BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRO - US1152361010 - Common Stock
80.37 USD
+0.19 (+0.24%)
80.23 USD
-0.14 (-0.17%)
Overall BRO gets a fundamental rating of 5 out of 10. We evaluated BRO against 148 industry peers in the Insurance industry. BRO has only an average score on both its financial health and profitability. 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.
BRO had a positive operating cash flow in the past year.
BRO had positive earnings in each of the past 5 years.
In the past 5 years BRO always reported a positive cash flow from operatings.
1.2 Ratios
BRO has a Return On Assets of 3.36%. This is in the better half of the industry: BRO outperforms 68.24% of its industry peers.
With a Return On Equity value of 7.97%, BRO is not doing good in the industry: 66.89% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 5.43%, BRO belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BRO is significantly below the industry average of 14.88%.
| 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 has a better Profit Margin (18.02%) than 86.49% of its industry peers.
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 91.22% 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
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
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
Based on the Altman-Z score of 1.71, we must say that BRO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, BRO belongs to the top of the industry, outperforming 87.84% 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.
Looking at the Debt to FCF ratio, with a value of 5.95, BRO is doing worse than 64.86% 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.
The Debt to Equity ratio of BRO (0.62) is worse than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.66
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.18, BRO belongs to the best of the industry, outperforming 82.43% of the companies in the same industry.
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 82.43% 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.
The Earnings Per Share has been growing by 22.36% on average over the past years. This is a very strong growth
The Revenue has grown by 17.85% in the past year. This is quite good.
BRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
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
BRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.81% yearly.
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.
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
With a Price/Earnings ratio of 19.00, BRO is valued on the expensive side.
64.19% of the companies in the same industry are cheaper than BRO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.61. BRO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.95, which indicates a correct valuation of BRO.
BRO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 64.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BRO to the average of the S&P500 Index (24.01), we can say BRO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 16.95 |
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 65.54% 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 63.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | 18 |
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)1.57
PEG (5Y)0.85
EPS Next 2Y11.11%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
BRO has a yearly dividend return of 0.81%, which is pretty low.
BRO's Dividend Yield is slightly below the industry average, which is at 2.30.
With a Dividend Yield of 0.81, BRO pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 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.
The dividend of BRO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.24%
EPS Next 2Y11.11%
EPS Next 3Y10.81%
80.37
+0.19 (+0.24%)
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 Change0.09%
Market Cap27.44B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts68.57
Price Target96.7 (20.32%)
Short Float %3.63%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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%
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 | ||
| Fwd PE | 16.95 | ||
| P/S | 5.01 | ||
| P/FCF | 21.12 | ||
| P/OCF | 20.07 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18 |
EPS(TTM)4.23
EY5.26%
EPS(NY)4.74
Fwd EY5.9%
FCF(TTM)3.8
FCFY4.73%
OCF(TTM)4
OCFY4.98%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)1.57
PEG (5Y)0.85
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 | 1.71 |
F-Score4
WACC8.19%
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 and the Price/Book (PB) ratio is 2.22.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.