BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - NYSE:BRO - US1152361010 - Common Stock
78.54 USD
+2.12 (+2.77%)
88.1771 USD
+9.64 (+12.27%)
Taking everything into account, BRO scores 5 out of 10 in our fundamental rating. BRO was compared to 146 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. BRO is valied quite expensively at the moment, while 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.
In the past 5 years BRO has always been profitable.
Each year in the past 5 years BRO had a positive operating cash flow.
1.2 Ratios
BRO has a Return On Assets of 3.36%. This is in the better half of the industry: BRO outperforms 69.18% of its industry peers.
The Return On Equity of BRO (7.97%) is worse than 63.01% of its industry peers.
BRO has a Return On Invested Capital of 5.43%. This is amongst the best in the industry. BRO outperforms 83.56% of its industry peers.
BRO had an Average Return On Invested Capital over the past 3 years of 9.07%. This is above the industry average of 4.53%.
| 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
BRO has a better Profit Margin (18.02%) than 88.36% of its industry peers.
In the last couple of years the Profit Margin of BRO has grown nicely.
BRO has a Operating Margin of 29.15%. This is amongst the best in the industry. BRO outperforms 94.52% 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.
BRO has more shares outstanding than it did 1 year ago.
BRO has more shares outstanding than it did 5 years ago.
BRO has a better debt/assets ratio than last year.
2.2 Solvency
BRO has an Altman-Z score of 1.63. 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 1.63. This is amongst the best in the industry. BRO outperforms 87.67% 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: 64.38% 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.
The Debt to Equity ratio of BRO (0.62) is worse than 80.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.67
WACC8.12%
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.
The Current ratio of BRO (1.18) is better than 81.51% 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 81.51% 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.
The Revenue has grown by 17.85% in the past year. This is quite good.
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
BRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.14% yearly.
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.
The Revenue 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
A Price/Earnings ratio of 18.57 indicates a rather expensive valuation of BRO.
Based on the Price/Earnings ratio, BRO is valued a bit more expensive than 66.44% 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 25.83.
The Price/Forward Earnings ratio is 16.46, which indicates a correct valuation of BRO.
Based on the Price/Forward Earnings ratio, BRO is valued a bit more expensive than 63.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BRO to the average of the S&P500 Index (32.68), we can say BRO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 16.46 |
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 64.38% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 16.81 |
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)1.65
PEG (5Y)0.83
EPS Next 2Y11.49%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, BRO is not a good candidate for dividend investing.
BRO's Dividend Yield is slightly below the industry average, which is at 3.33.
Compared to an average S&P500 Dividend Yield of 2.39, BRO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP18.24%
EPS Next 2Y11.49%
EPS Next 3Y11.15%
78.54
+2.12 (+2.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.94%
Inst Owner Change-1.31%
Ins Owners13.55%
Ins Owner Change0.54%
Market Cap25.91B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts71
Price Target110.88 (41.18%)
Short Float %3.16%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)-8.91%
EPS NQ rev (1m)1.8%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)7.53%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)5.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 16.46 | ||
| P/S | 4.73 | ||
| P/FCF | 19.94 | ||
| P/OCF | 18.95 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.81 |
EPS(TTM)4.23
EY5.39%
EPS(NY)4.77
Fwd EY6.08%
FCF(TTM)3.94
FCFY5.01%
OCF(TTM)4.14
OCFY5.28%
SpS16.61
BVpS37.55
TBVpS-22.61
PEG (NY)1.65
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 | 1.63 |
F-Score4
WACC8.12%
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 3 / 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 18.57 and the Price/Book (PB) ratio is 2.09.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.