BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - NYSE:BRO - US1152361010 - Common Stock
88 USD
-0.77 (-0.87%)
88 USD
0 (0%)
Overall BRO gets a fundamental rating of 5 out of 10. We evaluated BRO against 147 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.
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.
BRO had positive earnings in each of the past 5 years.
BRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRO's Return On Assets of 3.87% is fine compared to the rest of the industry. BRO outperforms 77.55% of its industry peers.
BRO has a Return On Equity (8.56%) which is in line with its industry peers.
BRO has a Return On Invested Capital of 5.75%. This is amongst the best in the industry. BRO outperforms 85.03% of its industry peers.
BRO had an Average Return On Invested Capital over the past 3 years of 9.07%. This is above the industry average of 4.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.56% | ||
| ROIC | 5.75% |
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 (19.63%) than 89.80% of its industry peers.
BRO's Profit Margin has improved in the last couple of years.
BRO has a better Operating Margin (30.31%) than 97.28% of its industry peers.
In the last couple of years the Operating Margin of BRO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.31% | ||
| PM (TTM) | 19.63% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRO is creating some value.
Compared to 1 year ago, BRO has more shares outstanding
Compared to 5 years ago, BRO has more shares outstanding
BRO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that BRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BRO (2.44) is better than 90.48% of its industry peers.
BRO has a debt to FCF ratio of 5.97. This is a neutral value as BRO would need 5.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.97, BRO is doing worse than 61.22% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that BRO is somewhat dependend on debt financing.
BRO has a worse Debt to Equity ratio (0.64) than 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.97 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.71
WACC8.09%
2.3 Liquidity
A Current Ratio of 2.75 indicates that BRO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.75, BRO belongs to the top of the industry, outperforming 91.16% of the companies in the same industry.
BRO has a Quick Ratio of 2.75. This indicates that BRO is financially healthy and has no problem in meeting its short term obligations.
BRO's Quick ratio of 2.75 is amongst the best of the industry. BRO outperforms 91.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 |
3. Growth
3.1 Past
BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.73%, which is quite impressive.
BRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.36% yearly.
Looking at the last year, BRO shows a quite strong growth in Revenue. The Revenue has grown by 11.66% in the last year.
The Revenue has been growing by 14.97% on average over the past years. This is quite good.
EPS 1Y (TTM)21.73%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%10.75%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%9.08%
3.2 Future
The Earnings Per Share is expected to grow by 11.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y9.81%
EPS Next 2Y11.84%
EPS Next 3Y11.41%
EPS Next 5YN/A
Revenue Next Year23.63%
Revenue Next 2Y24.43%
Revenue Next 3Y18.57%
Revenue Next 5Y7.67%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
A Price/Earnings ratio of 21.52 indicates a rather expensive valuation of BRO.
BRO's Price/Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 74.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. BRO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.32, the valuation of BRO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BRO is valued a bit more expensive than the industry average as 68.03% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, BRO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than 61.22% 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 61.90% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 15.75 |
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)2.19
PEG (5Y)0.96
EPS Next 2Y11.84%
EPS Next 3Y11.41%
5. Dividend
5.1 Amount
BRO has a yearly dividend return of 0.69%, which is pretty low.
BRO's Dividend Yield is slightly below the industry average, which is at 3.30.
With a Dividend Yield of 0.69, BRO pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of BRO grows each year by 10.65%, which is quite nice.
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
BRO pays out 16.62% of its income as dividend. This is a sustainable payout ratio.
BRO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP16.62%
EPS Next 2Y11.84%
EPS Next 3Y11.41%
88
-0.77 (-0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.94%
Inst Owner Change-0.33%
Ins Owners13.55%
Ins Owner Change0.54%
Market Cap29.03B
Revenue(TTM)5.06B
Net Income(TTM)993.00M
Analysts71
Price Target112.13 (27.42%)
Short Float %2.41%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP16.62%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.47%
Min EPS beat(2)-2.08%
Max EPS beat(2)3.03%
EPS beat(4)3
Avg EPS beat(4)3.72%
Min EPS beat(4)-2.08%
Max EPS beat(4)11.02%
EPS beat(8)7
Avg EPS beat(8)6.11%
EPS beat(12)10
Avg EPS beat(12)4.48%
EPS beat(16)14
Avg EPS beat(16)4.72%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.54%
Revenue beat(4)2
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)4.5%
Revenue beat(8)6
Avg Revenue beat(8)1.66%
Revenue beat(12)8
Avg Revenue beat(12)1.45%
Revenue beat(16)12
Avg Revenue beat(16)1.4%
PT rev (1m)0%
PT rev (3m)-7.89%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-1.16%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)15.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 18.32 | ||
| P/S | 5.74 | ||
| P/FCF | 22.96 | ||
| P/OCF | 21.68 | ||
| P/B | 2.5 | ||
| P/tB | 21.3 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)4.09
EY4.65%
EPS(NY)4.8
Fwd EY5.46%
FCF(TTM)3.83
FCFY4.35%
OCF(TTM)4.06
OCFY4.61%
SpS15.33
BVpS35.15
TBVpS4.13
PEG (NY)2.19
PEG (5Y)0.96
Graham Number56.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.56% | ||
| ROCE | 7.52% | ||
| ROIC | 5.75% | ||
| ROICexc | 10.2% | ||
| ROICexgc | 93.36% | ||
| OM | 30.31% | ||
| PM (TTM) | 19.63% | ||
| GM | N/A | ||
| FCFM | 24.99% |
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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.97 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 31.12% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.48% | ||
| Profit Quality | 127.29% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z | 2.44 |
F-Score4
WACC8.09%
ROIC/WACC0.71
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)21.73%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%10.75%
EPS Next Y9.81%
EPS Next 2Y11.84%
EPS Next 3Y11.41%
EPS Next 5YN/A
Revenue 1Y (TTM)11.66%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%9.08%
Revenue Next Year23.63%
Revenue Next 2Y24.43%
Revenue Next 3Y18.57%
Revenue Next 5Y7.67%
EBIT growth 1Y13.14%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year35.56%
EBIT Next 3Y22.96%
EBIT Next 5Y10.16%
FCF growth 1Y46.25%
FCF growth 3Y12.65%
FCF growth 5Y12.53%
OCF growth 1Y44.96%
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 5 / 10 to BRO.
What is the valuation status of BROWN & BROWN INC (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 7 / 10.
What are the PE and PB ratios of BROWN & BROWN INC (BRO) stock?
The Price/Earnings (PE) ratio for BROWN & BROWN INC (BRO) is 21.52 and the Price/Book (PB) ratio is 2.5.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 5 / 10.