BROWN & BROWN INC (BRO)
US1152361010 - Common Stock
Taking everything into account, BRO scores 6 out of 10 in our fundamental rating. BRO was compared to 140 industry peers in the Insurance industry. While BRO has a great profitability rating, 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.
BRO had a positive operating cash flow in the past year.
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 5.93%. This is amongst the best in the industry. BRO outperforms 86.33% of its industry peers.
BRO has a Return On Equity of 16.07%. This is in the better half of the industry: BRO outperforms 69.06% of its industry peers.
BRO has a better Return On Invested Capital (9.69%) than 94.96% of its industry peers.
BRO had an Average Return On Invested Capital over the past 3 years of 8.82%. This is above the industry average of 4.27%.
The last Return On Invested Capital (9.69%) for BRO is above the 3 year average (8.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 16.07% | ||
| ROIC | 9.69% |
ROA(3y)5.45%
ROA(5y)5.32%
ROE(3y)14.45%
ROE(5y)13.45%
ROIC(3y)8.82%
ROIC(5y)8.43%
1.3 Margins
The Profit Margin of BRO (22.35%) is better than 89.21% of its industry peers.
BRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.03%, BRO belongs to the top of the industry, outperforming 92.09% of the companies in the same industry.
BRO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.03% | ||
| PM (TTM) | 22.35% | ||
| GM | N/A |
OM growth 3Y3.31%
OM growth 5Y2.66%
PM growth 3Y4.19%
PM growth 5Y3.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRO is still creating some value.
Compared to 1 year ago, BRO has more shares outstanding
The number of shares outstanding for BRO has been increased compared to 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 2.77. This is not the best score and indicates that BRO is in the grey zone with still only limited risk for bankruptcy at the moment.
BRO has a better Altman-Z score (2.77) than 95.68% of its industry peers.
The Debt to FCF ratio of BRO is 3.50, which is a good value as it means it would take BRO, 3.50 years of fcf income to pay off all of its debts.
BRO has a Debt to FCF ratio of 3.50. This is in the lower half of the industry: BRO underperforms 60.43% of its industry peers.
BRO has a Debt/Equity ratio of 0.52. This is a neutral value indicating BRO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, BRO is doing worse than 65.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.14
WACC8.46%
2.3 Liquidity
BRO has a Current Ratio of 1.15. 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 (1.15) than 82.73% of its industry peers.
A Quick Ratio of 1.15 indicates that BRO should not have too much problems paying its short term obligations.
BRO has a better Quick ratio (1.15) than 82.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.40%, which is quite impressive.
The Earnings Per Share has been growing by 17.97% on average over the past years. This is quite good.
BRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
BRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.15% yearly.
EPS 1Y (TTM)30.4%
EPS 3Y18.47%
EPS 5Y17.97%
EPS Q2Q%28.17%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y17.66%
Revenue growth 5Y16.15%
Sales Q2Q%11.08%
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 16.84% yearly.
BRO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.76% yearly.
EPS Next Y34.97%
EPS Next 2Y21.16%
EPS Next 3Y16.84%
EPS Next 5YN/A
Revenue Next Year12.77%
Revenue Next 2Y10.8%
Revenue Next 3Y9.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 31.11 indicates a quite expensive valuation of BRO.
Compared to the rest of the industry, the Price/Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 74.10% of the companies listed in the same industry.
BRO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
The Price/Forward Earnings ratio is 26.85, which means the current valuation is very expensive for 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 73.38% 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 (23.82), we can say BRO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 26.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRO.
Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than 72.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.87 | ||
| EV/EBITDA | 21.07 |
4.3 Compensation for Growth
BRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BRO has an outstanding profitability rating, which may justify a higher PE ratio.
BRO's earnings are expected to grow with 16.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)1.73
EPS Next 2Y21.16%
EPS Next 3Y16.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, BRO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.25, BRO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.23, BRO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of BRO is nicely growing with an annual growth rate of 9.32%!
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)9.32%
Div Incr Years30
Div Non Decr Years33
5.3 Sustainability
14.26% of the earnings are spent on dividend by BRO. This is a low number and sustainable payout ratio.
BRO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.26%
EPS Next 2Y21.16%
EPS Next 3Y16.84%
BROWN & BROWN INC
NYSE:BRO (11/21/2024, 8:16:01 PM)
After market: 110.75 0 (0%)110.75
+1.14 (+1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 26.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.89
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.93% | ||
| ROE | 16.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.03% | ||
| PM (TTM) | 22.35% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.4%
EPS 3Y18.47%
EPS 5Y
EPS Q2Q%
EPS Next Y34.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.48%
Revenue growth 3Y17.66%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y