BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRO - US1152361010 - Common Stock
80.43 USD
-0.02 (-0.02%)
80.54 USD
+0.11 (+0.14%)
Overall BRO gets a fundamental rating of 5 out of 10. We evaluated BRO against 148 industry peers in the Insurance industry. While BRO belongs to the best of the industry regarding profitability, 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.
In the past year BRO had a positive cash flow from operations.
In the past 5 years BRO has always been profitable.
In the past 5 years BRO always reported a positive cash flow from operatings.
1.2 Ratios
BRO has a better Return On Assets (3.36%) than 66.89% of its industry peers.
The Return On Equity of BRO (7.97%) is worse than 68.92% of its industry peers.
The Return On Invested Capital of BRO (5.43%) is better than 83.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRO is above the industry average of 4.57%.
| 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's Profit Margin of 18.02% is amongst the best of the industry. BRO outperforms 85.14% of its industry peers.
In the last couple of years the Profit Margin of BRO has grown nicely.
The Operating Margin of BRO (29.15%) is better than 92.57% of its industry peers.
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.
Compared to 1 year ago, BRO has more shares outstanding
BRO has more shares outstanding than it did 5 years ago.
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 87.16% 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.
BRO's Debt to FCF ratio of 5.95 is on the low side compared to the rest of the industry. BRO is outperformed by 64.86% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that BRO is somewhat dependend on debt financing.
BRO has a worse Debt to Equity ratio (0.62) than 79.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.67
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
BRO's Current ratio of 1.18 is amongst the best of the industry. BRO outperforms 82.43% 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.
The Quick ratio of BRO (1.18) is better than 82.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.82%, which is quite good.
BRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.36% yearly.
BRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.85%.
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
BRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.14% yearly.
The Revenue is expected to grow by 7.67% on average over the next years.
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
A Price/Earnings ratio of 19.01 indicates a rather expensive valuation of BRO.
BRO's Price/Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 68.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, BRO is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.85 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 66.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. BRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than 64.86% of the companies in the same industry.
BRO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRO is more expensive than 63.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.14 | ||
| EV/EBITDA | 18.01 |
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)1.69
PEG (5Y)0.85
EPS Next 2Y11.49%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, BRO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.32, BRO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.32, 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 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
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%
80.43
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.94%
Inst Owner Change-0.56%
Ins Owners13.55%
Ins Owner Change0.1%
Market Cap27.46B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts71
Price Target98.96 (23.04%)
Short Float %3.44%
Short Ratio3.3
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)-10.76%
PT rev (3m)-11.75%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.85 | ||
| P/S | 5.01 | ||
| P/FCF | 21.14 | ||
| P/OCF | 20.09 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.01 |
EPS(TTM)4.23
EY5.26%
EPS(NY)4.77
Fwd EY5.93%
FCF(TTM)3.8
FCFY4.73%
OCF(TTM)4
OCFY4.98%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)1.69
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
WACC8.07%
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 19.01 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.