BROWN & BROWN INC (1BRO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BRO - US1152361010 - Common Stock
90.82 EUR
+90.82 (+Infinity%)
We assign a fundamental rating of 6 out of 10 to 1BRO. 1BRO was compared to 48 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
- 1BRO had positive earnings in the past year.
- In the past year 1BRO had a positive cash flow from operations.
- Each year in the past 5 years 1BRO has been profitable.
- 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 97.50% of its industry peers.
- Looking at the Return On Equity, with a value of 14.94%, 1BRO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- 1BRO has a Return On Invested Capital of 9.85%. This is amongst the best in the industry. 1BRO outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1BRO is significantly above the industry average of 2.74%.
- The last Return On Invested Capital (9.85%) for 1BRO is above the 3 year average (9.07%), which is a sign of increasing profitability.
| 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
- 1BRO's Profit Margin of 20.58% is amongst the best of the industry. 1BRO outperforms 92.50% of its industry peers.
- In the last couple of years the Profit Margin of 1BRO has grown nicely.
- With an excellent Operating Margin value of 30.80%, 1BRO belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- 1BRO's Operating Margin has improved in the last couple of years.
| 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
- 1BRO 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, 1BRO has more shares outstanding
- Compared to 5 years ago, 1BRO has more shares outstanding
- Compared to 1 year ago, 1BRO has an improved debt to assets ratio.
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.
- The Debt to FCF ratio of 1BRO is 2.95, which is a good value as it means it would take 1BRO, 2.95 years of fcf income to pay off all of its debts.
- 1BRO has a Debt to FCF ratio of 2.95. This is comparable to the rest of the industry: 1BRO outperforms 55.00% 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
- 1BRO has a Current 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 Current ratio of 1.20. This is amongst the best in the industry. 1BRO outperforms 95.00% of its industry peers.
- A Quick Ratio of 1.20 indicates that 1BRO should not have too much problems paying its short term obligations.
- 1BRO's Quick ratio of 1.20 is amongst the best of the industry. 1BRO outperforms 95.00% 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.
- Measured over the past years, 1BRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.36% on average per year.
- 1BRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.54%.
- 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
- The Earnings Per Share is expected to grow by 9.49% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y10.18%
EPS Next 2Y10.14%
EPS Next 3Y9.49%
EPS Next 5YN/A
Revenue Next Year10.74%
Revenue Next 2Y10.45%
Revenue Next 3Y9.83%
Revenue Next 5Y7.67%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.17, the valuation of 1BRO can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of 1BRO indicates a rather expensive valuation: 1BRO more expensive than 82.50% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, 1BRO is valued at the same level.
- The Price/Forward Earnings ratio is 22.45, which indicates a rather expensive current valuation of 1BRO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1BRO indicates a rather expensive valuation: 1BRO more expensive than 87.50% of the companies listed in the same industry.
- 1BRO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 22.45 |
4.2 Price Multiples
- 1BRO's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, 1BRO is valued a bit more expensive than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.27 | ||
| EV/EBITDA | 18.84 |
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)2.57
PEG (5Y)1.17
EPS Next 2Y10.14%
EPS Next 3Y9.49%
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 4.17, 1BRO's dividend is way lower than its industry peers. On top of this 92.50% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
- The dividend of 1BRO is nicely growing with an annual growth rate of 10.65%!
Dividend Growth(5Y)10.65%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 15.60% of the earnings are spent on dividend by 1BRO. This is a low number and 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 2Y10.14%
EPS Next 3Y9.49%
BROWN & BROWN INC / 1BRO.MI FAQ
Can you provide the ChartMill fundamental rating for BROWN & BROWN INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1BRO.MI.
Can you provide the valuation status for BROWN & BROWN INC?
ChartMill assigns a valuation rating of 2 / 10 to BROWN & BROWN INC (1BRO.MI). This can be considered as Overvalued.
Can you provide the profitability details for BROWN & BROWN INC?
BROWN & BROWN INC (1BRO.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of BROWN & BROWN INC (1BRO.MI) stock?
The Price/Earnings (PE) ratio for BROWN & BROWN INC (1BRO.MI) is 26.17 and the Price/Book (PB) ratio is 4.39.
Can you provide the expected EPS growth for 1BRO stock?
The Earnings per Share (EPS) of BROWN & BROWN INC (1BRO.MI) is expected to grow by 10.18% in the next year.