CluenexArthur J. Gallagher AJG
Arthur J. Gallagher scores weak on business quality (4.1 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Arthur J. Gallagher does
Arthur J. Gallagher & Co. provides insurance brokerage, consulting, and third-party claims settlement services to commercial and institutional clients, earning commissions and fees on risk management. The firm continues its aggressive M&A strategy, recently absorbing Albany Insurance Services Limited to expand its specialty brokerage footprint.
- What it does best
AJG excels at acquiring and integrating boutique brokerages to accelerate top-line expansion, posting a 20.7% revenue growth rate that outpaces peers like MRSH at 10.3%. This roll-up engine relies on deep industry relationships that are difficult for competitors to replicate quickly.
- The main risk
Carrying $13.0 billion in total debt against just $1.2 billion in cash creates a vulnerable balance sheet. With interest coverage sitting at 5.5x, any earnings compression leaves little room to service debt obligations comfortably without straining cash flows.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins land at 22.5% while net margin sits near 10.0%, reflecting moderate baseline returns. The business fails to show strong margin expansion as revenue scales rapidly.
The business lacks a wide structural moat, reflected by a low moat score and an ROE of 6.7% sitting below the sector median. Fragmented insurance broker markets prevent deep ecosystem lock-in.
Revenue growth surges at 20.7%, driven by aggressive acquisitions like Albany Insurance Services Limited. This rate accelerates well past historical levels, reflecting heavy deal activity.
Total debt of $13.0 billion outweighs cash holdings of $1.2 billion significantly. Free cash flow of $2.3 billion supports operations, but leverage remains heavy and financial footing is softening.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
4 sold $7.6M outside pre-planned sales.
Our sealed record on AJG
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Arthur J. Gallagher scores weak on the Cluenex quality check (4.1 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health weak.
In the last 90 days of SEC Form 4 filings: 4 sold $7.6M outside pre-planned sales.
Oct 29, 2026, after the close.
See AJG today
- Today's verdict on AJG, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Arthur J. Gallagher (AJG)”, https://cluenex.com/stocks/ajg/, data as of Oct 10, 2026.