprise Multiple IPRWA | AJG: 90.138 high: 75.465 median: 70.562 mean: 67.284 low: -7.424 |
|
| EV/R | 24.091 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.48 | |
| Asset To Liability | 1.404 | |
| Debt To Capital | 0.366 | |
| Debt To Assets | 0.166 | |
| Debt To Assets QoQ | -8.325 % | |
| Debt To Assets YoY | 2044.186 % | |
| Debt To Assets IPRWA | high: 0.804 median: 0.337 mean: 0.332 AJG: 0.166 low: 0.013 |
|
| Debt To Equity | 0.578 | |
| Debt To Equity QoQ | -3.899 % | |
| Debt To Equity YoY | 1270.225 % | |
| Debt To Equity IPRWA | high: 5.988 mean: 1.557 median: 1.371 AJG: 0.578 low: -4.467 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.414 | |
| Price To Book QoQ | -7.957 % | |
| Price To Book YoY | -29.765 % | |
| Price To Book IPRWA | high: 12.99 mean: 6.994 median: 6.587 AJG: 3.414 low: 0.141 |
|
| Price To Earnings (P/E) | 227.166 | |
| Price To Earnings QoQ | 157.876 % | |
| Price To Earnings YoY | 99.986 % | |
| Price To Earnings IPRWA | AJG: 227.166 high: 107.633 median: 103.153 mean: 94.822 low: 43.627 |
|
| PE/G Ratio | -3.673 | |
| Price To Sales (P/S) | 24.402 | |
| Price To Sales QoQ | 9.875 % | |
| Price To Sales YoY | 20.407 % | |
| Price To Sales IPRWA | high: 28.058 AJG: 24.402 mean: 17.247 median: 14.891 low: 1.133 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 115.718 | |
| Forward PE/G | -1.871 | |
| Forward P/S | 49.388 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.862 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.042 | |
| Asset Turnover Ratio QoQ | -22.476 % | |
| Asset Turnover Ratio YoY | -6.701 % | |
| Asset Turnover Ratio IPRWA | high: 0.661 mean: 0.101 median: 0.08 low: 0.059 AJG: 0.042 |
|
| Receivables Turnover | 0.696 | |
| Receivables Turnover Ratio QoQ | -21.461 % | |
| Receivables Turnover Ratio YoY | 4.362 % | |
| Receivables Turnover Ratio IPRWA | high: 6.234 mean: 1.028 median: 0.932 low: 0.841 AJG: 0.696 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 131.166 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.211 | |
| CapEx To Revenue | -0.012 | |
| CapEx To Depreciation | -0.793 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 35.1 B | |
| Net Invested Capital | $ 35.9 B | |
| Invested Capital | $ 35.9 B | |
| Net Tangible Assets | $ 4.2 B | |
| Net Working Capital | $ 15.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.336 | |
| Current Ratio | 1.36 | |
| Current Ratio QoQ | -5.771 % | |
| Current Ratio YoY | 30.614 % | |
| Current Ratio IPRWA | high: 3.027 AJG: 1.36 mean: 1.354 median: 1.203 low: 1.028 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 15.447 | |
| Cost Of Debt | 0.923 % | |
| Interest Coverage Ratio | 3.972 | |
| Interest Coverage Ratio QoQ | -38.977 % | |
| Interest Coverage Ratio YoY | -18.551 % | |
| Interest Coverage Ratio IPRWA | high: 24.118 median: 6.868 mean: 6.365 AJG: 3.972 low: -7.498 |
|
| Operating Cash Flow Ratio | 0.009 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.196 | |
| Dividend Payout Ratio | 0.455 | |
| Dividend Rate | $ 0.65 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.134 % | |
| Revenue Growth | -13.591 % | |
| Revenue Growth QoQ | -136.497 % | |
| Revenue Growth YoY | -8.038 % | |
| Revenue Growth IPRWA | high: 39.803 % median: -1.232 % mean: -3.868 % AJG: -13.591 % low: -27.136 % |
|
| Earnings Growth | -61.853 % | |
| Earnings Growth QoQ | -185.55 % | |
| Earnings Growth YoY | 75.499 % | |
| Earnings Growth IPRWA | high: 88.462 % median: -11.111 % mean: -17.01 % AJG: -61.853 % low: -166.667 % |
|
| MARGINS | ||
| Gross Margin | 42.676 % | |
| Gross Margin QoQ | -11.169 % | |
| Gross Margin YoY | 6.141 % | |
| Gross Margin IPRWA | high: 48.759 % median: 44.15 % mean: 43.269 % AJG: 42.676 % low: 27.47 % |
|
| EBIT Margin | 19.56 % | |
| EBIT Margin QoQ | -29.292 % | |
| EBIT Margin YoY | 18.038 % | |
| EBIT Margin IPRWA | high: 29.143 % median: 27.086 % mean: 24.061 % AJG: 19.56 % low: 3.605 % |
|
| Return On Sales (ROS) | 19.386 % | |
| Return On Sales QoQ | -29.921 % | |
| Return On Sales YoY | 16.988 % | |
| Return On Sales IPRWA | high: 26.982 % median: 26.226 % mean: 23.595 % AJG: 19.386 % low: -3.629 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -465.50 M | |
| Free Cash Flow Yield | -0.592 % | |
| Free Cash Flow Yield QoQ | -158.096 % | |
| Free Cash Flow Yield YoY | -479.487 % | |
| Free Cash Flow Yield IPRWA | high: 4.211 % mean: 1.28 % median: 1.005 % AJG: -0.592 % low: -10.38 % |
|
| Free Cash Growth | -155.18 % | |
| Free Cash Growth QoQ | -829.95 % | |
| Free Cash Growth YoY | 75.436 % | |
| Free Cash Growth IPRWA | high: 771.429 % mean: 44.508 % AJG: -155.18 % median: -338.109 % low: -572.81 % |
|
| Free Cash To Net Income | -1.273 | |
| Cash Flow Margin | 11.724 % | |
| Cash Flow To Earnings | 1.032 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.474 % | |
| Return On Assets QoQ | -53.438 % | |
| Return On Assets YoY | 3.72 % | |
| Return On Assets IPRWA | high: 2.096 % mean: 1.493 % median: 1.171 % low: 0.507 % AJG: 0.474 % |
|
| Return On Capital Employed (ROCE) | 1.676 % | |
| Return On Equity (ROE) | 0.016 | |
| Return On Equity QoQ | -49.651 % | |
| Return On Equity YoY | -35.116 % | |
| Return On Equity IPRWA | high: 0.086 median: 0.074 mean: 0.063 AJG: 0.016 low: -0.066 |
|
| DuPont ROE | 1.613 % | |
| Return On Invested Capital (ROIC) | 1.363 % | |
| Return On Invested Capital QoQ | -42.392 % | |
| Return On Invested Capital YoY | -103.52 % | |
| Return On Invested Capital IPRWA | high: 8.311 % mean: 3.207 % median: 3.077 % low: 1.431 % AJG: 1.363 % |
|