Arthur J. Gallagher & Co. cash flow to debt ratio of 13.79% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Arthur J. Gallagher & Co.'s free cash flow has decreased 26.87% from $2.44B last year to $1.78B, signaling decreasing performance

Arthur J. Gallagher & Co.'s debt to equity ratio is 0.09, which means that the company's assets are healthy financed, signaling financial stability.

Arthur J. Gallagher & Co.'s debt has decreased relative to shareholder equity from 0.67 last year to 0.09 today, signaling strengthened financials

Arthur J. Gallagher & Co. has a net debt to EBITDA ratio of 3.44x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Arthur J. Gallagher & Co.'s interest coverage ratio of 4.14 indicates that earnings with good margin can cover interest payments on company debt

Arthur J. Gallagher & Co.'s profit margin was 12.66% last year and is 9.96% this year, signaling decreasing performance

Arthur J. Gallagher & Co.'s short-term assets of $34.36B exceed its short-term liabilities of $32.52B

Arthur J. Gallagher & Co.'s return on assets of 1.92% is lower than the 5.00% threshold, indicating inefficient asset utilization

Arthur J. Gallagher & Co.'s return on equity of 6.67%, is lower than 15.00%, indicating bad performance

Arthur J. Gallagher & Co.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Arthur J. Gallagher & Co. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Arthur J. Gallagher & Co. has positive free cash flow, indicating the company generates cash after capital expenditures

Arthur J. Gallagher & Co. has a free cash flow yield of 3.01%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Arthur J. Gallagher & Co.'s yearly earnings has increased 2.13% since last year from $1.46B to $1.49B, signaling increasing performance

Arthur J. Gallagher & Co.'s yearly revenue has increased 20.66% since last year from $11.55B to $13.94B, signaling increasing performance

ROIC 5.30% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Arthur J. Gallagher & Co.'s 3-year revenue CAGR of 17.70% is positive, indicating growing revenue over the past 3 years

Arthur J. Gallagher & Co. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Arthur J. Gallagher & Co. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Arthur J. Gallagher & Co. is overvalued relative to its fair value price of 37.34 based on Base Cash Flow Valuation (DCF) model

Arthur J. Gallagher & Co. has an earnings yield of 2.64%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Arthur J. Gallagher & Co. is overvalued relative to its fair value price of 50.03 based on Base EBITDA Valuation model

Arthur J. Gallagher & Co. has an EV/EBITDA ratio of 19.66x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Arthur J. Gallagher & Co. is overvalued relative to its fair value price of 211.52 based on Base Earnings Fair Value model

Arthur J. Gallagher & Co. has a PEG-ratio over 1 which is considered overvalued

Arthur J. Gallagher & Co. has a price-to-book ratio of 2.50x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Arthur J. Gallagher & Co. has a price-to-sales ratio of 3.76x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue