BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BRO • US1152361010
74.03 USD
+2.24 (+3.12%)
Last: Feb 4, 2026, 03:28 PM
We assign a fundamental rating of 4 out of 10 to BRO. BRO was compared to 147 industry peers in the Insurance industry. BRO has only an average score on both its financial health and profitability. BRO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- BRO had positive earnings in the past year.
- BRO had a positive operating cash flow in the past year.
- BRO had positive earnings in 4 of the past 5 years.
- Of the past 5 years BRO 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BRO (3.36%) is better than 68.71% of its industry peers.
- The Return On Equity of BRO (7.97%) is worse than 66.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.43%, BRO belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BRO 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
- With an excellent Profit Margin value of 18.02%, BRO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- In the last couple of years the Profit Margin of BRO has grown nicely.
- With an excellent Operating Margin value of 29.15%, BRO belongs to the best of the industry, outperforming 91.16% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRO is creating some value.
- BRO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
- BRO has a better Altman-Z score (1.61) than 87.76% of its industry peers.
- BRO has a debt to FCF ratio of 5.95. This is a neutral value as BRO would need 5.95 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 5.95, BRO is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
- BRO has a Debt/Equity ratio of 0.62. This is a neutral value indicating 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 78.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.66
WACC8.24%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
- The Current ratio of BRO (1.18) is better than 83.67% 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's Quick ratio of 1.18 is amongst the best of the industry. BRO outperforms 83.67% 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
- BRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.10% yearly.
- Based on estimates for the next years, BRO will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y6.07%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue Next Year20.85%
Revenue Next 2Y13.64%
Revenue Next 3Y10.43%
Revenue Next 5Y3.68%
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
- BRO is valuated rather expensively with a Price/Earnings ratio of 17.22.
- Based on the Price/Earnings ratio, BRO is valued a bit more expensive than 62.59% of the companies in the same industry.
- BRO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 16.23, BRO is valued correctly.
- 63.27% of the companies in the same industry are cheaper than BRO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, BRO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
- 64.63% of the companies in the same industry are cheaper than BRO, based on the Enterprise Value to EBITDA ratio.
- BRO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRO is more expensive than 62.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.46 | ||
| EV/EBITDA | 16.48 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- BRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)0.84
EPS Next 2Y8.2%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
- BRO has a yearly dividend return of 0.92%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.19, BRO has a dividend in line with its industry peers.
- With a Dividend Yield of 0.92, BRO pays less dividend than the S&P500 average, which is at 1.83.
| 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 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
- 18.24% 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.
DP18.24%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
NYSE:BRO (2/4/2026, 3:28:09 PM)
74.03
+2.24 (+3.12%)
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 Owners80.99%
Inst Owner Change-0.92%
Ins Owners13.08%
Ins Owner Change-0.06%
Market Cap25.28B
Revenue(TTM)N/A
Net Income(TTM)987.00M
Analysts66.96
Price Target86.59 (16.97%)
Short Float %4.56%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP18.24%
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)6.9%
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)-1.77%
PT rev (3m)-15.03%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-3.22%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 16.23 | ||
| P/S | 4.61 | ||
| P/FCF | 19.46 | ||
| P/OCF | 18.49 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.48 |
EPS(TTM)4.3
EY5.81%
EPS(NY)4.56
Fwd EY6.16%
FCF(TTM)3.8
FCFY5.14%
OCF(TTM)4
OCFY5.41%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)2.83
PEG (5Y)0.84
Graham Number59.24
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 | 1.61 |
F-Score4
WACC8.24%
ROIC/WACC0.66
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)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
EPS Next Y6.07%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%35.73%
Revenue Next Year20.85%
Revenue Next 2Y13.64%
Revenue Next 3Y10.43%
Revenue Next 5Y3.68%
EBIT growth 1Y14.4%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year36.8%
EBIT Next 3Y22%
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 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 17.22 and the Price/Book (PB) ratio is 2.04.
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%.