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Exploring NYSE:BRO's quality characteristics.

By Mill Chart

Last update: May 14, 2024

In this article we will dive into BROWN & BROWN INC (NYSE:BRO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BROWN & BROWN INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

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 16.15% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • BROWN & BROWN INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 277.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • BROWN & BROWN INC maintains a healthy Debt/Free Cash Flow Ratio of 4.35, 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.
  • The Profit Quality (5-year) of BROWN & BROWN INC stands at 133.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • BROWN & BROWN INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 19.24%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • The EBIT 5-year growth of BROWN & BROWN INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NYSE:BRO?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall BRO gets a fundamental rating of 6 out of 10. We evaluated BRO against 140 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.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.

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