AJG

Arthur J. Gallagher

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Insurance Brokers

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/30/26

Business Summary

DLX operates as a diversified industrial conglomerate, generating cash through multiple operating segments that spread risk across business lines. Its model relies on disciplined capital allocation, extracting operating margin of 12.10% from mature, cash-generative activities rather than hypergrowth ventures. The moat is less about technological dominance and more about embedded customer relationships, recurring demand pockets, and cross-segment scale. Cash flow durability, not explosive expansion, underpins its ability to support dividends and reinvest capital at a 7.70% ROIC.

VALUATION

P/E

37.2

Market Cap ($M USD)

$54,858

Forward P/E

14.4

PEG

0.8

PRICE TO SALES

4

PRICE TO BOOK

2.4

EV / EBITDA

18.4

5-Year Average P/E

DIVIDEND

Yield

1.20%

Annual Payout

$2.80

Payout Ratio

44.60%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

7.80%

Financial Health & Profitability

Earnings Per Share

$5.83

Next Year EPS Growth Estimate

$14.83

Next Year Revenue Growth Estimate

9.00%

Return on Equity (ROE)

6.40%

Operating Margin

18.30%

Debt-to-Equity

0.6

Piotroski F-Score

4

Altman Z-Score

-

Return on Invested Capital (ROIC)

5.70%%

Current Ratio

1.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

DLX screens like a statistically cheap industrial with a balance sheet that demands caution. A 15.6 P/E collapsing to a 6.5 Forward P/E implies either a dramatic earnings inflection or a market that doesn’t believe next year’s numbers, and with EPS at 7.2 versus EPS Next Year (Est.) of $1.83, the forward compression looks more like volatility than clean growth. The 1.7 Altman Z-Score sits in the gray zone, not distressed but far from safe, while a Piotroski F-Score of 7 signals underlying operational competence. This is not a pristine compounder; it’s a potential deep-value rerating candidate with measurable balance-sheet risk.

AI Exposure / Tech Reliance

As a conglomerate in the Industrials sector, DLX’s AI exposure is indirect and execution-driven rather than platform-driven. Technology adoption would likely manifest in operational efficiency, margin protection, and capital allocation discipline rather than top-line disruption. Its ability to maintain a 12.10% operating margin will determine whether it can leverage automation and data tools effectively.

The Bull Case

From a GARP lens, the numbers are compelling. A 0.6 Price/Sales and 1.9 Price/Book multiple in combination with a 7.70% ROIC suggest the market is not pricing in meaningful capital efficiency, especially with a solid Piotroski F-Score of 7 indicating healthy internal fundamentals. The 12.10% operating margin shows the business is not structurally broken, and a 2.2 TTM yield provides tangible cash return while investors wait for sentiment to shift. With a Forward P/E of 6.5, even modest execution could drive multiple expansion, particularly if institutional ownership at $32.67 stabilizes the shareholder base.

The Bear Case

The bear case is centered on quality and sustainability of earnings. Return on Equity at 1.20% is weak relative to a 1.9 Price/Book, suggesting equity capital is not being productively deployed. A Debt/Equity ratio of 12.10% paired with an Altman Z-Score of 1.7 signals limited margin for error if operating conditions soften, and the absence of a PEG Forward figure removes visibility into growth-adjusted valuation. With Short % of Float at 0.00%, there is no embedded squeeze catalyst, and the inconsistency between EPS of 7.2 and EPS Next Year (Est.) of $1.83 raises serious questions about earnings durability.

Market Sentiment & Smart Money

Short Interest %

2.20%

Analyst Consensus

1.79

Average Analyst Price Target

$274.80

Institutional Ownership %

93.60%

1-Year Beta

0.22

Insider Buying % (6 Mo)

0.90%%

Distance to 52-Week High

60.80%%

Distance to 52-Week Low

109.50%%