Gallagher’s Revenue and EPS Growth Outpaced Its Share Return

Arthur J. Gallagher shares returned 5.4% since March, trailing the S&P 500’s 21.4% gain over the same period, according to StockStory. The publisher points to five-year growth in revenue and earnings per share as reasons it views the company favorably.

StockStory said Gallagher’s revenue grew at an annualized rate of 16.3% over the past five years. Earnings per share rose at a compounded annual rate of 18.5% over that period, outpacing revenue growth.

The publisher also highlighted the company’s average free cash flow margin of 17.3% over five years, describing it as among the strongest in the business services sector. StockStory said that cash generation supports reinvestment and returns to investors.

At publication, StockStory cited a forward price-to-earnings ratio of 16.2 and a share price of $227.70. As of Monday afternoon, the shares traded at $230.35, down 0.32% since the previous close.

StockStory’s assessment is an opinion based on selected business measures. Gallagher provides insurance brokerage, reinsurance, consulting and third-party claims settlement services, according to the article.