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Should you consider NYSE:BRO for quality investing?

By Mill Chart

Last update: Aug 6, 2024

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.


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What matters for quality investors.

  • 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 234.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of BROWN & BROWN INC stands at 4.52, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 133.0%, BROWN & BROWN INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • BROWN & BROWN INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 19.24%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • BROWN & BROWN INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete 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.

Taking everything into account, BRO scores 6 out of 10 in our fundamental rating. BRO was compared to 140 industry peers in the Insurance industry. BRO scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, BRO is valued expensive at the moment.

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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