BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - NYSE:BRO - US1152361010 - Common Stock
79.74 USD
-0.71 (-0.88%)
79.3496 USD
-0.39 (-0.49%)
Overall BRO gets a fundamental rating of 6 out of 10. We evaluated BRO against 146 industry peers in the Insurance industry. While BRO has a great profitability rating, 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
BRO had positive earnings in the past year.
In the past year BRO had a positive cash flow from operations.
Each year in the past 5 years BRO has been profitable.
BRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRO has a better Return On Assets (3.87%) than 77.55% of its industry peers.
The Return On Equity of BRO (8.56%) is comparable to the rest of the industry.
BRO has a better Return On Invested Capital (5.75%) than 85.03% of its industry peers.
BRO had an Average Return On Invested Capital over the past 3 years of 9.07%. This is above the industry average of 4.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.56% | ||
| ROIC | 5.75% |
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 has a Profit Margin of 19.63%. This is amongst the best in the industry. BRO outperforms 89.80% of its industry peers.
In the last couple of years the Profit Margin of BRO has grown nicely.
Looking at the Operating Margin, with a value of 30.31%, BRO belongs to the top of the industry, outperforming 97.28% of the companies in the same industry.
BRO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.31% | ||
| PM (TTM) | 19.63% | ||
| 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.
BRO has more shares outstanding than it did 1 year ago.
BRO has more shares outstanding than it did 5 years ago.
BRO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.31 indicates that BRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.31, BRO belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
The Debt to FCF ratio of BRO is 5.97, which is a neutral value as it means it would take BRO, 5.97 years of fcf income to pay off all of its debts.
BRO has a worse Debt to FCF ratio (5.97) than 60.54% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that BRO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, BRO is not doing good in the industry: 81.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.97 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.71
WACC8.13%
2.3 Liquidity
A Current Ratio of 2.75 indicates that BRO has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.75, BRO belongs to the best of the industry, outperforming 91.16% of the companies in the same industry.
A Quick Ratio of 2.75 indicates that BRO has no problem at all paying its short term obligations.
BRO has a better Quick ratio (2.75) than 91.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 |
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.
The Revenue has grown by 12.87% in the past year. This is quite good.
Measured over the past years, BRO shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
EPS 1Y (TTM)18.82%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%15.38%
Revenue 1Y (TTM)12.87%
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 11.04% yearly.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y9.93%
EPS Next 2Y11.59%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue Next Year23.88%
Revenue Next 2Y24.12%
Revenue Next 3Y18.43%
Revenue Next 5Y7.67%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BRO is valuated rather expensively with a Price/Earnings ratio of 18.85.
Based on the Price/Earnings ratio, BRO is valued a bit more expensive than 69.39% of the companies in the same industry.
BRO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
Based on the Price/Forward Earnings ratio of 16.68, the valuation of BRO can be described as correct.
Based on the Price/Forward Earnings ratio, BRO is valued a bit more expensive than 65.31% of the companies in the same industry.
BRO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRO.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.81 | ||
| EV/EBITDA | 14.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BRO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BRO may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)0.84
EPS Next 2Y11.59%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
BRO has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 3.27, BRO is paying slightly less dividend.
With a Dividend Yield of 0.82, BRO pays less dividend than the S&P500 average, which is at 2.37.
| 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 16.62% 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.
DP16.62%
EPS Next 2Y11.59%
EPS Next 3Y11.04%
79.74
-0.71 (-0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.94%
Inst Owner Change-1.31%
Ins Owners13.55%
Ins Owner Change0.54%
Market Cap26.30B
Revenue(TTM)4.80B
Net Income(TTM)993.00M
Analysts71
Price Target110.88 (39.05%)
Short Float %3.16%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP16.62%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.47%
Min EPS beat(2)-2.08%
Max EPS beat(2)3.03%
EPS beat(4)3
Avg EPS beat(4)3.72%
Min EPS beat(4)-2.08%
Max EPS beat(4)11.02%
EPS beat(8)7
Avg EPS beat(8)6.11%
EPS beat(12)10
Avg EPS beat(12)4.48%
EPS beat(16)14
Avg EPS beat(16)4.72%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.54%
Revenue beat(4)2
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)4.5%
Revenue beat(8)6
Avg Revenue beat(8)1.66%
Revenue beat(12)8
Avg Revenue beat(12)1.45%
Revenue beat(16)12
Avg Revenue beat(16)1.4%
PT rev (1m)-1.12%
PT rev (3m)-8.91%
EPS NQ rev (1m)1.8%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)7.53%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)5.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.68 | ||
| P/S | 5.2 | ||
| P/FCF | 20.81 | ||
| P/OCF | 19.64 | ||
| P/B | 2.27 | ||
| P/tB | 19.3 | ||
| EV/EBITDA | 14.07 |
EPS(TTM)4.23
EY5.3%
EPS(NY)4.78
Fwd EY6%
FCF(TTM)3.83
FCFY4.81%
OCF(TTM)4.06
OCFY5.09%
SpS15.33
BVpS35.15
TBVpS4.13
PEG (NY)1.9
PEG (5Y)0.84
Graham Number57.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.56% | ||
| ROCE | 7.52% | ||
| ROIC | 5.75% | ||
| ROICexc | 10.2% | ||
| ROICexgc | 93.36% | ||
| OM | 30.31% | ||
| PM (TTM) | 19.63% | ||
| GM | N/A | ||
| FCFM | 24.99% |
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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.97 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 31.12% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.48% | ||
| Profit Quality | 127.29% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z | 2.31 |
F-Score4
WACC8.13%
ROIC/WACC0.71
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 Y9.93%
EPS Next 2Y11.59%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue 1Y (TTM)12.87%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%35.41%
Revenue Next Year23.88%
Revenue Next 2Y24.12%
Revenue Next 3Y18.43%
Revenue Next 5Y7.67%
EBIT growth 1Y13.14%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year35.56%
EBIT Next 3Y22.96%
EBIT Next 5Y10.16%
FCF growth 1Y46.25%
FCF growth 3Y12.65%
FCF growth 5Y12.53%
OCF growth 1Y44.96%
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 18.85 and the Price/Book (PB) ratio is 2.27.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 5 / 10.