BROWN & BROWN INC (BRO)       59.26  +0.63 (+1.07%)

59.26  +0.63 (+1.07%)

US1152361010 - Common Stock - After market: 59.26 0 (0%)


Fundamental Rating

4

Overall BRO gets a fundamental rating of 4 out of 10. We evaluated BRO against 138 industry peers in the Insurance industry. BRO has a medium financial health rating, its profitability is only medium as well. BRO is quite expensive at the moment. It does show a decent growth rate.




Profitability

Profitability Rating

6

BRO has a Return On Assets of 4.60%. This is amongst the best returns in the industry. The industry average is 0.87%. BRO outperforms 88% of its industry peers.
BRO has a Profit Margin of 18.42%. This is amongst the best returns in the industry. The industry average is 6.77%. BRO outperforms 83% of its industry peers.

BRO has a Return On Equity of 14.58%. This is comparable to the industry average of 13.23%.
The Piotroski-F score of BRO is 4.00. This is a neutral score and indicates average health and profitability for BRO.
VS Industry

ROA (4.6%) VS Industry: 88% outperformed.

-93.12
28.75

ROE (14.58%) VS Industry: 59% outperformed.

0.42
97.81

Profit Margin (18.42%) VS Industry: 83% outperformed.

-285.34
357.97

Valuation

Valuation Rating

0

With a Forward Price/Earnings Ratio of 23.12, BRO is valued rather expensively.
When comparing the current price to the book value of BRO, we can conclude it is valued correctly. It is trading at 3.89 times its book value.
The Price/Earnings Ratio is 26.81, which means the current valuation is very expensive for BRO.
Compared to an average industry Price/Earning Ratio of 11.23, BRO is valued more expensive than its industry peers. On top of this 89% of the companies listed in the same industry are cheaper than BRO!

The high PEG Ratio, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
Compared to an average industry price book ratio of 1.20, BRO is valued more expensive than its industry peers. 91% of the companies listed in the same industry are valued cheaper.
Compared to an average industry Enterprise Value to EBITDA ratio of 8.70, BRO is valued more expensive than its industry peers.
VS Industry

Price/Earnings (26.81) VS Industry: 11% outperformed.

79.44
1.43

Price/Book (3.89) VS Industry: 9% outperformed.

132.72
0.09

Enterprise Value/ EBITDA (18.6) VS Industry: 24% outperformed.

680.94
0.02

Growth

Growth Rating

4

BRO shows quite a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 19.20% yearly.
Measured over the past 5 years, BRO shows a quite strong growth in Revenue. The Revenue has been growing by 11.55% on average per year.
The Earnings Per Share has been growing slightly by 5.74% over the past year.
BRO is expected to show a small growth in Earnings Per Share. In the coming 5 years, the EPS will grow by 8.87% yearly.

BRO shows a decrease in Revenue. In the last year, the revenue decreased by -9.54%.
The Revenue is expected to grow by 8.40% on average over the next 5 years.
The EPS growth is decreasing: in the next 5 years the growth will be less than in the last years.
The Revenue growth is decreasing: in the next 5 years the growth will be less than in the last years.

PastFuture
5Y3Y1Y1Y2Y3Y5Y
EPS19.2% 21.2% 5.74% 6.9% 8.18% 8.72% 8.87%
Revenue11.55% 14.85% -9.54% 17.7% 15.04% 12.27% 8.4%

Health

Health Rating

4

When comparing the Altman-Z score to an average industry score of 1.30, BRO is in better financial health than the average industry peer.
BRO has a Current Ratio of 1.14. 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 1.14. This is a normal value and indicates that BRO is financially healthy and should not expect problems in meeting its short term obligations.
An Altman-Z score of 2.06 indicates that BRO is not a great score, but indicates only limited risk for bankruptcy at the moment.

The Piotroski-F score of BRO is 4.00. This is a neutral score and indicates average health and profitability for BRO.
Compared to an average industry Current Ratio of 1.27, BRO is worse placed to pay its short term obligations than its industry peers.
Compared to an average industry Quick Ratio of 1.27, BRO is worse placed to pay its short term obligations than its industry peers.
BRO has one of the worst Debt to Equity ratios in its industry. 81% of its industry peers require less debt for financing their operations.
VS Industry

Debt/Equity (0.94) VS Industry: 19% outperformed.

17.94
0.00

Quick Ratio (1.14) VS Industry: 33% outperformed.

0.56
10.37

Current Ratio (1.14) VS Industry: 33% outperformed.

0.56
10.37

Altman-Z (2.06) VS Industry: 66% outperformed.

-3.38
12.67

Dividend

Dividend Rating

5

The dividend of BRO is nicely growing with an annual growth rate of 7.60%!
BRO pays out 18.44% of its income as dividend. This is a sustainable payout ratio.
BRO has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BRO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.

With a yearly dividend of 0.81%, BRO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.31, BRO's dividend is way lower than its industry peers. On top of this 90% of the companies listed in the same industry pay a better dividend than BRO!
With a Dividend Yield of 0.81, BRO pays less dividend than the S&P500 average, which is at 2.47.
VS Industry

Dividend Yield (0.81%) VS Industry: 10% outperformed.

0.07
70.26
BRO Daily chart

BROWN & BROWN INC59.26

NYSE:BRO (11/25/2022, 6:48:56 PM)+0.63 (+1.07%)

After market: 59.26 0 (0%)

Chartmill FA Rating
GICS Sector Financials
GICS IndustryGroup Insurance
GICS Industry Insurance
Earnings (Last) 10-24 2022-10-24/amc Earnings (Next) 01-23 2023-01-23
Ins Owners 0.34% Inst Owners 71.68%
Market Cap 16.78B Analysts 71.25
Valuation
PE 26.81 Fwd PE 23.12
PEG (NY) 3.89 PEG (5Y) 1.4
P/S 4.92 P/B 3.89
EV/EBITDA 18.6
Dividend
Dividend Yield 0.81% Dividend Growth 7.6%
DP 18.44% Ex-Date 11-01 2022-11-01 (0.115)
Growth
EPS 1Y 5.74% EPS 3Y 21.2%
EPS 5Y 19.2% EPS growth Q2Q -13.79%
EPS Next Y 6.9% EPS Next 2Y 8.18%
EPS Next 3Y 8.72% EPS Next 5Y 8.87%
Revenue growth 1Y -9.54% Revenue growth 3Y 14.85%
Revenue growth 5Y 11.55% Revenue growth Q2Q 20.42%
Revenue Next Year 17.7% Revenue Next 2Y 15.04%
Revenue Next 3Y 12.27% Revenue Next 5Y 8.4%
Health
Current Ratio 1.14 Quick Ratio 1.14
Altman-Z 2.06 F-Score 4
Debt/Equity 0.94 WACC 7.66%
ROIC/WACC 12.79
Profitability
ROA 4.6% ROE 14.58%
ROICexgc 98.03% ROIC 7.48%
PM 18.42% OM 26.84%
Asset Turnover 0.25

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