ARTHUR J. GALLAGHER & Co. Reports 19.5% Year-Over-Year Increase in Total Revenue for Q2 FY2023 at USD 2441.9 Million
August 23, 2023
☀️Earnings Overview
On July 27 2023, ARTHUR J. GALLAGHER & ($NYSE:AJG) Co. announced total revenue of USD 2441.9 million for the second quarter of their fiscal year 2023, which was a 19.5% increase from the same period in the previous year. Unfortunately, their net income dropped 17.5%, coming to USD 234.5 million.
Analysis
GoodWhale has conducted an in-depth analysis of the fundamentals of ARTHUR J. GALLAGHER &. The Star Chart shows that ARTHUR J. GALLAGHER & is highly rated in terms of health, with a score of 8/10 considering its cashflows and debt, indicating its capability to sustain future operations even in times of crisis. In terms of performance, ARTHUR J. GALLAGHER & is strong in dividends and growth, and medium in asset and profitability. Furthermore, it is classified as a ‘gorilla’ – a type of company that is believed to achieve stable and high revenue or earning growth due to its strong competitive advantage. Given ARTHUR J. GALLAGHER &’s solid fundamentals, it is likely to be attractive to investors who prioritize security and steady returns. This includes conservative investors looking for steady capital growth and reliable income, as well as yield-seeking investors looking for high dividend returns. Additionally, investors with a long-term investment horizon may find the company attractive due to its strong competitive advantage and potential for long-term capital appreciation. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AJG. More…
| Total Revenues | Net Income | Net Margin |
| 9.21k | 1.11k | 13.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AJG. More…
| Operations | Investing | Financing |
| 2.34k | -1k | -522.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AJG. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 54.37k | 43.93k | 48.24 |
Key Ratios Snapshot
Some of the financial key ratios for AJG are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | 27.8% | 19.0% |
| FCF Margin | ROE | ROA |
| 23.5% | 10.8% | 2.0% |
Peers
The insurance brokerage industry is highly competitive, with Arthur J. Gallagher & Co competing against Brown & Brown Inc, Argentum 47 Inc, and Ensurance Ltd. These companies are all vying for market share in the insurance brokerage industry, which is worth billions of dollars.
– Brown & Brown Inc ($NYSE:BRO)
Brown & Brown, Inc. is a diversified insurance agency, brokerage, and service company. It offers insurance products and services for individuals, families, and businesses in the areas of property and casualty, life and health, and employee benefits. The company operates through two segments: Retail and National Programs. The Retail segment offers a range of insurance products and services to individuals, families, and businesses through a network of over 200 offices in the United States. The National Programs segment provides insurance coverage to affinity groups, trade associations, and other groups through a variety of program administrators. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.
As of 2022, Brown & Brown had a market cap of 17.77 billion and a return on equity of 12.96%. The company’s market cap is the total value of its outstanding shares, and its return on equity is a measure of its profitability. Brown & Brown is a diversified insurance agency that offers a range of insurance products and services to individuals, families, and businesses.
– Argentum 47 Inc ($OTCPK:ARGQ)
Argentum 47 Inc is a publicly traded company with a market capitalization of 310.86k as of 2022. The company has a return on equity of 33.4%. Argentum 47 Inc is engaged in the business of providing engineering and construction services.
– Ensurance Ltd ($ASX:ENA)
Ensurance Ltd is a provider of insurance and reinsurance products and services. The company has a market cap of 20.73M as of 2022 and a Return on Equity of 5.74%. Ensurance Ltd offers a variety of insurance and reinsurance products, including property and casualty, life and health, and specialty lines of insurance. The company also provides a range of reinsurance products, including property, casualty, and life reinsurance.
Summary
ARTHUR J. GALLAGHER & Co. reported total revenue of USD 2441.9 million for the second quarter of its fiscal year 2023, showing a 19.5% year-over-year increase. However, their net income declined 17.5%, amounting to USD 234.5 million. This indicates that the company’s growth is primarily driven by revenue and not profits, suggesting that investors should be cautious in investing in the company. It is essential to carefully analyze the financials of the company before investing to ensure a good return on investment.
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