BROWN & BROWN INC (BRO)
US1152361010 - Common Stock
Taking everything into account, BRO scores 6 out of 10 in our fundamental rating. BRO was compared to 141 industry peers in the Insurance industry. BRO scores excellent on profitability, but 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.
BRO had a positive operating cash flow in the past year.
In the past 5 years BRO has always been profitable.
Each year in the past 5 years BRO had a positive operating cash flow.
1.2 Ratios
BRO has a better Return On Assets (5.76%) than 87.77% of its industry peers.
BRO has a better Return On Equity (15.37%) than 74.82% of its industry peers.
With an excellent Return On Invested Capital value of 9.34%, BRO belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BRO is above the industry average of 4.12%.
The last Return On Invested Capital (9.34%) for BRO is above the 3 year average (8.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | 15.37% | ||
| ROIC | 9.34% |
ROA(3y)5.45%
ROA(5y)5.32%
ROE(3y)14.45%
ROE(5y)13.45%
ROIC(3y)8.82%
ROIC(5y)8.43%
1.3 Margins
BRO has a Profit Margin of 20.14%. This is amongst the best in the industry. BRO outperforms 87.05% of its industry peers.
In the last couple of years the Profit Margin of BRO has grown nicely.
BRO has a better Operating Margin (28.53%) than 89.21% of its industry peers.
In the last couple of years the Operating Margin of BRO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.53% | ||
| PM (TTM) | 20.14% | ||
| GM | N/A |
OM growth 3Y3.31%
OM growth 5Y2.66%
PM growth 3Y4.19%
PM growth 5Y3.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRO is still creating some value.
BRO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BRO has been increased compared to 5 years ago.
Compared to 1 year ago, BRO has an improved debt to assets ratio.
2.2 Solvency
BRO has an Altman-Z score of 2.59. This is not the best score and indicates that BRO is in the grey zone with still only limited risk for bankruptcy at the moment.
BRO has a Altman-Z score of 2.59. This is amongst the best in the industry. BRO outperforms 94.96% of its industry peers.
The Debt to FCF ratio of BRO is 4.04, which is a neutral value as it means it would take BRO, 4.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.04, BRO is doing worse than 62.59% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that BRO is somewhat dependend on debt financing.
The Debt to Equity ratio of BRO (0.58) is worse than 68.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.1
WACC8.46%
2.3 Liquidity
BRO has a Current Ratio of 1.03. This is a normal value and indicates that BRO is financially healthy and should not expect problems in meeting its short term obligations.
BRO's Current ratio of 1.03 is amongst the best of the industry. BRO outperforms 80.58% of its industry peers.
BRO has a Quick Ratio of 1.03. 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 Quick ratio value of 1.03, BRO belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
BRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.71%, which is quite impressive.
The Earnings Per Share has been growing by 17.97% on average over the past years. This is quite good.
The Revenue has grown by 19.14% 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 16.15% on average per year.
EPS 1Y (TTM)22.71%
EPS 3Y18.47%
EPS 5Y17.97%
EPS growth Q2Q16%
Revenue 1Y (TTM)19.14%
Revenue growth 3Y17.66%
Revenue growth 5Y16.15%
Revenue growth Q2Q13.85%
3.2 Future
The Earnings Per Share is expected to grow by 15.16% on average over the next years. This is quite good.
BRO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.43% yearly.
EPS Next Y26%
EPS Next 2Y16.85%
EPS Next 3Y15.16%
EPS Next 5YN/A
Revenue Next Year9.22%
Revenue Next 2Y8.22%
Revenue Next 3Y8.43%
Revenue Next 5YN/A
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 stable.
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
BRO is valuated quite expensively with a Price/Earnings ratio of 29.23.
BRO's Price/Earnings ratio is a bit more expensive when compared to the industry. BRO is more expensive than 66.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. BRO is around the same levels.
A Price/Forward Earnings ratio of 23.20 indicates a rather expensive valuation of BRO.
Based on the Price/Forward Earnings ratio, BRO is valued a bit more expensive than the industry average as 70.50% of the companies are valued more cheaply.
BRO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.23 | ||
| Fwd PE | 23.2 |
4.2 Price Multiples
BRO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRO indicates a slightly more expensive valuation: BRO is more expensive than 64.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.91 | ||
| EV/EBITDA | 18.82 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BRO's earnings are expected to grow with 15.16% in the coming years.
PEG (NY)1.12
PEG (5Y)1.63
EPS Next 2Y16.85%
EPS Next 3Y15.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, BRO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.36, BRO is paying slightly less dividend.
With a Dividend Yield of 0.63, BRO pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
The dividend of BRO is nicely growing with an annual growth rate of 9.32%!
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)9.32%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
BRO pays out 15.75% of its income as dividend. This is a sustainable payout ratio.
BRO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.75%
EPS Next 2Y16.85%
EPS Next 3Y15.16%
BROWN & BROWN INC
NYSE:BRO (4/24/2024, 7:04:01 PM)
After market: 82.13 0 (0%)82.13
-0.8 (-0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.23 | ||
| Fwd PE | 23.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.12
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | 15.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.53% | ||
| PM (TTM) | 20.14% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.71%
EPS 3Y18.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.14%
Revenue growth 3Y17.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y