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Gallagher & Co. and its subsidiaries, collectively referred to herein as we, our, us or Gallagher, are engaged in providing insurance brokerage, reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals around the world. We believe that our major strength is our ability to deliver comprehensively structured ins…
13.42% operating margin is respectable but not wide. ROIC at 4.28%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 20.7%, still solid. Margins contracted 2.8pp, which offsets some of the top-line progress.
Free cash flow declined 27% versus the prior year, cash generation momentum has weakened. Net debt of $11.99B represents 6.7x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$14.97B
▲ +20.7% YoY
Net Income (TTM)
$1.61B
▲ +2.1% YoY
Op. Margin
13.63%
▼ -2.8pp YoY
ROIC
4.41%
▼ -1.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.86B
▼ -26.9% YoY
Op. Cash Flow (TTM)
$2.02B
▼ -25.3% YoY
Net Debt
$11.80B
Cash & Equiv.
$1.41B
5Y CAGR: +14.8%
5Y CAGR: +0.9%
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