AJGNEUTRAL

AJG FCF Yield Analysis

2.6%

Higher than 24% of Financial Services sector peers

Updated 2042h ago·SEC filings & market data

Key Takeaway

FCF Yield, or free cash flow yield, measures the cash a company generates per share relative to its stock price — at 2.6%, you get $2.60 of free cash flow for every $100 you invest.

Sector Performance

24th percentile

AJG

2.6%

Sector Median

6.5%

Sector Avg

72.6%

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Deep Analysis

FCF Yield, or free cash flow yield, measures the cash a company generates per share relative to its stock price — at 2.6%, you get $2.60 of free cash flow for every $100 you invest.

This sits well below the sector median of 6.4%, placing Arthur J. Gallagher in the 16th percentile among Financial Services peers, meaning most competitors offer a higher yield. The metric shows no trend because year-over-year, quarter-over-quarter, and the last eight quarters of data are all reported as N/A — only the current single value of 2.6% is available. A low yield with no historical trend means there is no evidence of improvement or deterioration, so the investment risk is neutral on this measure, but the opportunity for income is limited relative to peers. This low FCF Yield supports the overall NEUTRAL verdict — it does not contradict it, as the yield is too weak to signal undervaluation but not low enough to flag distress.

Frequently Asked Questions

What does the FCF Yield tell investors about AJG?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does AJG's FCF Yield compare to its sector?

AJG's FCF Yield of 2.6% compares to a Financial Services sector median of 6.5%, placing it in the 24th percentile.

Who are AJG's closest peers by FCF Yield?

The closest Financial Services peers by FCF Yield include: AMP (6.2%), RJF (6.9%), AIG (6.9%), ARES (6.1%), RF (8.1%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.