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Why Quality Investors May Find BROWN & BROWN INC (NYSE:BRO) Attractive.

By Mill Chart

Last update: Sep 22, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BROWN & BROWN INC (NYSE:BRO) is suited for quality investing. Investors should of course do their own research, but we spotted BROWN & BROWN INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into BROWN & BROWN INC's Quality Metrics.

  • BROWN & BROWN INC has achieved substantial revenue growth over the past 5 years, with a 13.69% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • The ROIC excluding cash and goodwill of BROWN & BROWN INC stands at 99.6%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a favorable Debt/Free Cash Flow Ratio of 4.41, BROWN & BROWN INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of BROWN & BROWN INC stands at 142.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • BROWN & BROWN INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.49%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • BROWN & BROWN INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

BRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 142 industry peers in the Insurance industry. BRO scores excellent on profitability, but there are some minor concerns on its financial health. BRO is valued quite expensive, but it does show an excellent growth. These ratings would make BRO suitable for growth investing!

Check the latest full fundamental report of BRO for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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