BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BRO • US1152361010
68.67 USD
-5.11 (-6.93%)
At close: Feb 9, 2026
69.2 USD
+0.53 (+0.77%)
After Hours: 2/9/2026, 8:04:00 PM
Taking everything into account, BRO scores 4 out of 10 in our fundamental rating. 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year BRO was profitable.
- In the past year BRO had a positive cash flow from operations.
- 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 Return On Assets of 3.36%. This is in the better half of the industry: BRO outperforms 69.13% 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 better Return On Invested Capital (5.43%) than 81.21% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BRO is significantly below the industry average of 14.88%.
| 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.
- In the last couple of years the Profit Margin of BRO has grown nicely.
- 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.
- BRO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- BRO has an Altman-Z score of 1.63. This is a bad value and indicates that BRO is not financially healthy and even has some risk of bankruptcy.
- BRO has a Altman-Z score of 1.63. This is amongst the best in the industry. BRO outperforms 88.59% of its industry peers.
- The Debt to FCF ratio of BRO is 5.95, which is a neutral value as it means it would take BRO, 5.95 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 5.95, BRO is not doing good in the industry: 64.43% of the companies in the same industry are doing better.
- BRO has a Debt/Equity ratio of 0.62. This is a neutral value indicating BRO is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.62, BRO is not doing good in the industry: 76.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.67
WACC8.16%
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 better Current ratio (1.18) than 83.22% of its industry peers.
- BRO has a Quick 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's Quick ratio of 1.18 is amongst the best of 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
- The Earnings Per Share has grown by an nice 11.98% over the past year.
- Measured over the past years, BRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.54% on average per year.
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
- BRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.10% yearly.
- The Revenue is expected to grow by 3.68% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- BRO is valuated correctly with a Price/Earnings ratio of 15.97.
- 62.42% of the companies in the same industry are cheaper than BRO, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.06. BRO is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 15.06, which indicates a correct valuation of BRO.
- 62.42% of the companies in the same industry are cheaper than BRO, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BRO to the average of the S&P500 Index (27.86), we can say BRO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than 62.42% of the companies in the same industry.
- BRO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRO is more expensive than 61.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.05 | ||
| EV/EBITDA | 16.81 |
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)2.63
PEG (5Y)0.78
EPS Next 2Y8.2%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
- BRO has a yearly dividend return of 0.91%, which is pretty low.
- BRO's Dividend Yield is comparable with the industry average which is at 2.23.
- With a Dividend Yield of 0.91, BRO pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
- The dividend of BRO is nicely growing with an annual growth rate of 10.65%!
- BRO has been paying a dividend for at least 10 years, so it has 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%
68.67
-5.11 (-6.93%)
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 Change-0.62%
Ins Owners13.08%
Ins Owner Change-0.17%
Market Cap23.45B
Revenue(TTM)N/A
Net Income(TTM)987.00M
Analysts66.96
Price Target86.59 (26.1%)
Short Float %4.56%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)-0.77%
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)-0.03%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 15.06 | ||
| P/S | 4.28 | ||
| P/FCF | 18.05 | ||
| P/OCF | 17.15 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.81 |
EPS(TTM)4.3
EY6.26%
EPS(NY)4.56
Fwd EY6.64%
FCF(TTM)3.8
FCFY5.54%
OCF(TTM)4
OCFY5.83%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)2.63
PEG (5Y)0.78
Graham Number59.24
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 | 1.63 |
F-Score4
WACC8.16%
ROIC/WACC0.67
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 15.97 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%.