BROWN & BROWN INC (BRO) Stock Fundamental Analysis
NYSE:BRO • US1152361010
69.59 USD
+0.17 (+0.24%)
At close: Feb 20, 2026
69.59 USD
0 (0%)
After Hours: 2/20/2026, 8:19:44 PM
We assign a fundamental rating of 4 out of 10 to BRO. BRO was compared to 149 industry peers in the Insurance industry. BRO has only an average score on both its financial health and profitability. BRO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year BRO was profitable.
- BRO had a positive operating cash flow in the past year.
- Of the past 5 years BRO 4 years were profitable.
- BRO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- BRO has a better Return On Assets (3.36%) than 69.80% of its industry peers.
- With a Return On Equity value of 7.97%, BRO is not doing good in the industry: 65.77% of the companies in the same industry are doing better.
- BRO has a Return On Invested Capital of 5.43%. This is amongst the best in the industry. BRO outperforms 81.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BRO is significantly below the industry average of 15.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 7.97% | ||
| ROIC | 5.43% |
ROA(3y)5.35%
ROA(5y)5.42%
ROE(3y)14.98%
ROE(5y)14.21%
ROIC(3y)9.07%
ROIC(5y)8.85%
1.3 Margins
- BRO has a better Profit Margin (18.02%) than 86.58% of its industry peers.
- BRO's Profit Margin has improved in the last couple of years.
- BRO's Operating Margin of 29.15% is amongst the best of the industry. BRO outperforms 91.28% of its industry peers.
- BRO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.15% | ||
| PM (TTM) | 18.02% | ||
| GM | N/A |
OM growth 3Y2.76%
OM growth 5Y4.78%
PM growth 3Y2.76%
PM growth 5Y4.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- BRO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- There is no outstanding debt for BRO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- Based on the Altman-Z score of 1.57, we must say that BRO is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of BRO (1.57) is better than 88.59% of its industry peers.
- BRO has a debt to FCF ratio of 5.95. This is a neutral value as BRO would need 5.95 years to pay back of all of its debts.
- BRO has a worse Debt to FCF ratio (5.95) than 64.43% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that BRO is somewhat dependend on debt financing.
- BRO has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: BRO underperforms 77.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.68
WACC8.03%
2.3 Liquidity
- BRO has a Current Ratio of 1.18. This is a normal value and indicates that BRO is financially healthy and should not expect problems in meeting its short term obligations.
- BRO has a Current ratio of 1.18. This is amongst the best in the industry. BRO outperforms 83.22% of its industry peers.
- A Quick Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
- BRO has a Quick ratio of 1.18. This is amongst the best in the industry. BRO outperforms 83.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.98%, which is quite good.
- The Earnings Per Share has been growing by 20.54% on average over the past years. This is a very strong growth
EPS 1Y (TTM)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%35.73%
3.2 Future
- The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
- BRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.68% yearly.
EPS Next Y6.07%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue Next Year20.85%
Revenue Next 2Y13.64%
Revenue Next 3Y10.43%
Revenue Next 5Y3.68%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.18, BRO is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 61.74% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, BRO is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.26, BRO is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 61.74% of the companies listed in the same industry.
- BRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
- BRO's Enterprise Value to EBITDA ratio is in line with the industry average.
- BRO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRO is more expensive than 62.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BRO does not grow enough to justify the current Price/Earnings ratio.
- BRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)0.79
EPS Next 2Y8.2%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.95%, BRO is not a good candidate for dividend investing.
- BRO's Dividend Yield is comparable with the industry average which is at 2.65.
- With a Dividend Yield of 0.95, BRO pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
- The dividend of BRO is nicely growing with an annual growth rate of 10.65%!
- BRO has paid a dividend for at least 10 years, which is a reliable track record.
- BRO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.65%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
- 18.24% of the earnings are spent on dividend by BRO. This is a low number and sustainable payout ratio.
- The dividend of BRO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.24%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
69.59
+0.17 (+0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-26 2026-01-26/amc
Earnings (Next)04-27 2026-04-27/amc
Inst Owners80.99%
Inst Owner Change4.06%
Ins Owners13.08%
Ins Owner Change-0.17%
Market Cap23.38B
Revenue(TTM)N/A
Net Income(TTM)987.00M
Analysts66.09
Price Target86.59 (24.43%)
Short Float %5.4%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP18.24%
Div Incr Years31
Div Non Decr Years34
Ex-Date02-04 2026-02-04 (0.165)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.9%
Min EPS beat(2)3.03%
Max EPS beat(2)10.78%
EPS beat(4)3
Avg EPS beat(4)5.69%
Min EPS beat(4)-2.08%
Max EPS beat(4)11.02%
EPS beat(8)7
Avg EPS beat(8)5.75%
EPS beat(12)11
Avg EPS beat(12)6.9%
EPS beat(16)14
Avg EPS beat(16)4.84%
Revenue beat(2)1
Avg Revenue beat(2)1.77%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)4.08%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)4.5%
Revenue beat(8)6
Avg Revenue beat(8)1.9%
Revenue beat(12)9
Avg Revenue beat(12)2.04%
Revenue beat(16)12
Avg Revenue beat(16)1.65%
PT rev (1m)-9.72%
PT rev (3m)-21.91%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 15.26 | ||
| P/S | 4.27 | ||
| P/FCF | 18 | ||
| P/OCF | 17.1 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.82 |
EPS(TTM)4.3
EY6.18%
EPS(NY)4.56
Fwd EY6.55%
FCF(TTM)3.87
FCFY5.56%
OCF(TTM)4.07
OCFY5.85%
SpS16.3
BVpS36.86
TBVpS-22.19
PEG (NY)2.66
PEG (5Y)0.79
Graham Number59.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 7.97% | ||
| ROCE | 7.11% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 85.29% | ||
| OM | 29.15% | ||
| PM (TTM) | 18.02% | ||
| GM | N/A | ||
| FCFM | 23.71% |
ROA(3y)5.35%
ROA(5y)5.42%
ROE(3y)14.98%
ROE(5y)14.21%
ROIC(3y)9.07%
ROIC(5y)8.85%
ROICexc(3y)9.73%
ROICexc(5y)9.73%
ROICexgc(3y)222.79%
ROICexgc(5y)196.94%
ROCE(3y)11.87%
ROCE(5y)11.58%
ROICexgc growth 3Y-5.47%
ROICexgc growth 5Y1.96%
ROICexc growth 3Y0.09%
ROICexc growth 5Y3.73%
OM growth 3Y2.76%
OM growth 5Y4.78%
PM growth 3Y2.76%
PM growth 5Y4.84%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 23.37% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.4% | ||
| Profit Quality | 131.61% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.57 |
F-Score4
WACC8.03%
ROIC/WACC0.68
Cap/Depr(3y)32.9%
Cap/Depr(5y)36.11%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.8%
Profit Quality(3y)115.6%
Profit Quality(5y)123.95%
High Growth Momentum
Growth
EPS 1Y (TTM)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
EPS Next Y6.07%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%35.73%
Revenue Next Year20.85%
Revenue Next 2Y13.64%
Revenue Next 3Y10.43%
Revenue Next 5Y3.68%
EBIT growth 1Y14.4%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year36.8%
EBIT Next 3Y22%
EBIT Next 5Y10.16%
FCF growth 1Y40.11%
FCF growth 3Y12.65%
FCF growth 5Y12.53%
OCF growth 1Y38.68%
OCF growth 3Y13.23%
OCF growth 5Y11.6%
BROWN & BROWN INC / BRO FAQ
Can you provide the ChartMill fundamental rating for BROWN & BROWN INC?
ChartMill assigns a fundamental rating of 4 / 10 to BRO.
What is the valuation status for BRO stock?
ChartMill assigns a valuation rating of 2 / 10 to BROWN & BROWN INC (BRO). This can be considered as Overvalued.
What is the profitability of BRO stock?
BROWN & BROWN INC (BRO) has a profitability rating of 6 / 10.
What is the valuation of BROWN & BROWN INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BROWN & BROWN INC (BRO) is 16.18 and the Price/Book (PB) ratio is 1.89.
How sustainable is the dividend of BROWN & BROWN INC (BRO) stock?
The dividend rating of BROWN & BROWN INC (BRO) is 5 / 10 and the dividend payout ratio is 18.24%.