BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BRO • US1152361010
71.91 USD
-0.19 (-0.26%)
Last: Jan 30, 2026, 11:24 AM
Taking everything into account, BRO scores 4 out of 10 in our fundamental rating. BRO was compared to 148 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's Return On Assets of 3.36% is fine compared to the rest of the industry. BRO outperforms 68.92% of its industry peers.
- With a Return On Equity value of 7.97%, BRO is not doing good in the industry: 66.22% of the companies in the same industry are doing better.
- The Return On Invested Capital of BRO (5.43%) is better than 81.76% of its industry peers.
- BRO had an Average Return On Invested Capital over the past 3 years of 9.07%. This is significantly below the industry average of 14.94%.
| 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's Profit Margin of 18.02% is amongst the best of the industry. BRO outperforms 86.49% 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 91.22% of its industry peers.
- In the last couple of years the Operating Margin of BRO has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRO 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 1.61, we must say that BRO is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of BRO (1.61) is better than 87.16% 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.
- BRO has a worse Debt to FCF ratio (5.95) than 64.86% of its industry peers.
- BRO has a Debt/Equity ratio of 0.62. This is a neutral value indicating BRO is somewhat dependend on debt financing.
- The Debt to Equity ratio of BRO (0.62) is worse than 77.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.66
WACC8.22%
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 83.11% 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 83.11% 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.
- 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
- The Earnings Per Share is expected to grow by 9.35% 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 3.67% yearly.
EPS Next Y8.72%
EPS Next 2Y9.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.96%
Revenue Next 2Y14.74%
Revenue Next 3Y2.71%
Revenue Next 5Y3.67%
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
- A Price/Earnings ratio of 16.72 indicates a correct valuation of BRO.
- Based on the Price/Earnings ratio, BRO is valued a bit more expensive than 62.84% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, BRO is valued a bit cheaper.
- The Price/Forward Earnings ratio is 15.38, which indicates a correct valuation of BRO.
- BRO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 62.84% of the companies in the same industry.
- BRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
- BRO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BRO is more expensive than 62.84% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 61.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.9 | ||
| EV/EBITDA | 16.5 |
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)1.92
PEG (5Y)0.81
EPS Next 2Y9.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.92%, BRO is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.41, BRO is paying slightly less dividend.
- With a Dividend Yield of 0.92, BRO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.65%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
- BRO pays out 18.24% of its income as dividend. This is a sustainable payout ratio.
- BRO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.24%
EPS Next 2Y9.35%
EPS Next 3YN/A
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 16.72 and the Price/Book (PB) ratio is 1.98.
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%.