DB:BTW

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Executive Summary

Brown & Brown, Inc. markets and sells insurance products and services in the United States, England, Canada, Bermuda, and the Cayman Islands.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Brown & Brown's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BTW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

BTW

2.8%

DE Insurance

2.2%

DE Market


1 Year Return

20.6%

BTW

-4.0%

DE Insurance

12.4%

DE Market

Return vs Industry: BTW exceeded the German Insurance industry which returned -3% over the past year.

Return vs Market: BTW exceeded the German Market which returned 14% over the past year.


Shareholder returns

BTWIndustryMarket
7 Day1.0%2.8%2.2%
30 Day4.3%-3.0%0.8%
90 Day13.5%22.3%18.1%
1 Year21.6%20.6%1.2%-4.0%15.0%12.4%
3 Year115.5%109.1%25.0%8.8%8.5%-0.3%
5 Year179.2%163.4%70.4%35.2%27.8%10.6%

Price Volatility Vs. Market

How volatile is Brown & Brown's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Brown & Brown undervalued compared to its fair value and its price relative to the market?

29.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BTW (€38.6) is trading above our estimate of fair value (€23.63)

Significantly Below Fair Value: BTW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BTW is poor value based on its PE Ratio (29.3x) compared to the DE Insurance industry average (11.3x).

PE vs Market: BTW is poor value based on its PE Ratio (29.3x) compared to the German market (21.9x).


Price to Earnings Growth Ratio

PEG Ratio: BTW is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: BTW is overvalued based on its PB Ratio (3.6x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is Brown & Brown forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BTW's forecast earnings growth (4.9% per year) is above the savings rate (0.2%).

Earnings vs Market: BTW's earnings (4.9% per year) are forecast to grow slower than the German market (25.2% per year).

High Growth Earnings: BTW's earnings are forecast to grow, but not significantly.

Revenue vs Market: BTW's revenue (5.6% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: BTW's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BTW's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Brown & Brown performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BTW has high quality earnings.

Growing Profit Margin: BTW's current net profit margins (17.7%) are higher than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: BTW's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: BTW's earnings growth over the past year (14.3%) is below its 5-year average (14.6% per year).

Earnings vs Industry: BTW earnings growth over the past year (14.3%) exceeded the Insurance industry -12.4%.


Return on Equity

High ROE: BTW's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is Brown & Brown's financial position?


Financial Position Analysis

Short Term Liabilities: BTW's short term assets ($2.7B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: BTW's short term assets ($2.7B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: BTW's debt to equity ratio (45.5%) is considered high.

Reducing Debt: BTW's debt to equity ratio has reduced from 55.2% to 45.5% over the past 5 years.

Debt Coverage: BTW's debt is well covered by operating cash flow (48.4%).

Interest Coverage: BTW's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet


Next Steps

Dividend

What is Brown & Brown current dividend yield, its reliability and sustainability?

0.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BTW's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.23%).

High Dividend: BTW's dividend (0.74%) is low compared to the top 25% of dividend payers in the German market (3.78%).


Stability and Growth of Payments

Stable Dividend: BTW's dividends per share have been stable in the past 10 years.

Growing Dividend: BTW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.4%), BTW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BTW's dividends in 3 years are forecast to be well covered by earnings (22.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

J. Brown (52 yo)

11.08yrs

Tenure

US$5,178,025

Compensation

Mr. J. Powell Brown, CPCU, has been the Chief Executive Officer of Brown & Brown Inc. since July 1, 2009 and has been its President since January 2007. Mr. Brown is responsible for all the operations of Br ...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD5.18M) is about average for companies of similar size in the German market ($USD5.08M).

Compensation vs Earnings: J.'s compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
J. Brown
CEO, President & Director11.08yrsUS$5.18m1.12%
$ 123.1m
R. Watts
Executive VP6.42yrsUS$1.97m0.069%
$ 7.6m
J. Penny
Executive VP & Chief Acquisitions Officer18.58yrsUS$2.09m0.23%
$ 25.3m
Anthony Strianese
Executive VP & President of Wholesale Brokerage Division6.58yrsUS$2.45m0.097%
$ 10.7m
Chris Walker
Executive VP & President of National Programs Division6.58yrsUS$2.49m0.057%
$ 6.2m
Stephen Boyd
Senior Vice President of Technology5.75yrsno datano data
Robert Lloyd
Executive VP11.58yrsno data0.037%
$ 4.0m
Jenny Goco
Director of Communicationsno datano datano data
Julie Turpin
Senior VP & Chief People Officer0.42yrno datano data
Richard Freebourn
Senior VP of Internal Operations5.92yrsno datano data
Sam Boone
Senior Vice President11.58yrsno datano data
Thomas Huval
Senior VP & Regional President of Retail Divisionno datano datano data

6.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: BTW's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
J. Brown
CEO, President & Director11.08yrsUS$5.18m1.12%
$ 123.1m
J. Brown
Chairman of the Board26.58yrsUS$211.22k14.5%
$ 1.6b
Theodore Hoepner
Independent Director26.58yrsUS$159.98k0.039%
$ 4.3m
H. Proctor
Lead Independent Directorno dataUS$165.98k0.012%
$ 1.3m
Samuel Bell
Independent Director27.58yrsUS$159.98k0.026%
$ 2.9m
Toni Jennings
Independent Director13.58yrsUS$159.98k0.017%
$ 1.8m
Hugh Brown
Independent Director16.42yrsUS$159.98k0.016%
$ 1.8m
Chilton Varner
Independent Director16.58yrsUS$159.98k0.025%
$ 2.7m
Wendell Reilly
Independent Director12.83yrsUS$169.98k0.080%
$ 8.8m
Timothy R. Main
Independent Director9.83yrsUS$165.98k0.0090%
$ 989.0k
James Hays
Vice Chairman1.75yrsUS$1.22m0.12%
$ 13.1m
James Hunt
Independent Director7.25yrsUS$169.98k0.0062%
$ 681.2k

13.6yrs

Average Tenure

67yo

Average Age

Experienced Board: BTW's board of directors are seasoned and experienced ( 13.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BTW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Brown & Brown, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brown & Brown, Inc.
  • Ticker: BTW
  • Exchange: DB
  • Founded: 1939
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$12.959b
  • Listing Market Cap: US$10.953b
  • Shares outstanding: 282.81m
  • Website: https://www.bbinsurance.com

Number of Employees


Location

  • Brown & Brown, Inc.
  • 220 South Ridgewood Avenue
  • Daytona Beach
  • Florida
  • 32114
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1975
BTWDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975

Biography

Brown & Brown, Inc. markets and sells insurance products and services in the United States, England, Canada, Bermuda, and the Cayman Islands. It operates through four segments: Retail, National Programs, W ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 02:49
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.