BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRO - US1152361010 - Common Stock
79.84 USD
-1.34 (-1.65%)
79.8 USD
-0.04 (-0.05%)
We assign a fundamental rating of 5 out of 10 to BRO. BRO was compared to 148 industry peers in the Insurance industry. BRO has an excellent profitability rating, but there are some minor concerns on its financial health. BRO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
In the past 5 years BRO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.36%, BRO is in the better half of the industry, outperforming 66.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.97%, BRO is doing worse than 68.92% of the companies in the same industry.
BRO's Return On Invested Capital of 5.43% is amongst the best of the industry. BRO outperforms 83.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRO is above the industry average of 4.57%.
| 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 85.14% of its industry peers.
In the last couple of years the Profit Margin of BRO has grown nicely.
Looking at the Operating Margin, with a value of 29.15%, BRO belongs to the top of the industry, outperforming 92.57% of the companies in the same industry.
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
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
Compared to 5 years ago, BRO has more shares outstanding
BRO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that BRO is in the distress zone and has some risk of bankruptcy.
BRO has a better Altman-Z score (1.70) 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.
The Debt to FCF ratio of BRO (5.95) is worse 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.
BRO has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: BRO underperforms 79.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.67
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
BRO has a Current ratio of 1.18. This is amongst the best in the industry. BRO outperforms 82.43% 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.
The Quick ratio of BRO (1.18) is better than 82.43% 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 18.82%, 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 22.36% on average per year.
The Revenue has grown by 17.85% in the past year. This is quite good.
BRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
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
Based on estimates for the next years, BRO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.14% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 18.87.
BRO's Price/Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 68.92% 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 26.15.
With a Price/Forward Earnings ratio of 16.73, BRO is valued correctly.
BRO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 66.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BRO to the average of the S&P500 Index (36.22), we can say BRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.73 |
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 64.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than 64.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.98 | ||
| EV/EBITDA | 17.9 |
4.3 Compensation for Growth
BRO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)0.84
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.
Compared to an average industry Dividend Yield of 3.32, BRO is paying slightly less dividend.
With a Dividend Yield of 0.82, BRO pays less dividend than the S&P500 average, which is at 2.32.
| 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 paid a dividend for at least 10 years, which is 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
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 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%
79.84
-1.34 (-1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.94%
Inst Owner Change-0.56%
Ins Owners13.55%
Ins Owner Change0.1%
Market Cap27.26B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts71
Price Target98.96 (23.95%)
Short Float %3.53%
Short Ratio3.67
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)-10.76%
PT rev (3m)-11.75%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.73 | ||
| P/S | 4.98 | ||
| P/FCF | 20.98 | ||
| P/OCF | 19.94 | ||
| P/B | 2.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.9 |
EPS(TTM)4.23
EY5.3%
EPS(NY)4.77
Fwd EY5.98%
FCF(TTM)3.8
FCFY4.77%
OCF(TTM)4
OCFY5.01%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)1.68
PEG (5Y)0.84
Graham Number58.76
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 | 1.7 |
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 18.87 and the Price/Book (PB) ratio is 2.2.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.