BROWN & BROWN INC (BRO) Fundamental Analysis & Valuation

NYSE:BRO • US1152361010

Current stock price

62.18 USD
-3.94 (-5.96%)
Last:

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

  • BRO had positive earnings in the past year.
  • 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.
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 63.95% of its industry peers.
  • BRO has a Return On Equity of 8.30%. This is in the lower half of the industry: BRO underperforms 63.95% of its industry peers.
  • BRO has a better Return On Invested Capital (6.04%) than 77.55% of its industry peers.
  • BRO had an Average Return On Invested Capital over the past 3 years of 8.52%. This is in line with the industry average of 9.60%.
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's Profit Margin of 17.64% is fine compared to the rest of the industry. BRO outperforms 78.91% of its industry peers.
  • In the last couple of years the Profit Margin of BRO has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 28.72%, BRO belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
  • 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

  • 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.
  • 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 1.49, 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 1.49, BRO belongs to the top of the industry, outperforming 85.03% of the companies in the same industry.
  • BRO has a debt to FCF ratio of 5.51. This is a neutral value as BRO would need 5.51 years to pay back of all of its debts.
  • BRO has a Debt to FCF ratio of 5.51. This is in the lower half of the industry: BRO underperforms 67.35% of its industry peers.
  • A Debt/Equity ratio of 0.55 indicates that BRO is somewhat dependend on debt financing.
  • BRO has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: BRO underperforms 76.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 5.51
Altman-Z 1.49
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

  • BRO has a Current 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 better Current ratio (1.04) than 80.27% of its industry peers.
  • A Quick Ratio of 1.04 indicates that BRO should not have too much problems paying its short term obligations.
  • BRO's Quick ratio of 1.04 is amongst the best of 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

  • BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.28%, 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 20.54% on average per year.
  • 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)10.28%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%7.75%
Revenue 1Y (TTM)22.83%
Revenue growth 3Y18.21%
Revenue growth 5Y17.7%
Sales Q2Q%35.4%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.05% on average over the next years. This is quite good.
  • 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.
  • 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.
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

  • With a Price/Earnings ratio of 14.13, BRO is valued correctly.
  • BRO's Price/Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 68.71% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.15. BRO is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of BRO.
  • 61.90% of the companies in the same industry are cheaper than BRO, based on the Price/Forward Earnings ratio.
  • BRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.12.
Industry RankSector Rank
PE 14.13
Fwd PE 12.36
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

  • Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than 61.90% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 15.28
EV/EBITDA 14.06
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)2.24
PEG (5Y)0.69
EPS Next 2Y8.14%
EPS Next 3Y8.05%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. BRO Dividend Analysis

5.1 Amount

  • BRO has a yearly dividend return of 1.00%, which is pretty low.
  • BRO's Dividend Yield is slightly below the industry average, which is at 2.37.
  • With a Dividend Yield of 1.00, BRO pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 (4/28/2026, 2:33:08 PM)

62.18

-3.94 (-5.96%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-27
Earnings (Next)N/A
Inst Owners83.18%
Inst Owner Change0.07%
Ins Owners13.14%
Ins Owner Change1.74%
Market Cap21.11B
Revenue(TTM)5.90B
Net Income(TTM)1.04B
Analysts65.83
Price Target82.11 (32.05%)
Short Float %6.25%
Short Ratio5.9
Dividend
Industry RankSector Rank
Dividend Yield 1%
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)-0.41%
EPS NQ rev (3m)-4.06%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.96%
Valuation
Industry RankSector Rank
PE 14.13
Fwd PE 12.36
P/S 3.58
P/FCF 15.28
P/OCF 14.56
P/B 1.68
P/tB N/A
EV/EBITDA 14.06
EPS(TTM)4.4
EY7.08%
EPS(NY)5.03
Fwd EY8.09%
FCF(TTM)4.07
FCFY6.55%
OCF(TTM)4.27
OCFY6.87%
SpS17.38
BVpS36.95
TBVpS-21.93
PEG (NY)2.24
PEG (5Y)0.69
Graham Number60.4824 (-2.73%)
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 1.49
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)10.28%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%7.75%
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%35.4%
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%.