BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRO - US1152361010 - Common Stock
79.43 USD
+0.37 (+0.47%)
79.43 USD
0 (0%)
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. Both the profitability and the financial health of BRO get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, BRO is valued expensive at the moment.
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.
- BRO had positive earnings in each of the past 5 years.
- BRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BRO has a better Return On Assets (3.36%) than 68.49% of its industry peers.
- Looking at the Return On Equity, with a value of 7.97%, BRO is doing worse than 67.12% of the companies in the same industry.
- BRO has a better Return On Invested Capital (5.43%) than 82.88% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BRO is significantly below the industry average of 15.11%.
| 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 86.30% of its industry peers.
- BRO's Profit Margin has improved in the last couple of years.
- The Operating Margin of BRO (29.15%) is better than 91.10% 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.
- 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 Altman-Z score of 1.70. This is amongst the best in the industry. BRO outperforms 88.36% 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.
- With a Debt to FCF ratio value of 5.95, BRO is not doing good in the industry: 65.75% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.62 indicates that BRO is somewhat dependend on debt financing.
- The Debt to Equity ratio of BRO (0.62) is worse than 78.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.66
WACC8.2%
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.
- BRO has a better Current ratio (1.18) than 82.88% 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.
- Looking at the Quick ratio, with a value of 1.18, BRO belongs to the top of the industry, outperforming 82.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.82% over the past year.
- BRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.36% yearly.
- Looking at the last year, BRO shows a quite strong growth in Revenue. The Revenue has grown by 17.85% in the last year.
- Measured over the past years, BRO shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
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
- The Earnings Per Share is expected to grow by 10.69% on average over the next years. This is quite good.
- Based on estimates for the next years, BRO will show a small growth in Revenue. The Revenue will grow by 7.67% on average per year.
EPS Next Y11.59%
EPS Next 2Y11.02%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue Next Year25.28%
Revenue Next 2Y24.34%
Revenue Next 3Y18.19%
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
- The Price/Earnings ratio is 18.78, which indicates a rather expensive current valuation of BRO.
- 65.07% of the companies in the same industry are cheaper than BRO, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of BRO to the average of the S&P500 Index (27.33), we can say BRO is valued slightly cheaper.
- BRO is valuated correctly with a Price/Forward Earnings ratio of 16.78.
- 63.70% 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 24.12, BRO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
- 66.44% of the companies in the same industry are cheaper than BRO, based on the Enterprise Value to EBITDA ratio.
- 63.70% of the companies in the same industry are cheaper than BRO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.88 | ||
| EV/EBITDA | 17.76 |
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)1.62
PEG (5Y)0.84
EPS Next 2Y11.02%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
- BRO has a yearly dividend return of 0.82%, which is pretty low.
- BRO's Dividend Yield is slightly below the industry average, which is at 2.42.
- With a Dividend Yield of 0.82, BRO pays less dividend than the S&P500 average, which is at 1.91.
| 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.
- 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 2Y11.02%
EPS Next 3Y10.69%
79.43
+0.37 (+0.47%)
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 Change0.22%
Ins Owners13.08%
Ins Owner Change-0.06%
Market Cap27.12B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts66.96
Price Target95.91 (20.75%)
Short Float %3.94%
Short Ratio4.15
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-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)-0.82%
PT rev (3m)-14.46%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 16.78 | ||
| P/S | 4.95 | ||
| P/FCF | 20.88 | ||
| P/OCF | 19.84 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.76 |
EPS(TTM)4.23
EY5.33%
EPS(NY)4.73
Fwd EY5.96%
FCF(TTM)3.8
FCFY4.79%
OCF(TTM)4
OCFY5.04%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)1.62
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
WACC8.2%
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)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 Year25.28%
Revenue Next 2Y24.34%
Revenue Next 3Y18.19%
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 18.78 and the Price/Book (PB) ratio is 2.19.
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%.