Exploring NYSE:BRO's quality characteristics.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BROWN & BROWN INC (NYSE:BRO) is suited for quality investing. Investors should of couse do their own research, but we spotted BROWN & BROWN INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of BROWN & BROWN INC

• BROWN & BROWN INC has shown strong performance in revenue growth over the past 5 years, with a 13.69% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 99.6%, BROWN & BROWN INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• BROWN & BROWN INC maintains a healthy Debt/Free Cash Flow Ratio of 4.41, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 142.0%, BROWN & BROWN INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• With a robust 5-year EBIT growth of 14.49%, BROWN & BROWN INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• BROWN & BROWN INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall BRO gets a fundamental rating of 5 out of 10. We evaluated BRO against 142 industry peers in the Insurance industry. BRO scores excellent on profitability, but there are some minor concerns on its financial health. BRO is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of BRO for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.