BROWN & BROWN INC (BRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRO - US1152361010 - Common Stock
80.78 USD
-0.04 (-0.05%)
80.78 USD
0 (0%)
BRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. BRO has an average financial health and profitability rating. BRO is quite expensive at the moment. It does show a decent growth rate.
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.
BRO had positive earnings in each of the past 5 years.
Each year in the past 5 years BRO had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.36%, BRO is doing good in the industry, outperforming 68.24% of the companies in the same industry.
BRO's Return On Equity of 7.97% is on the low side compared to the rest of the industry. BRO is outperformed by 66.89% of its industry peers.
BRO has a Return On Invested Capital of 5.43%. This is amongst the best in the industry. BRO outperforms 81.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRO is significantly below the industry average of 14.88%.
| 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 86.49% of its industry peers.
BRO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.15%, BRO belongs to the best of the industry, outperforming 91.22% 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
BRO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BRO has been increased compared to 1 year ago.
BRO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that BRO is in the distress zone and has some risk of bankruptcy.
BRO's Altman-Z score of 1.72 is amongst the best of the industry. BRO outperforms 87.84% of its industry peers.
BRO has a debt to FCF ratio of 5.95. This is a neutral value as BRO would need 5.95 years to pay back of all of its debts.
BRO's Debt to FCF ratio of 5.95 is on the low side compared to the rest of the industry. BRO is outperformed by 64.86% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that BRO is somewhat dependend on debt financing.
The Debt to Equity ratio of BRO (0.62) is worse than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.66
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.18 indicates that BRO should not have too much problems paying its short term obligations.
BRO's Current ratio of 1.18 is amongst the best of the industry. BRO outperforms 82.43% 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 82.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.82% over the past year.
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.
Looking at the last year, BRO shows a quite strong growth in Revenue. The Revenue has grown by 17.85% in the last year.
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)18.82%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%15.38%
Revenue 1Y (TTM)17.85%
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 10.69% yearly.
Based on estimates for the next years, BRO will show a small growth in Revenue. The Revenue will grow by 7.67% on average per year.
EPS Next Y11.59%
EPS Next 2Y11.02%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue Next Year25.28%
Revenue Next 2Y24.34%
Revenue Next 3Y18.19%
Revenue Next 5Y7.67%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 19.10, the valuation of BRO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 64.19% of the companies listed in the same industry.
BRO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 17.07, 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 64.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. BRO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRO is valued a bit more expensive than 65.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BRO is valued a bit more expensive than 63.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.23 | ||
| EV/EBITDA | 18.07 |
4.3 Compensation for Growth
BRO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)0.85
EPS Next 2Y11.02%
EPS Next 3Y10.69%
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 2.42, 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 2.00.
| 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 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
5.3 Sustainability
BRO pays out 18.24% of its income as dividend. This is a sustainable payout ratio.
The dividend of BRO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.24%
EPS Next 2Y11.02%
EPS Next 3Y10.69%
80.78
-0.04 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners80.64%
Inst Owner Change-0.53%
Ins Owners13.09%
Ins Owner Change-0.06%
Market Cap27.58B
Revenue(TTM)5.48B
Net Income(TTM)987.00M
Analysts68.57
Price Target95.91 (18.73%)
Short Float %3.63%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.54
Dividend Growth(5Y)10.65%
DP18.24%
Div Incr Years31
Div Non Decr Years34
Ex-Date
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)-3.07%
PT rev (3m)-14.46%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)0.3%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 17.07 | ||
| P/S | 5.03 | ||
| P/FCF | 21.23 | ||
| P/OCF | 20.18 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.07 |
EPS(TTM)4.23
EY5.24%
EPS(NY)4.73
Fwd EY5.86%
FCF(TTM)3.8
FCFY4.71%
OCF(TTM)4
OCFY4.96%
SpS16.04
BVpS36.28
TBVpS-21.84
PEG (NY)1.65
PEG (5Y)0.85
Graham Number58.76
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 | 1.72 |
F-Score4
WACC8.18%
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)18.82%
EPS 3Y20.59%
EPS 5Y22.36%
EPS Q2Q%15.38%
EPS Next Y11.59%
EPS Next 2Y11.02%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue 1Y (TTM)17.85%
Revenue growth 3Y16.34%
Revenue growth 5Y14.97%
Sales Q2Q%35.41%
Revenue Next Year25.28%
Revenue Next 2Y24.34%
Revenue Next 3Y18.19%
Revenue Next 5Y7.67%
EBIT growth 1Y14.4%
EBIT growth 3Y19.55%
EBIT growth 5Y20.47%
EBIT Next Year36.54%
EBIT Next 3Y22.32%
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 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 6 / 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 19.1 and the Price/Book (PB) ratio is 2.23.
Can you provide the financial health for BRO stock?
The financial health rating of BROWN & BROWN INC (BRO) is 4 / 10.