BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRO - US1152361010 - Common Stock
81.07 USD
+0.45 (+0.56%)
81.9 USD
+0.83 (+1.02%)
BRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 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.
Each year in the past 5 years BRO had a positive operating cash flow.
1.2 Ratios
BRO's Return On Assets of 3.36% is fine compared to the rest of the industry. BRO outperforms 68.03% of its industry peers.
BRO has a Return On Equity of 7.97%. This is in the lower half of the industry: BRO underperforms 67.35% of its industry peers.
BRO's Return On Invested Capital of 5.43% is amongst the best of the industry. BRO outperforms 80.95% of its industry peers.
BRO had an Average Return On Invested Capital over the past 3 years of 9.07%. This is significantly below the industry average of 14.89%.
| 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's Profit Margin of 18.02% is amongst the best of the industry. BRO outperforms 86.39% of its industry peers.
BRO's Profit Margin has improved in the last couple of years.
BRO's Operating Margin of 29.15% is amongst the best of the industry. BRO outperforms 91.16% of its industry peers.
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
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
Compared to 1 year ago, BRO has an improved debt to assets ratio.
2.2 Solvency
BRO has an Altman-Z score of 1.72. 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 1.72, BRO belongs to the top of the industry, outperforming 88.44% of the companies in the same industry.
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.
BRO has a Debt to FCF ratio of 5.95. This is in the lower half of the industry: BRO underperforms 64.63% of its industry peers.
BRO has a Debt/Equity ratio of 0.62. This is a neutral value indicating BRO is somewhat dependend on debt financing.
BRO has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: BRO underperforms 78.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.72 |
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 Current ratio of 1.18. This is amongst the best in the industry. BRO outperforms 82.99% 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 82.99% 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.
Measured over the past years, BRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.36% on average per year.
BRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.85%.
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
The Earnings Per Share is expected to grow by 10.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y12.06%
EPS Next 2Y11.11%
EPS Next 3Y10.81%
EPS Next 5YN/A
Revenue Next Year25.18%
Revenue Next 2Y24.1%
Revenue Next 3Y17.99%
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
BRO is valuated rather expensively with a Price/Earnings ratio of 19.17.
Based on the Price/Earnings ratio, BRO is valued a bit more expensive than the industry average as 65.31% of the companies are valued more cheaply.
BRO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.26, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.10 indicates a rather expensive valuation of BRO.
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 64.63% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BRO to the average of the S&P500 Index (23.68), we can say BRO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than the industry average as 65.99% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than the industry average as 63.95% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.31 | ||
| EV/EBITDA | 18.12 |
4.3 Compensation for Growth
The 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)1.59
PEG (5Y)0.86
EPS Next 2Y11.11%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
BRO has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 2.64, BRO is paying slightly less dividend.
With a Dividend Yield of 0.83, BRO pays less dividend than the S&P500 average, which is at 1.87.
| 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 paid a dividend for at least 10 years, which is 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.
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 2Y11.11%
EPS Next 3Y10.81%
81.07
+0.45 (+0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners80.64%
Inst Owner Change-0.53%
Ins Owners13.09%
Ins Owner Change0.1%
Market Cap27.68B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts68.57
Price Target96.7 (19.28%)
Short Float %3.63%
Short Ratio3.79
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-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)-12.79%
PT rev (3m)-13.76%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-3.14%
EPS NY rev (1m)0.73%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 17.1 | ||
| P/S | 5.05 | ||
| P/FCF | 21.31 | ||
| P/OCF | 20.25 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.12 |
EPS(TTM)4.23
EY5.22%
EPS(NY)4.74
Fwd EY5.85%
FCF(TTM)3.8
FCFY4.69%
OCF(TTM)4
OCFY4.94%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)1.59
PEG (5Y)0.86
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 | 1.72 |
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 Y12.06%
EPS Next 2Y11.11%
EPS Next 3Y10.81%
EPS Next 5YN/A
Revenue 1Y (TTM)17.85%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%35.41%
Revenue Next Year25.18%
Revenue Next 2Y24.1%
Revenue Next 3Y17.99%
Revenue Next 5Y7.67%
EBIT growth 1Y14.4%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year37.59%
EBIT Next 3Y22.4%
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 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 are the PE and PB ratios of BROWN & BROWN INC (BRO) stock?
The Price/Earnings (PE) ratio for BROWN & BROWN INC (BRO) is 19.17 and the Price/Book (PB) ratio is 2.23.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.