Arthur J. Gallagher & Co. (AJG) — Free Cash Flow Yield
Financial Services
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. The company operates in Brokerage and Risk Management segments. Its Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. The company was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
| Metric | Value |
|---|---|
| FCF Yield | 2.8% |
| Financial Services Sector Avg FCF Yield | 6.6% |
| Annual Free Cash Flow | $1.8B |
| Market Cap | $64.4B |
| P/E Ratio | 41.7x |
Arthur J. Gallagher & Co.'s FCF yield of 2.8% is below the Financial Services sector average (6.6%).
Frequently Asked Questions
What is Arthur J. Gallagher & Co.'s (AJG) free cash flow yield?
Arthur J. Gallagher & Co.'s (AJG) free cash flow yield is 2.8%. That is below the Financial Services sector average (6.6%).
Is AJG's free cash flow yield good?
At 2.8%, AJG's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Arthur J. Gallagher & Co. generate?
Arthur J. Gallagher & Co. generated $1.8B in free cash flow, against a market cap of $64.4B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →