BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - NYSE:BRO - US1152361010 - Common Stock
78.81 USD
-1.12 (-1.4%)
Overall BRO gets a fundamental rating of 5 out of 10. We evaluated BRO against 147 industry peers in the Insurance industry. While BRO belongs to the best of the industry regarding profitability, 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.
In the past 5 years BRO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BRO (3.36%) is better than 68.03% of its industry peers.
BRO's Return On Equity of 7.97% is on the low side compared to the rest of the industry. BRO is outperformed by 66.67% of its industry peers.
BRO has a Return On Invested Capital of 5.43%. This is amongst the best in the industry. BRO outperforms 84.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRO is above the industry average of 4.39%.
| 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
The Profit Margin of BRO (18.02%) is better than 85.71% of its industry peers.
BRO's Profit Margin has improved in the last couple of years.
The Operating Margin of BRO (29.15%) is better than 93.20% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRO is still creating some value.
BRO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BRO has more shares outstanding
BRO has a better debt/assets ratio than last year.
2.2 Solvency
BRO has an Altman-Z score of 1.66. 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 1.66. This is amongst the best in the industry. BRO outperforms 86.39% 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 Debt to FCF ratio of 5.95. This is in the lower half of the industry: BRO underperforms 64.63% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that BRO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, BRO is doing worse than 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.67
WACC8.13%
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 82.31% 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 has a better Quick ratio (1.18) than 82.31% 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 18.82% over the past year.
The Earnings Per Share has been growing by 22.36% on average over the past years. This is a very strong growth
Looking at the last year, BRO shows a quite strong growth in Revenue. The Revenue has grown by 17.85% 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)18.82%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%15.38%
Revenue 1Y (TTM)17.85%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%35.41%
3.2 Future
The Earnings Per Share is expected to grow by 11.14% 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 Y11.26%
EPS Next 2Y11.49%
EPS Next 3Y11.15%
EPS Next 5YN/A
Revenue Next Year24.03%
Revenue Next 2Y24.19%
Revenue Next 3Y18.44%
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.
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. Valuation
4.1 Price/Earnings Ratio
BRO is valuated rather expensively with a Price/Earnings ratio of 18.63.
Compared to the rest of the industry, the Price/Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 69.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, BRO is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.51, which indicates a correct valuation of BRO.
65.99% of the companies in the same industry are cheaper than BRO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.42. BRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 65.31% of the companies listed in the same industry.
61.90% of the companies in the same industry are cheaper than BRO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.01 | ||
| EV/EBITDA | 17.23 |
4.3 Compensation for Growth
BRO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BRO may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)0.83
EPS Next 2Y11.49%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, BRO is not a good candidate for dividend investing.
BRO's Dividend Yield is slightly below the industry average, which is at 3.51.
Compared to an average S&P500 Dividend Yield of 2.44, BRO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of BRO grows each year by 10.65%, 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)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.
The dividend of BRO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.24%
EPS Next 2Y11.49%
EPS Next 3Y11.15%
NYSE:BRO (11/19/2025, 2:58:28 PM)
78.81
-1.12 (-1.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.94%
Inst Owner Change-0.07%
Ins Owners13.55%
Ins Owner Change0.19%
Market Cap25.99B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts71
Price Target110.88 (40.69%)
Short Float %3.44%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP18.24%
Div Incr Years31
Div Non Decr Years34
Ex-Date
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)-1.12%
PT rev (3m)-2.3%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)5.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 16.51 | ||
| P/S | 4.75 | ||
| P/FCF | 20.01 | ||
| P/OCF | 19.02 | ||
| P/B | 2.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.23 |
EPS(TTM)4.23
EY5.37%
EPS(NY)4.77
Fwd EY6.06%
FCF(TTM)3.94
FCFY5%
OCF(TTM)4.14
OCFY5.26%
SpS16.61
BVpS37.55
TBVpS-22.61
PEG (NY)1.66
PEG (5Y)0.83
Graham Number59.78
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 | 1.66 |
F-Score4
WACC8.13%
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)18.82%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%15.38%
EPS Next Y11.26%
EPS Next 2Y11.49%
EPS Next 3Y11.15%
EPS Next 5YN/A
Revenue 1Y (TTM)17.85%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%35.41%
Revenue Next Year24.03%
Revenue Next 2Y24.19%
Revenue Next 3Y18.44%
Revenue Next 5Y7.67%
EBIT growth 1Y14.4%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year35.56%
EBIT Next 3Y22.96%
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 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 18.63 and the Price/Book (PB) ratio is 2.1.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.