BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - NYSE:BRO - US1152361010 - Common Stock
80.7 USD
+0.64 (+0.8%)
79.4576 USD
-1.24 (-1.54%)
Overall BRO gets a fundamental rating of 5 out of 10. We evaluated BRO against 146 industry peers in the Insurance industry. While BRO has a great profitability rating, there are some minor concerns on its financial health. BRO is quite expensive at the moment. 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.
Each year in the past 5 years BRO has been profitable.
In the past 5 years BRO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.36%, BRO is in the better half of the industry, outperforming 68.49% of the companies in the same industry.
BRO's Return On Equity of 7.97% is on the low side compared to the rest of the industry. BRO is outperformed by 65.07% 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.
Measured over the past 3 years, the Average Return On Invested Capital for BRO is above the industry average of 4.51%.
| 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
Looking at the Profit Margin, with a value of 18.02%, BRO belongs to the top of the industry, outperforming 85.62% of the companies in the same industry.
In the last couple of years the Profit Margin of BRO has grown nicely.
Looking at the Operating Margin, with a value of 29.15%, BRO belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
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.
The number of shares outstanding for BRO has been increased compared to 5 years ago.
BRO has a better debt/assets ratio than last year.
2.2 Solvency
BRO has an Altman-Z score of 1.67. This is a bad value and indicates that BRO is not financially healthy and even has some risk of bankruptcy.
BRO's Altman-Z score of 1.67 is amongst the best of the industry. BRO outperforms 86.99% 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.
Looking at the Debt to FCF ratio, with a value of 5.95, BRO is doing worse than 64.38% of the companies in the same industry.
BRO has a Debt/Equity ratio of 0.62. This is a neutral value indicating BRO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, BRO is not doing good in the industry: 79.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.67
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
The Current ratio of BRO (1.18) is better than 82.19% 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 Quick ratio of 1.18. This is amongst the best in the industry. BRO outperforms 82.19% of its industry peers.
| 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.
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.
Looking at the last year, BRO shows a quite strong growth in Revenue. The Revenue has grown by 17.85% in the last year.
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 11.14% on average over the next years. This is quite good.
BRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BRO is valuated rather expensively with a Price/Earnings ratio of 19.08.
Compared to the rest of the industry, the Price/Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 68.49% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BRO to the average of the S&P500 Index (25.89), we can say BRO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.91, the valuation of BRO can be described as correct.
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 65.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, BRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than the industry average as 64.38% of the companies are valued more cheaply.
BRO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRO is more expensive than 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.49 | ||
| EV/EBITDA | 17.45 |
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)1.69
PEG (5Y)0.85
EPS Next 2Y11.49%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
BRO has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 3.55, BRO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, BRO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of BRO is nicely growing with an annual growth rate of 10.65%!
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
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 2Y11.49%
EPS Next 3Y11.15%
80.7
+0.64 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.94%
Inst Owner Change0.71%
Ins Owners13.55%
Ins Owner Change0.1%
Market Cap26.62B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts71
Price Target110.88 (37.4%)
Short Float %3.16%
Short Ratio3.5
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-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)-2.3%
EPS NQ rev (1m)-2.72%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)5.8%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)5.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 16.91 | ||
| P/S | 4.86 | ||
| P/FCF | 20.49 | ||
| P/OCF | 19.47 | ||
| P/B | 2.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.45 |
EPS(TTM)4.23
EY5.24%
EPS(NY)4.77
Fwd EY5.91%
FCF(TTM)3.94
FCFY4.88%
OCF(TTM)4.14
OCFY5.14%
SpS16.61
BVpS37.55
TBVpS-22.61
PEG (NY)1.69
PEG (5Y)0.85
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 | 1.67 |
F-Score4
WACC8.16%
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 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 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 19.08 and the Price/Book (PB) ratio is 2.15.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.