BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BRO • US1152361010
74.03 USD
+2.07 (+2.88%)
At close: Feb 4, 2026
74.03 USD
0 (0%)
After Hours: 2/4/2026, 8:06:16 PM
Overall BRO gets a fundamental rating of 4 out of 10. We evaluated BRO against 147 industry peers in the Insurance industry. BRO has an average financial health and profitability rating. BRO is valued expensive and it does not seem to be growing.
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.
- Of the past 5 years BRO 4 years were profitable.
- BRO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- BRO's Return On Assets of 3.36% is fine compared to the rest of the industry. BRO outperforms 68.71% of its industry peers.
- Looking at the Return On Equity, with a value of 7.97%, BRO is doing worse than 66.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.43%, BRO belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BRO is significantly below the industry average of 14.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 7.97% | ||
| ROIC | 5.43% |
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
- The Profit Margin of BRO (18.02%) is better than 85.71% 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 29.15%, BRO belongs to the top of the industry, outperforming 91.16% of the companies in the same industry.
- In the last couple of years the Operating Margin of BRO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.15% | ||
| PM (TTM) | 18.02% | ||
| 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), BRO is creating some value.
- There is no outstanding debt for BRO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- Based on the Altman-Z score of 1.61, we must say that BRO is in the distress zone and has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.61, BRO belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
- The Debt to FCF ratio of BRO is 5.95, which is a neutral value as it means it would take BRO, 5.95 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.95, BRO is doing worse than 65.31% of the companies in the same industry.
- A Debt/Equity ratio of 0.62 indicates that BRO is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.62, BRO is doing worse than 78.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.66
WACC8.25%
2.3 Liquidity
- BRO has a Current Ratio of 1.18. 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 Current ratio of 1.18. This is amongst the best in the industry. BRO outperforms 83.67% of its industry peers.
- BRO has a Quick Ratio of 1.18. This is a normal value and indicates that BRO is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of BRO (1.18) is better than 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.98%, which is quite good.
- BRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.54% yearly.
EPS 1Y (TTM)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%35.73%
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 8.10% yearly.
- Based on estimates for the next years, BRO will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y6.07%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue Next Year20.85%
Revenue Next 2Y13.64%
Revenue Next 3Y10.43%
Revenue Next 5Y3.68%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.22, which indicates a rather expensive current valuation of BRO.
- 62.59% of the companies in the same industry are cheaper than BRO, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of BRO to the average of the S&P500 Index (28.25), we can say BRO is valued slightly cheaper.
- A Price/Forward Earnings ratio of 16.23 indicates a correct valuation of BRO.
- Based on the Price/Forward Earnings ratio, BRO is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
- BRO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than the industry average as 64.63% of the companies are valued more cheaply.
- 62.59% of the companies in the same industry are cheaper than BRO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.46 | ||
| EV/EBITDA | 16.48 |
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.
- BRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)0.84
EPS Next 2Y8.2%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.92%, BRO is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.19, BRO has a dividend in line with its industry peers.
- With a Dividend Yield of 0.92, BRO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
- The dividend of BRO is nicely growing with an annual growth rate of 10.65%!
- BRO has been paying a dividend for at least 10 years, so it has a reliable track record.
- BRO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.65%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
- 18.24% of the earnings are spent on dividend by BRO. This is a low number and sustainable payout ratio.
- The dividend of BRO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.24%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
74.03
+2.07 (+2.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)01-26 2026-01-26/amc
Earnings (Next)04-27 2026-04-27/amc
Inst Owners80.99%
Inst Owner Change-0.92%
Ins Owners13.08%
Ins Owner Change-0.06%
Market Cap25.28B
Revenue(TTM)N/A
Net Income(TTM)987.00M
Analysts66.96
Price Target86.59 (16.97%)
Short Float %4.56%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP18.24%
Div Incr Years31
Div Non Decr Years34
Ex-Date02-04 2026-02-04 (0.165)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.9%
Min EPS beat(2)3.03%
Max EPS beat(2)10.78%
EPS beat(4)3
Avg EPS beat(4)5.69%
Min EPS beat(4)-2.08%
Max EPS beat(4)11.02%
EPS beat(8)7
Avg EPS beat(8)5.75%
EPS beat(12)11
Avg EPS beat(12)6.9%
EPS beat(16)14
Avg EPS beat(16)4.84%
Revenue beat(2)1
Avg Revenue beat(2)1.77%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)4.08%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)4.5%
Revenue beat(8)6
Avg Revenue beat(8)1.9%
Revenue beat(12)9
Avg Revenue beat(12)2.04%
Revenue beat(16)12
Avg Revenue beat(16)1.65%
PT rev (1m)-1.77%
PT rev (3m)-15.03%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-3.22%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 16.23 | ||
| P/S | 4.61 | ||
| P/FCF | 19.46 | ||
| P/OCF | 18.49 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.48 |
EPS(TTM)4.3
EY5.81%
EPS(NY)4.56
Fwd EY6.16%
FCF(TTM)3.8
FCFY5.14%
OCF(TTM)4
OCFY5.41%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)2.83
PEG (5Y)0.84
Graham Number59.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 7.97% | ||
| ROCE | 7.11% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 85.29% | ||
| OM | 29.15% | ||
| PM (TTM) | 18.02% | ||
| GM | N/A | ||
| FCFM | 23.71% |
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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 23.37% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.4% | ||
| Profit Quality | 131.61% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.61 |
F-Score4
WACC8.25%
ROIC/WACC0.66
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)11.98%
EPS 3Y23.37%
EPS 5Y20.54%
EPS Q2Q%8.14%
EPS Next Y6.07%
EPS Next 2Y8.2%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%35.73%
Revenue Next Year20.85%
Revenue Next 2Y13.64%
Revenue Next 3Y10.43%
Revenue Next 5Y3.68%
EBIT growth 1Y14.4%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year36.8%
EBIT Next 3Y22%
EBIT Next 5Y10.16%
FCF growth 1Y40.11%
FCF growth 3Y12.65%
FCF growth 5Y12.53%
OCF growth 1Y38.68%
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 4 / 10 to BRO.
What is the valuation status for 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 6 / 10.
What is the valuation of BROWN & BROWN INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BROWN & BROWN INC (BRO) is 17.22 and the Price/Book (PB) ratio is 2.04.
How sustainable is the dividend of BROWN & BROWN INC (BRO) stock?
The dividend rating of BROWN & BROWN INC (BRO) is 5 / 10 and the dividend payout ratio is 18.24%.