BROWN & BROWN INC (BRO) Fundamental Analysis & Valuation

NYSE:BRO • US1152361010

Current stock price

65.9 USD
-1.65 (-2.44%)
At close:
65.9 USD
0 (0%)
After Hours:

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.
  • BRO had a positive operating cash flow in the past year.
  • Each year in the past 5 years BRO has 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 has a Return On Assets of 3.47%. This is in the better half of the industry: BRO outperforms 64.63% of its industry peers.
  • BRO has a worse Return On Equity (8.30%) than 63.95% of its industry peers.
  • The Return On Invested Capital of BRO (6.04%) is better than 77.55% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for BRO is in line with the industry average of 9.51%.
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 better Profit Margin (17.64%) than 78.91% of its industry peers.
  • BRO's Profit Margin has been stable in the last couple of years.
  • BRO's Operating Margin of 28.72% is amongst the best of the industry. BRO outperforms 89.80% of its industry peers.
  • 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.
  • BRO has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, BRO has more shares outstanding
  • BRO has a worse debt/assets ratio than last year.
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

  • Based on the Altman-Z score of 1.51, we must say that BRO is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of BRO (1.51) is better than 85.03% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 5.51, BRO is doing worse than 67.35% of the companies in the same industry.
  • BRO has a Debt/Equity ratio of 0.55. This is a neutral value indicating BRO is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.55, BRO is doing worse than 76.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 5.51
Altman-Z 1.51
ROIC/WACC0.76
WACC7.91%
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

  • A Current Ratio of 1.04 indicates that BRO should not have too much problems paying 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.
  • BRO has a Quick ratio of 1.04. This is amongst the best in the industry. BRO outperforms 80.27% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. BRO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.98% over the past year.
  • BRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.54% yearly.
  • BRO shows a strong growth in Revenue. In the last year, 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)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
Revenue 1Y (TTM)22.83%
Revenue growth 3Y18.21%
Revenue growth 5Y17.7%
Sales Q2Q%35.73%

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 8.05% on average per year.
  • Based on estimates for the next years, BRO will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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 15.33 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 69.39% 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 27.42.
  • BRO is valuated correctly with a Price/Forward Earnings ratio of 14.42.
  • Based on the Price/Forward 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/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.33
Fwd PE 14.42
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 60.54% of the companies listed in the same industry.
  • 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 64.63% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.19
EV/EBITDA 14.29
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 an expensive valuation of the company.
  • BRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)0.75
EPS Next 2Y8.14%
EPS Next 3Y8.05%

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5

5. BRO Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.96%, BRO is not a good candidate for dividend investing.
  • BRO's Dividend Yield is slightly below the industry average, which is at 2.37.
  • Compared to an average S&P500 Dividend Yield of 1.81, BRO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.96%

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 their dividend for at least 10 years, which is a reliable track record.
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.
  • BRO's earnings are growing slower than its dividend. 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 (4/24/2026, 8:24:11 PM)

After market: 65.9 0 (0%)

65.9

-1.65 (-2.44%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-26
Earnings (Next)04-27
Inst Owners83.18%
Inst Owner Change-0.14%
Ins Owners13.14%
Ins Owner Change1.74%
Market Cap22.38B
Revenue(TTM)5.90B
Net Income(TTM)1.04B
Analysts65.83
Price Target82.72 (25.52%)
Short Float %6.32%
Short Ratio5.25
Dividend
Industry RankSector Rank
Dividend Yield 0.96%
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)-0.56%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.15%
Valuation
Industry RankSector Rank
PE 15.33
Fwd PE 14.42
P/S 3.79
P/FCF 16.19
P/OCF 15.43
P/B 1.78
P/tB N/A
EV/EBITDA 14.29
EPS(TTM)4.3
EY6.53%
EPS(NY)4.57
Fwd EY6.94%
FCF(TTM)4.07
FCFY6.18%
OCF(TTM)4.27
OCFY6.48%
SpS17.38
BVpS36.95
TBVpS-21.93
PEG (NY)2.43
PEG (5Y)0.75
Graham Number59.7912 (-9.27%)
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 1.51
F-Score3
WACC7.91%
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)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
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%35.73%
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%.