BROWN & BROWN INC (BRO)
US1152361010 - Common Stock
BRO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. BRO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, BRO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BRO had positive earnings in the past year.
BRO had a positive operating cash flow in the past year.
BRO had positive earnings in each of the past 5 years.
Each year in the past 5 years BRO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.93%, BRO belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.07%, BRO is in the better half of the industry, outperforming 66.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.69%, BRO belongs to the top of the industry, outperforming 93.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BRO is above the industry average of 4.38%.
The last Return On Invested Capital (9.69%) for BRO is above the 3 year average (8.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 16.07% | ||
| ROIC | 9.69% |
ROA(3y)5.45%
ROA(5y)5.32%
ROE(3y)14.45%
ROE(5y)13.45%
ROIC(3y)8.82%
ROIC(5y)8.43%
1.3 Margins
BRO has a Profit Margin of 22.35%. This is amongst the best in the industry. BRO outperforms 86.43% of its industry peers.
BRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.03%, BRO belongs to the top of the industry, outperforming 92.14% of the companies in the same industry.
BRO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.03% | ||
| PM (TTM) | 22.35% | ||
| GM | N/A |
OM growth 3Y3.31%
OM growth 5Y2.66%
PM growth 3Y4.19%
PM growth 5Y3.84%
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.
Compared to 1 year ago, BRO has more shares outstanding
The number of shares outstanding for BRO has been increased compared to 5 years ago.
BRO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that BRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRO has a Altman-Z score of 2.66. This is amongst the best in the industry. BRO outperforms 94.29% of its industry peers.
The Debt to FCF ratio of BRO is 3.50, which is a good value as it means it would take BRO, 3.50 years of fcf income to pay off all of its debts.
BRO's Debt to FCF ratio of 3.50 is on the low side compared to the rest of the industry. BRO is outperformed by 62.14% of its industry peers.
BRO has a Debt/Equity ratio of 0.52. This is a neutral value indicating BRO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, BRO is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.13
WACC8.57%
2.3 Liquidity
BRO has a Current Ratio of 1.15. 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 better Current ratio (1.15) than 83.57% of its industry peers.
A Quick Ratio of 1.15 indicates that BRO should not have too much problems paying its short term obligations.
BRO has a Quick ratio of 1.15. This is amongst the best in the industry. BRO outperforms 83.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.40%, which is quite impressive.
Measured over the past years, BRO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.97% on average per year.
The Revenue has grown by 12.48% in the past year. This is quite good.
Measured over the past years, BRO shows a quite strong growth in Revenue. The Revenue has been growing by 16.15% on average per year.
EPS 1Y (TTM)30.4%
EPS 3Y18.47%
EPS 5Y17.97%
EPS Q2Q%28.17%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y17.66%
Revenue growth 5Y16.15%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 16.85% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.76% on average over the next years. This is quite good.
EPS Next Y34.86%
EPS Next 2Y21.22%
EPS Next 3Y16.85%
EPS Next 5YN/A
Revenue Next Year12.77%
Revenue Next 2Y10.8%
Revenue Next 3Y9.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue 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
BRO is valuated quite expensively with a Price/Earnings ratio of 28.91.
BRO's Price/Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 77.14% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, BRO is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.93, the valuation of BRO can be described as rather expensive.
73.57% of the companies in the same industry are cheaper than BRO, based on the Price/Forward Earnings ratio.
BRO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than 60.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than the industry average as 69.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.69 | ||
| EV/EBITDA | 19.77 |
4.3 Compensation for Growth
BRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of BRO may justify a higher PE ratio.
BRO's earnings are expected to grow with 16.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.61
EPS Next 2Y21.22%
EPS Next 3Y16.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, BRO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, BRO is paying slightly less dividend.
With a Dividend Yield of 0.59, BRO pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of BRO grows each year by 9.32%, which is quite nice.
BRO has been paying a dividend for at least 10 years, so it has a reliable track record.
BRO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.32%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
BRO pays out 14.26% of its income as dividend. This is a sustainable payout ratio.
BRO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.26%
EPS Next 2Y21.22%
EPS Next 3Y16.85%
BROWN & BROWN INC
NYSE:BRO (12/20/2024, 8:04:01 PM)
After market: 103.13 +0.2 (+0.19%)102.93
+0.63 (+0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.59%
Inst Owner Change2.72%
Ins Owners16.44%
Ins Owner Change-0.09%
Market Cap29.43B
Analysts71
Price Target115.21 (11.93%)
Short Float %1.66%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Dividend Growth(5Y)9.32%
DP14.26%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.88%
Min EPS beat(2)2.93%
Max EPS beat(2)4.82%
EPS beat(4)4
Avg EPS beat(4)5.81%
Min EPS beat(4)2.93%
Max EPS beat(4)8.12%
EPS beat(8)8
Avg EPS beat(8)7.51%
EPS beat(12)11
Avg EPS beat(12)4.56%
EPS beat(16)15
Avg EPS beat(16)7.03%
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)0.76%
Max Revenue beat(2)1.9%
Revenue beat(4)4
Avg Revenue beat(4)2.03%
Min Revenue beat(4)0.76%
Max Revenue beat(4)3.1%
Revenue beat(8)7
Avg Revenue beat(8)2.18%
Revenue beat(12)10
Avg Revenue beat(12)1.61%
Revenue beat(16)14
Avg Revenue beat(16)2.11%
PT rev (1m)4.04%
PT rev (3m)7.37%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)3.12%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 24.93 | ||
| P/S | 6.33 | ||
| P/FCF | 28.69 | ||
| P/OCF | 26.32 | ||
| P/B | 4.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.77 |
EPS(TTM)3.56
EY3.46%
EPS(NY)4.13
Fwd EY4.01%
FCF(TTM)3.59
FCFY3.49%
OCF(TTM)3.91
OCFY3.8%
SpS16.25
BVpS22.6
TBVpS-9.42
PEG (NY)0.83
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 16.07% | ||
| ROCE | 12.69% | ||
| ROIC | 9.69% | ||
| ROICexc | 10.62% | ||
| ROICexgc | 122.04% | ||
| OM | 30.03% | ||
| PM (TTM) | 22.35% | ||
| GM | N/A | ||
| FCFM | 22.07% |
ROA(3y)5.45%
ROA(5y)5.32%
ROE(3y)14.45%
ROE(5y)13.45%
ROIC(3y)8.82%
ROIC(5y)8.43%
ROICexc(3y)9.7%
ROICexc(5y)9.36%
ROICexgc(3y)230.66%
ROICexgc(5y)194.03%
ROCE(3y)11.56%
ROCE(5y)11.05%
ROICexcg growth 3Y32.85%
ROICexcg growth 5Y3.01%
ROICexc growth 3Y4.04%
ROICexc growth 5Y3.1%
OM growth 3Y3.31%
OM growth 5Y2.66%
PM growth 3Y4.19%
PM growth 5Y3.84%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.5 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 42.86% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 7.7 | ||
| Cash Conversion | 69.39% | ||
| Profit Quality | 98.76% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.66 |
F-Score8
WACC8.57%
ROIC/WACC1.13
Cap/Depr(3y)30.4%
Cap/Depr(5y)40.09%
Cap/Sales(3y)1.52%
Cap/Sales(5y)2.07%
Profit Quality(3y)122.83%
Profit Quality(5y)133.06%
High Growth Momentum
Growth
EPS 1Y (TTM)30.4%
EPS 3Y18.47%
EPS 5Y17.97%
EPS Q2Q%28.17%
EPS Next Y34.86%
EPS Next 2Y21.22%
EPS Next 3Y16.85%
EPS Next 5YN/A
Revenue 1Y (TTM)12.48%
Revenue growth 3Y17.66%
Revenue growth 5Y16.15%
Sales Q2Q%11.08%
Revenue Next Year12.77%
Revenue Next 2Y10.8%
Revenue Next 3Y9.76%
Revenue Next 5YN/A
EBIT growth 1Y17.93%
EBIT growth 3Y21.56%
EBIT growth 5Y19.24%
EBIT Next Year32.05%
EBIT Next 3Y15.3%
EBIT Next 5YN/A
FCF growth 1Y39.01%
FCF growth 3Y13.06%
FCF growth 5Y12.33%
OCF growth 1Y43.24%
OCF growth 3Y11.84%
OCF growth 5Y12.21%