BROWN & BROWN INC (BRO) Fundamental Analysis & Valuation

NYSE:BRO • US1152361010

Current stock price

61.64 USD
-1.5 (-2.38%)
At close:
61.28 USD
-0.36 (-0.58%)
Pre-Market:

This BRO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. BRO Profitability Analysis

1.1 Basic Checks

  • In the past year BRO was profitable.
  • 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.
BRO Yearly Net Income VS EBIT VS OCF VS FCFBRO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • BRO's Return On Assets of 3.47% is fine compared to the rest of the industry. BRO outperforms 63.95% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.30%, BRO is doing worse than 63.95% of the companies in the same industry.
  • The Return On Invested Capital of BRO (6.04%) is better than 77.55% of its industry peers.
  • BRO had an Average Return On Invested Capital over the past 3 years of 8.52%. This is in line with the industry average of 9.60%.
Industry RankSector 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%
BRO Yearly ROA, ROE, ROICBRO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • BRO has a Profit Margin of 17.64%. This is in the better half of the industry: BRO outperforms 78.91% of its industry peers.
  • BRO's Profit Margin has been stable in the last couple of years.
  • With an excellent Operating Margin value of 28.72%, BRO belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
  • BRO's Operating Margin has improved in the last couple of years.
Industry RankSector 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
BRO Yearly Profit, Operating, Gross MarginsBRO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

2. BRO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRO is creating some value.
  • Compared to 1 year ago, BRO has more shares outstanding
  • The number of shares outstanding for BRO has been increased compared to 5 years ago.
  • Compared to 1 year ago, BRO has a worse debt to assets ratio.
BRO Yearly Shares OutstandingBRO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
BRO Yearly Total Debt VS Total AssetsBRO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • BRO has an Altman-Z score of 1.44. This is a bad value and indicates that BRO is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.44, BRO belongs to the top of the industry, outperforming 84.35% of the companies in the same industry.
  • 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's Debt to FCF ratio of 5.51 is on the low side compared to the rest of the industry. BRO is outperformed by 67.35% of its industry peers.
  • BRO has a Debt/Equity ratio of 0.55. This is a neutral value indicating BRO is somewhat dependend on debt financing.
  • BRO has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: BRO underperforms 76.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 5.51
Altman-Z 1.44
ROIC/WACC0.76
WACC7.94%
BRO Yearly LT Debt VS Equity VS FCFBRO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • BRO has a Current 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.
  • Looking at the Current ratio, with a value of 1.04, BRO belongs to the top of the industry, outperforming 80.27% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 1.04, BRO belongs to the top of the industry, outperforming 80.27% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.04
BRO Yearly Current Assets VS Current LiabilitesBRO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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6

3. BRO Growth Analysis

3.1 Past

  • BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.28%, 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.
  • Looking at the last year, BRO shows a very strong growth in Revenue. The Revenue has grown by 22.83%.
  • Measured over the past years, BRO shows a quite strong growth in Revenue. The Revenue has been growing by 17.70% on average per year.
EPS 1Y (TTM)10.28%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%7.75%
Revenue 1Y (TTM)22.83%
Revenue growth 3Y18.21%
Revenue growth 5Y17.7%
Sales Q2Q%35.4%

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 8.05% 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 Y6.31%
EPS Next 2Y8.14%
EPS Next 3Y8.05%
EPS Next 5YN/A
Revenue Next Year20.57%
Revenue Next 2Y13.5%
Revenue Next 3Y10.35%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BRO Yearly Revenue VS EstimatesBRO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B
BRO Yearly EPS VS EstimatesBRO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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2

4. BRO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 14.01 indicates a correct valuation of BRO.
  • BRO's Price/Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 65.31% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.54, BRO is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 12.26, 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 60.54% of the companies listed in the same industry.
  • BRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.68.
Industry RankSector Rank
PE 14.01
Fwd PE 12.26
BRO Price Earnings VS Forward Price EarningsBRO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRO.
  • Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than the industry average as 61.22% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 15.15
EV/EBITDA 13.32
BRO Per share dataBRO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 30

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)2.22
PEG (5Y)0.68
EPS Next 2Y8.14%
EPS Next 3Y8.05%

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5

5. BRO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.07%, BRO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.37, BRO is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, BRO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.07%

5.2 History

  • On average, the dividend of BRO grows each year by 11.74%, 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 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 Years32
Div Non Decr Years34
BRO Yearly Dividends per shareBRO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • 18.54% of the earnings are spent on dividend by BRO. This is a low number and sustainable payout ratio.
  • The dividend of BRO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.54%
EPS Next 2Y8.14%
EPS Next 3Y8.05%
BRO Yearly Income VS Free CF VS DividendBRO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
BRO Dividend Payout.BRO Dividend Payout, showing the Payout Ratio.BRO Dividend Payout.PayoutRetained Earnings

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BRO Fundamentals: All Metrics, Ratios and Statistics

BROWN & BROWN INC

NYSE:BRO (4/29/2026, 8:04:00 PM)

Premarket: 61.28 -0.36 (-0.58%)

61.64

-1.5 (-2.38%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Industry Strength3.73
Industry Growth86.34
Earnings (Last)04-27
Earnings (Next)07-27
Inst Owners83.18%
Inst Owner Change0.07%
Ins Owners13.14%
Ins Owner Change1.74%
Market Cap20.93B
Revenue(TTM)5.90B
Net Income(TTM)1.04B
Analysts65.83
Price Target82.11 (33.21%)
Short Float %6.25%
Short Ratio5.9
Dividend
Industry RankSector Rank
Dividend Yield 1.07%
Yearly Dividend0.62
Dividend Growth(5Y)11.74%
DP18.54%
Div Incr Years32
Div Non Decr Years34
Ex-Date02-04
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)-4.18%
PT rev (3m)-12.2%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-4.06%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.96%
Valuation
Industry RankSector Rank
PE 14.01
Fwd PE 12.26
P/S 3.55
P/FCF 15.15
P/OCF 14.43
P/B 1.67
P/tB N/A
EV/EBITDA 13.32
EPS(TTM)4.4
EY7.14%
EPS(NY)5.03
Fwd EY8.16%
FCF(TTM)4.07
FCFY6.6%
OCF(TTM)4.27
OCFY6.93%
SpS17.38
BVpS36.95
TBVpS-21.93
PEG (NY)2.22
PEG (5Y)0.68
Graham Number60.4824 (-1.88%)
Profitability
Industry RankSector 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 RankSector 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 1.44
F-Score3
WACC7.94%
ROIC/WACC0.76
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)10.28%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%7.75%
EPS Next Y6.31%
EPS Next 2Y8.14%
EPS Next 3Y8.05%
EPS Next 5YN/A
Revenue 1Y (TTM)22.83%
Revenue growth 3Y18.21%
Revenue growth 5Y17.7%
Sales Q2Q%35.4%
Revenue Next Year20.57%
Revenue Next 2Y13.5%
Revenue Next 3Y10.35%
Revenue Next 5Y3.68%
EBIT growth 1Y15.62%
EBIT growth 3Y20.29%
EBIT growth 5Y20.18%
EBIT Next Year47.25%
EBIT Next 3Y18.53%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for BROWN & BROWN INC?

ChartMill assigns a fundamental rating of 5 / 10 to BRO.


Can you provide the valuation status for BROWN & BROWN INC?

ChartMill assigns a valuation rating of 2 / 10 to BROWN & BROWN INC (BRO). This can be considered as Overvalued.


How profitable is BROWN & BROWN INC (BRO) stock?

BROWN & BROWN INC (BRO) has a profitability rating of 6 / 10.


What is the financial health of BROWN & BROWN INC (BRO) stock?

The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.


Is the dividend of BROWN & BROWN INC sustainable?

The dividend rating of BROWN & BROWN INC (BRO) is 5 / 10 and the dividend payout ratio is 18.54%.