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BROWN & BROWN INC (NYSE:BRO) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Sep 19, 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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Why NYSE:BRO may be interesting for quality investors.

  • Over the past 5 years, BROWN & BROWN INC has experienced impressive revenue growth, with 16.15% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • 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.
  • With a Debt/Free Cash Flow Ratio of 4.52, 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.
  • The Profit Quality (5-year) of BROWN & BROWN INC stands at 133.0%, 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.
  • The 5-year EBIT growth of BROWN & BROWN INC has been remarkable, with 19.24% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall BRO gets a fundamental rating of 6 out of 10. We evaluated BRO against 140 industry peers in the Insurance industry. While BRO has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, BRO is valued expensive at the moment.

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

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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