BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRO - US1152361010 - Common Stock
78.07 USD
-1.04 (-1.31%)
78.07 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BRO. BRO was compared to 149 industry peers in the Insurance industry. BRO has an average financial health and profitability rating. BRO is quite expensive at the moment. It does show a decent growth rate.
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.
- Each year in the past 5 years BRO has been profitable.
- In the past 5 years BRO always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 3.36%, BRO is doing good in the industry, outperforming 68.46% of the companies in the same industry.
- With a Return On Equity value of 7.97%, BRO is not doing good in the industry: 66.44% of the companies in the same industry are doing better.
- With an excellent Return On Invested Capital value of 5.43%, BRO belongs to the best of the industry, outperforming 81.21% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BRO is significantly below the industry average of 14.92%.
| 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 86.58% of the companies in the same industry.
- In the last couple of years the Profit Margin of BRO has grown nicely.
- The Operating Margin of BRO (29.15%) is better than 91.28% of its industry peers.
- 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.
- The number of shares outstanding for BRO has been increased compared to 1 year ago.
- BRO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BRO has an improved debt to assets ratio.
2.2 Solvency
- BRO has an Altman-Z score of 1.68. This is a bad value and indicates that BRO is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.68, BRO belongs to the best of the industry, outperforming 87.25% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 5.95, BRO is doing worse than 65.10% of the companies in the same industry.
- BRO has a Debt/Equity ratio of 0.62. This is a neutral value indicating BRO is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.62, BRO is not doing good in the industry: 77.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.65
WACC8.3%
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.
- Looking at the Current ratio, with a value of 1.18, BRO belongs to the top of the industry, outperforming 83.22% of the companies in the same industry.
- A Quick Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
- The Quick ratio of BRO (1.18) is better than 83.22% 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.
- BRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.36% yearly.
- BRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.85%.
- 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 10.69% on average per year.
- The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y11.02%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue Next Year25.3%
Revenue Next 2Y24.22%
Revenue Next 3Y18.2%
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 18.46.
- 65.10% of the companies in the same industry are cheaper than BRO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, BRO is valued a bit cheaper.
- BRO is valuated correctly with a Price/Forward Earnings ratio of 16.50.
- Based on the Price/Forward Earnings ratio, BRO is valued a bit more expensive than the industry average as 63.09% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, BRO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
- 65.77% of the companies in the same industry are cheaper than BRO, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 63.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 17.58 |
4.3 Compensation for Growth
- The 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)1.59
PEG (5Y)0.83
EPS Next 2Y11.02%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
- BRO has a yearly dividend return of 0.83%, which is pretty low.
- BRO's Dividend Yield is slightly below the industry average, which is at 2.53.
- With a Dividend Yield of 0.83, BRO pays less dividend than the S&P500 average, which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
- 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 2Y11.02%
EPS Next 3Y10.69%
78.07
-1.04 (-1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-27 2025-10-27/amc
Earnings (Next)01-26 2026-01-26/amc
Inst Owners80.99%
Inst Owner Change0.23%
Ins Owners13.08%
Ins Owner Change-0.06%
Market Cap26.65B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts66.96
Price Target94.21 (20.67%)
Short Float %4.46%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP18.24%
Div Incr Years31
Div Non Decr Years34
Ex-DateN/A
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)-2.57%
PT rev (3m)-15.98%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 16.5 | ||
| P/S | 4.87 | ||
| P/FCF | 20.52 | ||
| P/OCF | 19.5 | ||
| P/B | 2.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.58 |
EPS(TTM)4.23
EY5.42%
EPS(NY)4.73
Fwd EY6.06%
FCF(TTM)3.8
FCFY4.87%
OCF(TTM)4
OCFY5.13%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)1.59
PEG (5Y)0.83
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 | 1.68 |
F-Score4
WACC8.3%
ROIC/WACC0.65
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 Y11.59%
EPS Next 2Y11.02%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue 1Y (TTM)17.85%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%35.41%
Revenue Next Year25.3%
Revenue Next 2Y24.22%
Revenue Next 3Y18.2%
Revenue Next 5Y7.67%
EBIT growth 1Y14.4%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year36.54%
EBIT Next 3Y22.32%
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 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 18.46 and the Price/Book (PB) ratio is 2.15.
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%.