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Why NYSE:BRO qualifies as a quality stock.

By Mill Chart

Last update: Jul 16, 2024

In this article we will dive into BROWN & BROWN INC (NYSE:BRO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BROWN & BROWN INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.


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Highlighting Notable Quality Metrics of NYSE:BRO.

  • BROWN & BROWN INC has achieved substantial revenue growth over the past 5 years, with a 16.15% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • BROWN & BROWN INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 277.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a Debt/Free Cash Flow Ratio of 4.35, BROWN & BROWN INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • BROWN & BROWN INC exhibits impressive Profit Quality (5-year) with a 133.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • BROWN & BROWN INC has experienced impressive EBIT growth over the past 5 years, with 19.24% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • The EBIT 5-year growth of BROWN & BROWN INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NYSE:BRO

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to BRO. BRO was compared to 139 industry peers in the Insurance industry. BRO has an excellent profitability rating, but there are some minor concerns on its financial health. BRO is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of BRO contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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