Arthur J. Gallagher & Co. (AJG) - Moat Analysis

Valuation

1.57

Assesses whether the stock is priced attractively relative to its earnings, assets, enterprise value, and cash flows. A high score signals the market is undervaluing the company compared to fundamental metrics.

Sub-dimension

Summary

Score

Earnings Valuation

1.0/5

1.00

How cheap or expensive the stock is relative to its earnings

1.00

Summary

•P/E Ratio stands at 40.37 - well below the sector average (16.00)
•PEG Ratio — - no data available

1.00

Asset Valuation

1.4/5

1.44

Whether the price reflects the company's book value and sales fairly

1.44

Summary

•P/B Ratio stands at 2.85 - well below the sector average (1.20)
•P/S Ratio stands at 5.32 - below the sector average (3.50)

1.44

Enterprise Valuation

1.8/5

1.75

How the market values the entire business including debt

1.75

Summary

•EV/EBITDA stands at 18.97 - below the sector average (12.00)
•EV/Sales stands at 5.32 - below the sector average (3.00)
•EV/Operating Cash Flow stands at 31.29 - well below the sector average (15.00)

1.75

Cashflow Valuation

2.2/5

2.20

What you pay for each dollar of free cash the company generates

2.20

Summary

•EV/FCF stands at 33.64 - below the sector average (22.00)
•FCF Yield stands at 3.0% - below the sector average (4.0%)

2.20

Financial Health

3.78

Evaluates the company's balance sheet strength through liquidity, leverage, and debt coverage ratios. A high score indicates a solid financial position with low risk of distress.

Sub-dimension

Summary

Score

Liquidity

2.1/5

2.15

Ability to cover short-term obligations with available assets

2.15

Summary

•Current Ratio stands at 1.06 - below the sector average (1.50)
•Quick Ratio stands at 1.06 - in line with the sector average (1.00)
•Cash Ratio stands at 0.03 - well below the sector average (0.15)

2.15

Leverage

4.8/5

4.77

How much the company relies on debt to finance operations

4.77

Summary

•Debt/Equity stands at 0.06 - well above the sector average (1.50)
•Debt/Assets stands at 0.02 - well above the sector average (0.75)
•Financial Leverage stands at 3.41 - above the sector average (6.00)

4.77

Coverage

4.2/5

4.19

Capacity to comfortably service interest and debt payments

4.19

Summary

•Interest Coverage stands at 5.13 - above the sector average (3.00)
•Debt Service Coverage stands at 2.02 - above the sector average (1.50)
•Net Debt/EBITDA stands at -0.01 - well above the sector average (2.50)

4.19

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