Explain this page
Arphra AIPlain-English read on Arthur J. Gallagher & Co.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
BMixed
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin54.8%
Operating margin18.3%
Net margin10.7%
ROE6.4%
ROA2.1%
ROIC5.7%
Liquidity & leverage
Current ratio1.06×
Quick ratio1.06×
Debt / equity0.60×
Net debt / EBITDA3.44×
Interest coverage4×
Efficiency & per-share
Asset turnover0.20×
Inventory days0
Days sales out.135
FCF / share$6.86
Book value / share$89.68
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Headline | ||||||||
| Market cap | — | — | — | $62.59B | $67.37B | — | — | — |
| Enterprise value | — | — | — | $61.09B | $79.98B | — | — | — |
| Multiples | ||||||||
| P / E | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 5.29 | 5.74 | — | — | — |
| EV / FCF | — | — | — | 25.03 | 44.81 | — | — | — |
| Yields | ||||||||
| Earnings yield | — | — | — | +2.34% | +2.22% | — | — | — |
| Free cash flow yield | — | — | — | +3.90% | +2.65% | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Margins | ||||||||
| Gross margin | +36.25% | +42.07% | +42.15% | +42.22% | +54.75% | +45.70% | +47.67% | +47.30% |
| Operating margin | +16.29% | +19.49% | +18.46% | +19.75% | +18.28% | +18.80% | +19.15% | +19.34% |
| EBITDA margin | +21.53% | +25.54% | +21.63% | +26.81% | +26.26% | +25.48% | +24.36% | +25.00% |
| EBIT margin | +14.63% | +18.52% | +14.71% | +19.53% | +18.21% | +17.32% | +17.14% | +17.26% |
| Pre-tax margin | +11.88% | +15.52% | +11.77% | +16.23% | +13.42% | +13.96% | +13.78% | +13.99% |
| Net margin | +11.05% | +13.03% | +9.63% | +12.66% | +10.72% | +11.15% | +11.29% | +11.23% |
| Cost structure | ||||||||
| Cost of revenue / sales | +63.75% | +57.93% | +57.85% | +57.78% | +45.25% | +53.07% | +52.39% | +54.91% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +47.84% | +56.13% | +56.41% | +56.45% | +50.22% | +52.94% | +54.46% | +53.62% |
| Effective tax rate | +2.06% | +15.90% | +18.49% | +21.57% | +19.68% | +19.33% | +20.27% | +20.09% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Returns | ||||||||
| Return on equity (ROE) | +10.59% | +12.12% | +8.96% | +7.25% | +6.40% | +7.54% | +7.68% | +7.62% |
| Return on assets (ROA) | +2.72% | +2.90% | +1.88% | +2.28% | +2.11% | +2.15% | +2.21% | +2.09% |
| Return on capital (ROC) | +8.82% | +10.68% | +9.72% | +6.78% | +6.82% | +7.66% | +7.76% | +7.76% |
| Return on invested capital (ROIC) | +5.98% | +7.14% | +5.07% | +4.34% | +4.00% | +4.54% | +4.58% | +4.51% |
| Asset turnover | +24.62% | +22.29% | +19.51% | +17.98% | +19.73% | +19.26% | +19.61% | +18.57% |
| DuPont · ROE decomposition | ||||||||
| Net margin | +11.05% | +13.03% | +9.63% | +12.66% | +10.72% | +11.15% | +11.29% | +11.23% |
| Asset turnover (× revenue / assets) | +24.62% | +22.29% | +19.51% | +17.98% | +19.73% | +19.26% | +19.61% | +18.57% |
| Equity multiplier (× assets / equity) | +389.54% | +417.38% | +477.25% | +318.42% | +302.67% | +351.18% | +346.93% | +364.99% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Turnover | ||||||||
| Asset turnover | 0.25 | 0.22 | 0.20 | 0.18 | 0.20 | 0.19 | 0.20 | 0.19 |
| Fixed-asset turnover | 9.55 | 9.26 | 8.94 | 11.24 | 10.05 | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — |
| Receivables turnover | 0.66 | 2.94 | 2.66 | 2.97 | 2.69 | — | — | — |
| Payables turnover | 0.38 | 0.26 | — | — | — | — | — | — |
| Days outstanding | ||||||||
| Days sales outstanding (DSO) | 551.01 | 124.27 | 137.22 | 123.06 | 135.48 | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 965.60 | 1377.87 | — | — | — | — | — | — |
| Cash conversion cycle | -414.59 | -1253.60 | 137.22 | 123.06 | 135.48 | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.88 | 1.25 | 2.10 | 1.77 | 1.29 | 1.70 | 1.62 | 1.68 |
| FCF / Net income | 1.74 | 1.08 | 1.90 | 1.67 | 1.19 | 1.55 | 1.50 | 1.52 |
| FCF margin | +19.19% | +14.12% | +18.25% | +21.13% | +12.80% | +17.28% | +16.97% | +17.07% |
| OCF margin | +20.76% | +16.26% | +20.17% | +22.35% | +13.84% | +18.96% | +18.29% | +18.82% |
| CapEx / Revenue | +1.57% | +2.14% | +1.92% | +1.23% | +1.04% | +1.37% | +1.41% | +1.37% |
| CapEx / D&A | 0.23 | 0.30 | 0.28 | 0.17 | 0.13 | — | — | — |
| Stock-based comp / Revenue | +0.16% | +0.29% | +0.31% | +1.02% | 0.00% | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 4.37 | 5.19 | 4.42 | 6.53 | 5.75 | 13.23 | 14.91 | 16.69 |
| EPS · basic | 4.47 | 5.30 | 4.51 | 6.63 | 5.83 | 13.34 | 15.33 | 16.71 |
| Book value / share | 41.29 | 42.80 | 49.32 | 90.13 | 89.68 | 94.35 | 103.46 | 113.95 |
| Tangible BV / share | -19.59 | -17.10 | -24.14 | 15.09 | -38.14 | 94.35 | 103.46 | 113.95 |
| Sales / share | 39.60 | 39.83 | 45.93 | 51.61 | 53.55 | 63.82 | 70.39 | 77.24 |
| Operating CF / share | 8.22 | 6.47 | 9.26 | 11.54 | 7.41 | 12.10 | 12.88 | 14.54 |
| Free cash flow / share | 7.60 | 5.62 | 8.38 | 10.90 | 6.86 | 11.03 | 11.95 | 13.18 |
| Dividends / share | 1.89 | 2.00 | 2.16 | 2.35 | 2.56 | 2.98 | 3.25 | 3.68 |
| Payout ratio | +43.23% | +38.55% | +48.85% | +35.92% | +44.65% | +41.83% | +40.91% | +42.39% |
| Retention ratio | +56.77% | +61.45% | +51.15% | +64.08% | +55.35% | +58.17% | +59.09% | +57.61% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 7y CAGR |
|---|---|---|---|---|---|---|---|---|---|
| Top-line | |||||||||
| Revenue · YoY | — | +4.16% | +17.79% | +14.72% | +20.66% | +20.04% | +9.05% | +10.15% | +13.65% |
| Gross profit · YoY | — | +20.89% | +18.01% | +14.91% | +56.47% | +0.20% | +13.75% | +9.28% | +18.05% |
| Profit | |||||||||
| Operating income · YoY | — | +24.67% | +11.53% | +22.75% | +11.69% | +23.46% | +11.03% | +11.29% | +16.48% |
| EBITDA · YoY | — | +23.54% | -0.24% | +42.24% | +18.16% | +16.48% | +4.25% | +13.03% | +16.10% |
| Net income · YoY | — | +22.87% | -12.99% | +50.87% | +2.13% | +24.87% | +10.48% | +9.58% | +13.92% |
| Operating | |||||||||
| EBIT · YoY | — | +31.86% | -6.45% | +52.25% | +12.53% | +14.19% | +7.88% | +10.92% | +16.36% |
| R&D · YoY | — | — | — | — | — | — | — | — | — |
| Per-share | |||||||||
| EPS · diluted · YoY | — | +18.76% | -14.84% | +47.74% | -11.94% | +130.17% | +12.63% | +11.94% | +21.10% |
| EPS · basic · YoY | — | +18.57% | -14.91% | +47.01% | -12.07% | +128.78% | +14.95% | +9.00% | +20.73% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Leverage | ||||||||
| Total debt | $6.59B | $6.42B | $8.32B | $13.49B | $14B | $16.36B | $18.19B | $20.44B |
| Net debt | $6.19B | $5.68B | $7.35B | -$1.5B | $12.6B | $7.88B | $9.33B | $10.35B |
| Net debt / EBITDA | 3.50 | 2.60 | 3.37 | -0.48 | 3.44 | 1.85 | 2.10 | 2.06 |
| Debt / equity | 0.77 | 0.70 | 0.77 | 0.67 | 0.60 | 0.66 | 0.68 | 0.69 |
| Debt / assets | +19.77% | +16.72% | +16.11% | +20.99% | +19.81% | +18.82% | +19.55% | +18.89% |
| Equity / assets | +25.67% | +23.96% | +20.95% | +31.41% | +33.04% | +28.48% | +28.82% | +27.40% |
| Coverage | ||||||||
| EBITDA / interest expense | 7.82 | 8.50 | 7.34 | 8.13 | 5.73 | 7.09 | 6.68 | 7.10 |
| Operating income / interest | 5.91 | 6.49 | 6.27 | 5.99 | 3.99 | 5.23 | 5.25 | 5.49 |
| Interest expense | $226.1M | $256.9M | $296.7M | $381.3M | $638.8M | $601.54M | $665.68M | $708.2M |
| Liquidity | ||||||||
| Current ratio | 1.06 | 1.04 | 1.03 | 1.51 | 1.06 | — | — | — |
| Quick ratio | 0.76 | 0.17 | 0.15 | 0.65 | 0.20 | — | — | — |
| Cash ratio | 0.02 | 0.03 | 0.03 | 0.51 | 0.04 | — | — | — |
| Working capital | $935.4M | $946.6M | $1.05B | $14.85B | $1.84B | — | — | — |
| Working capital / revenue | +11.39% | +11.07% | +10.44% | +128.54% | +13.18% | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 5.74x | 5.29x |
| Earnings yield | 2.2% | 2.3% |
| FCF yield | 2.6% | 3.9% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 6.4% | 7.3% |
| ROA | 2.1% | 2.3% |
| ROIC | 5.2% | 5.1% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 3.44 | -0.48 |
| Interest coverage | — | — |
| Current ratio | 1.06x | 1.51x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).