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BROWN & BROWN INC (BRO) Stock Fundamental Analysis

NYSE:BRO - New York Stock Exchange, Inc. - US1152361010 - Common Stock - Currency: USD

110.82  +0.39 (+0.35%)

After market: 109 -1.82 (-1.64%)

Fundamental Rating

6

Overall BRO gets a fundamental rating of 6 out of 10. We evaluated BRO against 143 industry peers in the Insurance industry. While BRO has a great profitability rating, there are some minor concerns on its financial health. BRO is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

BRO had positive earnings in the past year.
BRO had a positive operating cash flow in the past year.
Each year in the past 5 years BRO has been profitable.
Each year in the past 5 years BRO had a positive operating cash flow.
BRO Yearly Net Income VS EBIT VS OCF VS FCFBRO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

1.2 Ratios

Looking at the Return On Assets, with a value of 6.08%, BRO belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Equity of BRO (14.94%) is better than 72.03% of its industry peers.
BRO has a Return On Invested Capital of 9.85%. This is amongst the best in the industry. BRO outperforms 94.41% 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 4.27%.
The 3 year average ROIC (9.07%) for BRO is below the current ROIC(9.85%), indicating increased profibility in the last year.
Industry RankSector 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%
BRO Yearly ROA, ROE, ROICBRO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

With an excellent Profit Margin value of 20.58%, BRO belongs to the best of the industry, outperforming 90.21% of the companies in the same industry.
BRO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 30.80%, BRO belongs to the best of the industry, outperforming 93.71% of the companies in the same industry.
In the last couple of years the Operating Margin of BRO has grown nicely.
Industry RankSector 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
BRO Yearly Profit, Operating, Gross MarginsBRO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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6

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.
Compared to 1 year ago, BRO has more shares outstanding
BRO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BRO has been reduced compared to a year ago.
BRO Yearly Shares OutstandingBRO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
BRO Yearly Total Debt VS Total AssetsBRO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

BRO has an Altman-Z score of 3.11. This indicates that BRO is financially healthy and has little risk of bankruptcy at the moment.
BRO has a Altman-Z score of 3.11. This is amongst the best in the industry. BRO outperforms 95.80% of its industry peers.
BRO has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as BRO would need 2.95 years to pay back of all of its debts.
The Debt to FCF ratio of BRO (2.95) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.55 indicates that BRO is somewhat dependend on debt financing.
The Debt to Equity ratio of BRO (0.55) is worse than 70.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.95
Altman-Z 3.11
ROIC/WACC1.14
WACC8.61%
BRO Yearly LT Debt VS Equity VS FCFBRO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

BRO has a Current Ratio of 1.20. This is a normal value and indicates that BRO is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.20, BRO belongs to the best of the industry, outperforming 82.52% of the companies in the same industry.
BRO has a Quick Ratio of 1.20. This is a normal value and indicates that BRO is financially healthy and should not expect problems in meeting its short term obligations.
BRO has a Quick ratio of 1.20. This is amongst the best in the industry. BRO outperforms 82.52% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.2
BRO Yearly Current Assets VS Current LiabilitesBRO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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6

3. Growth

3.1 Past

BRO 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, BRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.36% on average per year.
The Revenue has grown by 12.54% in the past year. This is quite good.
BRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
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, BRO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.91% on average per year.
BRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
EPS Next Y9.78%
EPS Next 2Y9%
EPS Next 3Y8.91%
EPS Next 5YN/A
Revenue Next Year9.43%
Revenue Next 2Y8.56%
Revenue Next 3Y8.3%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BRO Yearly Revenue VS EstimatesBRO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
BRO Yearly EPS VS EstimatesBRO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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1

4. Valuation

4.1 Price/Earnings Ratio

BRO is valuated quite expensively with a Price/Earnings ratio of 27.77.
Compared to the rest of the industry, the Price/Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 74.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, BRO is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.29, the valuation of BRO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 74.83% of the companies listed in the same industry.
BRO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 27.77
Fwd PE 24.29
BRO Price Earnings VS Forward Price EarningsBRO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

62.94% of the companies in the same industry are cheaper than BRO, based on the Enterprise Value to EBITDA ratio.
BRO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRO is more expensive than 70.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.66
EV/EBITDA 19.8
BRO Per share dataBRO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BRO may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.24
EPS Next 2Y9%
EPS Next 3Y8.91%

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5

5. Dividend

5.1 Amount

BRO has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 3.18, BRO is paying slightly less dividend.
With a Dividend Yield of 0.54, BRO pays less dividend than the S&P500 average, which is at 2.36.
Industry RankSector Rank
Dividend Yield 0.54%

5.2 History

On average, the dividend of BRO grows each year by 10.65%, which is quite nice.
BRO has been paying a dividend for at least 10 years, so it has 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
BRO Yearly Dividends per shareBRO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

BRO pays out 15.60% of its income as dividend. This is a sustainable payout ratio.
The dividend of BRO 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%
BRO Yearly Income VS Free CF VS DividendBRO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
BRO Dividend Payout.BRO Dividend Payout, showing the Payout Ratio.BRO Dividend Payout.PayoutRetained Earnings

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BROWN & BROWN INC

NYSE:BRO (5/23/2025, 6:40:01 PM)

After market: 109 -1.82 (-1.64%)

110.82

+0.39 (+0.35%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-28 2025-04-28/amc
Earnings (Next)07-21 2025-07-21/amc
Inst Owners76.91%
Inst Owner Change3.75%
Ins Owners16.37%
Ins Owner Change2.82%
Market Cap31.76B
Analysts70
Price Target121.69 (9.81%)
Short Float %1.48%
Short Ratio1.82
Dividend
Industry RankSector Rank
Dividend Yield 0.54%
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP15.6%
Div Incr Years31
Div Non Decr Years34
Ex-Date05-12 2025-05-12 (0.15)
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)2.87%
PT rev (3m)4.14%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-0.49%
Valuation
Industry RankSector Rank
PE 27.77
Fwd PE 24.29
P/S 6.42
P/FCF 24.66
P/OCF 23.12
P/B 4.66
P/tB N/A
EV/EBITDA 19.8
EPS(TTM)3.99
EY3.6%
EPS(NY)4.56
Fwd EY4.12%
FCF(TTM)4.49
FCFY4.06%
OCF(TTM)4.79
OCFY4.33%
SpS17.27
BVpS23.8
TBVpS-10.85
PEG (NY)2.84
PEG (5Y)1.24
Profitability
Industry RankSector 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 RankSector 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 3.11
F-Score4
WACC8.61%
ROIC/WACC1.14
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 Year9.43%
Revenue Next 2Y8.56%
Revenue Next 3Y8.3%
Revenue Next 5Y7.67%
EBIT growth 1Y17.89%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year20.3%
EBIT Next 3Y12.55%
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%