BROWN & BROWN INC (BRO) Fundamental Analysis & Valuation
NYSE:BRO • US1152361010
71.04 USD
-2.46 (-3.35%)
At close: Mar 9, 2026
71.04 USD
0 (0%)
After Hours: 3/9/2026, 8:04:00 PM
This BRO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to BRO. BRO was compared to 149 industry peers in the Insurance industry. While BRO is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, BRO is valued expensive at the moment.
1. BRO Profitability Analysis
1.1 Basic Checks
- BRO had positive earnings in the past year.
- In the past year BRO had a positive cash flow from operations.
- In the past 5 years BRO has always been profitable.
- 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 3.47%, BRO is in the better half of the industry, outperforming 67.11% of the companies in the same industry.
- BRO has a Return On Equity (8.30%) which is comparable to the rest of the industry.
- BRO has a Return On Invested Capital of 6.04%. This is amongst the best in the industry. BRO outperforms 83.22% 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 15.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.3% | ||
| ROIC | 6.04% |
ROA(3y)4.94%
ROA(5y)5.08%
ROE(3y)12.99%
ROE(5y)13.39%
ROIC(3y)8.52%
ROIC(5y)8.58%
1.3 Margins
- BRO has a Profit Margin of 17.64%. This is amongst the best in the industry. BRO outperforms 82.55% of its industry peers.
- BRO's Profit Margin has been stable in the last couple of years.
- BRO has a Operating Margin of 28.72%. This is amongst the best in the industry. BRO outperforms 89.93% of its industry peers.
- In the last couple of years the Operating Margin of BRO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.72% | ||
| PM (TTM) | 17.64% | ||
| GM | N/A |
OM growth 3Y1.76%
OM growth 5Y2.11%
PM growth 3Y-1.42%
PM growth 5Y-0.15%
GM growth 3YN/A
GM growth 5YN/A
2. BRO Health Analysis
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
- BRO has more shares outstanding than it did 5 years ago.
- BRO has a worse debt/assets ratio than last year.
2.2 Solvency
- BRO has an Altman-Z score of 1.58. This is a bad value and indicates that BRO is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of BRO (1.58) is better than 88.59% of its industry peers.
- The Debt to FCF ratio of BRO is 5.51, which is a neutral value as it means it would take BRO, 5.51 years of fcf income to pay off all of its debts.
- BRO has a worse Debt to FCF ratio (5.51) than 63.09% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that BRO is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.55, BRO is not doing good in the industry: 75.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.51 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.77
WACC7.84%
2.3 Liquidity
- A Current Ratio of 1.04 indicates that BRO should not have too much problems paying its short term obligations.
- The Current ratio of BRO (1.04) is better than 79.87% of its industry peers.
- BRO has a Quick Ratio of 1.04. 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 Quick ratio (1.04) than 79.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. BRO Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 11.98% over the past year.
- BRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.54% yearly.
- The Revenue has grown by 22.83% in the past year. This is a very strong growth!
- The Revenue has been growing by 17.70% on average over the past years. This is quite good.
EPS 1Y (TTM)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
Revenue 1Y (TTM)22.83%
Revenue growth 3Y18.21%
Revenue growth 5Y17.7%
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 8.16% yearly.
- BRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.68% yearly.
EPS Next Y6.09%
EPS Next 2Y8.23%
EPS Next 3Y8.16%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. BRO Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.52 indicates a correct valuation of BRO.
- Based on the Price/Earnings ratio, BRO is valued a bit more expensive than 67.79% of the companies in the same industry.
- BRO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
- With a Price/Forward Earnings ratio of 15.57, 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 65.10% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.65, BRO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
- 60.40% of the companies in the same industry are cheaper than BRO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than the industry average as 63.09% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.5 | ||
| EV/EBITDA | 15.3 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of BRO may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)0.8
EPS Next 2Y8.23%
EPS Next 3Y8.16%
5. BRO Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.90%, BRO is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.89, BRO is paying slightly less dividend.
- With a Dividend Yield of 0.90, BRO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
- On average, the dividend of BRO grows each year by 11.74%, 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)11.74%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
- 18.54% of the earnings are spent on dividend by BRO. This is a low number and sustainable payout ratio.
- BRO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.54%
EPS Next 2Y8.23%
EPS Next 3Y8.16%
BRO Fundamentals: All Metrics, Ratios and Statistics
71.04
-2.46 (-3.35%)
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 Owners82.62%
Inst Owner Change2.55%
Ins Owners13.09%
Ins Owner Change1.74%
Market Cap24.18B
Revenue(TTM)5.90B
Net Income(TTM)1.04B
Analysts65.22
Price Target86.32 (21.51%)
Short Float %5.77%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.62
Dividend Growth(5Y)11.74%
DP18.54%
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)6.52%
Min EPS beat(2)2.26%
Max EPS beat(2)10.78%
EPS beat(4)3
Avg EPS beat(4)3.5%
Min EPS beat(4)-2.08%
Max EPS beat(4)10.78%
EPS beat(8)7
Avg EPS beat(8)5.02%
EPS beat(12)11
Avg EPS beat(12)6.41%
EPS beat(16)14
Avg EPS beat(16)4.52%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-3.54%
Max Revenue beat(2)4.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)4.08%
Revenue beat(8)5
Avg Revenue beat(8)1.07%
Revenue beat(12)9
Avg Revenue beat(12)1.79%
Revenue beat(16)11
Avg Revenue beat(16)1.38%
PT rev (1m)-0.31%
PT rev (3m)-10.74%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-4.84%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-3.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 15.57 | ||
| P/S | 4.1 | ||
| P/FCF | 17.5 | ||
| P/OCF | 16.68 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.3 |
EPS(TTM)4.3
EY6.05%
EPS(NY)4.56
Fwd EY6.42%
FCF(TTM)4.06
FCFY5.71%
OCF(TTM)4.26
OCFY6%
SpS17.34
BVpS36.86
TBVpS-21.87
PEG (NY)2.71
PEG (5Y)0.8
Graham Number59.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 8.3% | ||
| ROCE | 7.81% | ||
| ROIC | 6.04% | ||
| ROICexc | 6.36% | ||
| ROICexgc | 209.81% | ||
| OM | 28.72% | ||
| PM (TTM) | 17.64% | ||
| GM | N/A | ||
| FCFM | 23.42% |
ROA(3y)4.94%
ROA(5y)5.08%
ROE(3y)12.99%
ROE(5y)13.39%
ROIC(3y)8.52%
ROIC(5y)8.58%
ROICexc(3y)9.08%
ROICexc(5y)9.31%
ROICexgc(3y)239.08%
ROICexgc(5y)209.68%
ROCE(3y)11.01%
ROCE(5y)11.09%
ROICexgc growth 3Y7.45%
ROICexgc growth 5Y5.82%
ROICexc growth 3Y-9.73%
ROICexc growth 5Y-6.83%
OM growth 3Y1.76%
OM growth 5Y2.11%
PM growth 3Y-1.42%
PM growth 5Y-0.15%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.51 | ||
| Debt/EBITDA | 3.34 | ||
| Cap/Depr | 18.53% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 5.97 | ||
| Cash Conversion | 70.32% | ||
| Profit Quality | 132.76% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.58 |
F-Score3
WACC7.84%
ROIC/WACC0.77
Cap/Depr(3y)29.64%
Cap/Depr(5y)29.33%
Cap/Sales(3y)1.49%
Cap/Sales(5y)1.48%
Profit Quality(3y)117.85%
Profit Quality(5y)122.47%
High Growth Momentum
Growth
EPS 1Y (TTM)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
EPS Next Y6.09%
EPS Next 2Y8.23%
EPS Next 3Y8.16%
EPS Next 5YN/A
Revenue 1Y (TTM)22.83%
Revenue growth 3Y18.21%
Revenue growth 5Y17.7%
Sales Q2Q%35.73%
Revenue Next Year20.85%
Revenue Next 2Y13.64%
Revenue Next 3Y10.43%
Revenue Next 5Y3.68%
EBIT growth 1Y15.62%
EBIT growth 3Y20.29%
EBIT growth 5Y20.18%
EBIT Next Year48.79%
EBIT Next 3Y18.78%
EBIT Next 5Y10.01%
FCF growth 1Y26.56%
FCF growth 3Y18.58%
FCF growth 5Y16.25%
OCF growth 1Y23.51%
OCF growth 3Y18.05%
OCF growth 5Y14.98%
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 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 16.52 and the Price/Book (PB) ratio is 1.93.
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 18.54%.