BROWN & BROWN INC (1BRO.MI) Stock Fundamental Analysis
BIT:1BRO - Euronext Milan - US1152361010 - Common Stock - Currency: EUR
Taking everything into account, 1BRO scores 6 out of 10 in our fundamental rating. 1BRO was compared to 39 industry peers in the Insurance industry. While 1BRO has a great profitability rating, there are some minor concerns on its financial health. 1BRO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1BRO was profitable.
1BRO had a positive operating cash flow in the past year.
1BRO had positive earnings in each of the past 5 years.
In the past 5 years 1BRO always reported a positive cash flow from operatings.
1.2 Ratios
1BRO has a better Return On Assets (6.08%) than 97.37% of its industry peers.
With a decent Return On Equity value of 14.94%, 1BRO is doing good in the industry, outperforming 60.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.85%, 1BRO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1BRO is significantly above the industry average of 2.30%.
The 3 year average ROIC (9.07%) for 1BRO is below the current ROIC(9.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.94% | ||
| ROIC | 9.85% |
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
With an excellent Profit Margin value of 20.58%, 1BRO belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
In the last couple of years the Profit Margin of 1BRO has grown nicely.
The Operating Margin of 1BRO (30.80%) is better than 94.74% of its industry peers.
In the last couple of years the Operating Margin of 1BRO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.8% | ||
| PM (TTM) | 20.58% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1BRO is creating some value.
Compared to 1 year ago, 1BRO has more shares outstanding
Compared to 5 years ago, 1BRO has more shares outstanding
1BRO has a better debt/assets ratio than last year.
2.2 Solvency
1BRO has an Altman-Z score of 3.01. This indicates that 1BRO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1BRO (3.01) is better than 100.00% of its industry peers.
1BRO has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as 1BRO would need 2.95 years to pay back of all of its debts.
1BRO's Debt to FCF ratio of 2.95 is in line compared to the rest of the industry. 1BRO outperforms 57.89% of its industry peers.
1BRO has a Debt/Equity ratio of 0.55. This is a neutral value indicating 1BRO is somewhat dependend on debt financing.
The Debt to Equity ratio of 1BRO (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.06
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.20 indicates that 1BRO should not have too much problems paying its short term obligations.
1BRO's Current ratio of 1.20 is amongst the best of the industry. 1BRO outperforms 94.74% of its industry peers.
1BRO has a Quick Ratio of 1.20. This is a normal value and indicates that 1BRO is financially healthy and should not expect problems in meeting its short term obligations.
1BRO has a Quick ratio of 1.20. This is amongst the best in the industry. 1BRO outperforms 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
1BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
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 12.54% in the past year. This is quite good.
The Revenue has been growing by 14.97% on average over the past years. This is quite good.
EPS 1Y (TTM)28.3%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%13.16%
Revenue 1Y (TTM)12.54%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%11.61%
3.2 Future
Based on estimates for the next years, 1BRO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.91% on average per year.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y9.78%
EPS Next 2Y9%
EPS Next 3Y8.91%
EPS Next 5YN/A
Revenue Next Year9.6%
Revenue Next 2Y8.94%
Revenue Next 3Y8.92%
Revenue Next 5Y7.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 26.10, which means the current valuation is very expensive for 1BRO.
1BRO's Price/Earnings ratio is rather expensive when compared to the industry. 1BRO is more expensive than 81.58% of the companies in the same industry.
1BRO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.35.
1BRO is valuated rather expensively with a Price/Forward Earnings ratio of 22.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1BRO indicates a rather expensive valuation: 1BRO more expensive than 86.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, 1BRO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 22.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1BRO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1BRO is valued a bit more expensive than the industry average as 71.05% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.2 | ||
| EV/EBITDA | 18.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1BRO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1BRO may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)1.17
EPS Next 2Y9%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, 1BRO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.49, 1BRO's dividend is way lower than its industry peers. On top of this 92.11% of the companies listed in the same industry pay a better dividend than 1BRO!
With a Dividend Yield of 0.55, 1BRO pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of 1BRO grows each year by 10.65%, which is quite nice.
Dividend Growth(5Y)10.65%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1BRO pays out 15.60% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1BRO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.6%
EPS Next 2Y9%
EPS Next 3Y8.91%
BIT:1BRO (6/11/2025, 7:00:00 PM)
90.82
+90.82 (+Infinity%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners79.64%
Inst Owner ChangeN/A
Ins Owners15.6%
Ins Owner ChangeN/A
Market Cap26.03B
Analysts70
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.47
Dividend Growth(5Y)10.65%
DP15.6%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.47%
Min EPS beat(2)-2.08%
Max EPS beat(2)11.02%
EPS beat(4)3
Avg EPS beat(4)4.17%
Min EPS beat(4)-2.08%
Max EPS beat(4)11.02%
EPS beat(8)7
Avg EPS beat(8)7.38%
EPS beat(12)10
Avg EPS beat(12)4.5%
EPS beat(16)14
Avg EPS beat(16)5.81%
Revenue beat(2)1
Avg Revenue beat(2)1.76%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)4.5%
Revenue beat(4)3
Avg Revenue beat(4)1.55%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)4.5%
Revenue beat(8)7
Avg Revenue beat(8)2.23%
Revenue beat(12)9
Avg Revenue beat(12)1.8%
Revenue beat(16)13
Avg Revenue beat(16)1.77%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 22.85 | ||
| P/S | 6.03 | ||
| P/FCF | 23.2 | ||
| P/OCF | 21.74 | ||
| P/B | 4.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.79 |
EPS(TTM)3.48
EY3.83%
EPS(NY)3.97
Fwd EY4.38%
FCF(TTM)3.92
FCFY4.31%
OCF(TTM)4.18
OCFY4.6%
SpS15.05
BVpS20.73
TBVpS-9.46
PEG (NY)2.67
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.94% | ||
| ROCE | 12.89% | ||
| ROIC | 9.85% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 94.83% | ||
| OM | 30.8% | ||
| PM (TTM) | 20.58% | ||
| GM | N/A | ||
| FCFM | 26.01% |
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%
ROICexcg growth 3Y-5.47%
ROICexcg 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 37.07% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.2% | ||
| Profit Quality | 126.4% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.01 |
F-Score4
WACC9.26%
ROIC/WACC1.06
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)28.3%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%13.16%
EPS Next Y9.78%
EPS Next 2Y9%
EPS Next 3Y8.91%
EPS Next 5YN/A
Revenue 1Y (TTM)12.54%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%11.61%
Revenue Next Year9.6%
Revenue Next 2Y8.94%
Revenue Next 3Y8.92%
Revenue Next 5Y7.67%
EBIT growth 1Y17.89%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year20.63%
EBIT Next 3Y11.94%
EBIT Next 5Y10.16%
FCF growth 1Y64.45%
FCF growth 3Y12.65%
FCF growth 5Y12.53%
OCF growth 1Y64.04%
OCF growth 3Y13.23%
OCF growth 5Y11.6%