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Is this Large Market Cap Stock target price reasonable for Arthur J Gallagher & Co. (NYSE:AJG)?

The company in question is, Arthur J Gallagher & Co. (NYSE:AJG) currently with a stock price of 50.4 (0.66% today). The market cap for Arthur J Gallagher & Co. is 8897.44, and is in the sector Financial, and Insurance Brokers industry. The target price for Arthur J Gallagher & Co. is 52.79. Currently Arthur J Gallagher & Co. is trading with a P/E of 22.68, and a forward P/E of 16.33. Average volume for Arthur J Gallagher & Co. is 1003.16 and so far today it is 153868.

Performance in the last year for Arthur J Gallagher & Co. has been 21.96%. For EPS growth, Arthur J Gallagher & Co. has seen a growth of 4.80%, and is looking to grow in the next year to 10.61%. More long term stats show that EPS growth has been 5.80% over the last five years and could be 9.58% for the next five years. Arthur J Gallagher & Co. has seen sales growth quarter over quarter at 4.10%, with EPS growth quarter over quarter at 3.70%. The 20-day simple moving average is 1.52%, with the 200-day simple moving average coming to 12.11%.

Since the IPO date for Arthur J Gallagher & Co. on the 09/07/1984, Arthur J Gallagher & Co. has seen performance year to date to be 25.40%. With Arthur J Gallagher & Co. trading at 50.4, the dividend yield is 3.04%, and the EPS is 2.21.

So could Arthur J Gallagher & Co., be undervalued? Well as said before P/E is 22.68. The PEG is 2.37, P/S is 1.61 and the P/B is at 2.47. The P/cash is 21.64, with P/free cash flow at 23.94.

Arthur J Gallagher & Co. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 1. This is with long term debt/equity at 0.65, and total debt/equity at 0.76.

In terms of margins, Arthur J Gallagher & Co. has a gross margin of 30.10%, an operating margin of 7.80% and a profit margin of 7.10%.Payout ratio for Arthur J Gallagher & Co. is 67.60%. Return on assets come to 3.60% with return on investment coming to 8.10%.

Insider ownership for Arthur J Gallagher & Co., is at 0.10% and institutional ownership comes to 85.90%. Outstanding shares are at 177.7. While shares float is 175.13. The float short is currently 2.03%, and short ratio is 3.54.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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