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Brown & Brown

DB:BTW
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BTW
DB
$10B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

Brown & Brown, Inc. markets and sells insurance products and services in the United States, England, Canada, Bermuda, and the Cayman Islands. The last earnings update was 68 days ago. More info.


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BTW Share Price and Events
7 Day Returns
0.7%
DB:BTW
-0.7%
DE Insurance
-1%
DE Market
1 Year Returns
25%
DB:BTW
20.9%
DE Insurance
-6.2%
DE Market
BTW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Brown & Brown (BTW) 0.7% 7.1% 14.3% 25% 91% 176.3%
DE Insurance -0.7% 3.8% 3.4% 20.9% 60.9% 63.3%
DE Market -1% 2.1% -1.8% -6.2% 10.4% 12.6%
1 Year Return vs Industry and Market
  • BTW outperformed the Insurance industry which returned 20.9% over the past year.
  • BTW outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
BTW
Industry
5yr Volatility vs Market

BTW Value

 Is Brown & Brown undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Brown & Brown to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Brown & Brown.

DB:BTW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $12.15 * 10.9%
$1.32
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $12.15
Discount Rate (Cost of Equity) See below 5.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:BTW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.685 (1 + (1- 21%) (17.2%))
0.852
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.852 * 5.96%)
5.3%

Discounted Cash Flow Calculation for DB:BTW using Excess Returns Model Model

The calculations below outline how an intrinsic value for Brown & Brown is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:BTW Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.9% – 5.3%) * $12.15)
$0.68
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.68 / (5.3% - 0.23%)
$13.31
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $12.15 + $13.31
$25.46
DB:BTW Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:BTW represents 0.8795x of NYSE:BRO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.8795x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 25.46 x 0.8795
€22.39
Value per share (EUR) From above. €22.39
Current discount Discount to share price of €30.80
= -1 x (€30.80 - €22.39) / €22.39
-37.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Brown & Brown is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Brown & Brown's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Brown & Brown's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BTW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.32
NYSE:BRO Share Price ** NYSE (2019-07-16) in USD $35.02
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.48x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 19.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Brown & Brown.

DB:BTW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BRO Share Price ÷ EPS (both in USD)

= 35.02 ÷ 1.32

26.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brown & Brown is overvalued based on earnings compared to the DE Insurance industry average.
  • Brown & Brown is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Brown & Brown's expected growth come at a high price?
Raw Data
DB:BTW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
8.8%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.11x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:BTW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.58x ÷ 8.8%

3.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brown & Brown is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Brown & Brown's assets?
Raw Data
DB:BTW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $10.99
NYSE:BRO Share Price * NYSE (2019-07-16) in USD $35.02
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.08x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:BTW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BRO Share Price ÷ Book Value per Share (both in USD)

= 35.02 ÷ 10.99

3.19x

* Primary Listing of Brown & Brown.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brown & Brown is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess Brown & Brown's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Brown & Brown has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BTW Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Brown & Brown expected to grow at an attractive rate?
  • Brown & Brown's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Brown & Brown's earnings growth is positive but not above the Germany market average.
  • Brown & Brown's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BTW Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BTW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 8.8%
DB:BTW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 7.3%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:BTW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BTW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,707 459 3
2020-12-31 2,496 559 417 9
2019-12-31 2,357 520 382 9
DB:BTW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,127 493 367
2018-12-31 2,010 568 344
2018-09-30 1,976 484 458
2018-06-30 1,920 449 428
2018-03-31 1,913 431 420
2017-12-31 1,857 442 400
2017-09-30 1,817 405 270
2017-06-30 1,804 442 265
2017-03-31 1,785 469 267
2016-12-31 1,763 411 257
2016-09-30 1,734 440 262
2016-06-30 1,704 423 256

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Brown & Brown's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
  • Brown & Brown's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:BTW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Brown & Brown Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BTW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.64 1.70 1.60 4.00
2020-12-31 1.49 1.54 1.45 8.00
2019-12-31 1.35 1.39 1.33 7.00
DB:BTW Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.32
2018-12-31 1.24
2018-09-30 1.65
2018-06-30 1.54
2018-03-31 1.51
2017-12-31 1.43
2017-09-30 0.96
2017-06-30 0.95
2017-03-31 0.95
2016-12-31 0.92
2016-09-30 0.92
2016-06-30 0.91

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Brown & Brown is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Brown & Brown's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Brown & Brown has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BTW Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Brown & Brown's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Brown & Brown's year on year earnings growth rate has been positive over the past 5 years.
  • Brown & Brown's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Brown & Brown's 1-year earnings growth is negative, it can't be compared to the DE Insurance industry average.
Earnings and Revenue History
Brown & Brown's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Brown & Brown Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BTW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,126.98 367.32
2018-12-31 2,009.86 344.26
2018-09-30 1,975.59 458.31
2018-06-30 1,920.39 428.17
2018-03-31 1,913.04 420.35
2017-12-31 1,857.27 399.63
2017-09-30 1,817.04 269.75
2017-06-30 1,804.08 265.38
2017-03-31 1,785.02 266.98
2016-12-31 1,762.79 257.49
2016-09-30 1,733.71 262.17
2016-06-30 1,703.92 256.48
2016-03-31 1,675.51 248.35
2015-12-31 1,656.95 243.32
2015-09-30 1,643.04 210.01 -19.15
2015-06-30 1,631.79 210.80 -13.51
2015-03-31 1,609.23 211.45 -7.52
2014-12-31 1,567.46 206.90
2014-09-30 1,516.68 223.77 26.85
2014-06-30 1,454.26 213.25 28.64
2014-03-31 1,383.72 203.88 26.27
2013-12-31 1,355.50 211.67 22.60
2013-09-30 1,316.44 207.29 19.38
2013-06-30 1,260.55 199.24 15.85
2013-03-31 1,226.34 189.62 15.97
2012-12-31 1,189.08 178.73 15.87
2012-09-30 1,130.14 172.59 14.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Brown & Brown has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Brown & Brown used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • Brown & Brown's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Brown & Brown's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Brown & Brown has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BTW Health

 How is Brown & Brown's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Brown & Brown's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Brown & Brown is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Brown & Brown's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Brown & Brown's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Brown & Brown Company Filings, last reported 3 months ago.

DB:BTW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,098.43 1,495.00 333.00
2018-12-31 3,000.57 1,506.99 451.83
2018-09-30 2,939.41 862.36 435.81
2018-06-30 2,831.48 866.96 489.09
2018-03-31 2,770.59 971.55 579.09
2017-12-31 2,582.70 976.14 598.35
2017-09-30 2,483.65 980.74 575.68
2017-06-30 2,458.23 985.39 630.46
2017-03-31 2,415.80 1,060.04 567.34
2016-12-31 2,360.21 1,073.87 530.69
2016-09-30 2,324.77 1,112.19 501.97
2016-06-30 2,252.25 1,125.50 470.02
2016-03-31 2,198.53 1,138.82 415.73
2015-12-31 2,149.78 1,144.74 457.15
2015-09-30 2,185.74 1,159.84 459.36
2015-06-30 2,113.05 1,166.68 423.29
2015-03-31 2,061.46 1,173.51 351.60
2014-12-31 2,113.75 1,198.47 481.21
2014-09-30 2,105.30 1,198.43 393.54
2014-06-30 2,081.51 1,174.73 321.41
2014-03-31 2,052.86 480.00 260.98
2013-12-31 2,007.14 480.00 213.58
2013-09-30 1,964.78 480.00 182.66
2013-06-30 1,902.06 450.03 397.73
2013-03-31 1,859.26 450.09 347.43
2012-12-31 1,807.33 450.09 228.00
2012-09-30 1,768.81 450.09 252.81
  • Brown & Brown's level of debt (48.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (23.8% vs 48.3% today).
  • Debt is well covered by operating cash flow (33%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.1x coverage).
X
Financial health checks
We assess Brown & Brown's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Brown & Brown has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BTW Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.91%
Current annual income from Brown & Brown dividends. Estimated to be 1.02% next year.
If you bought €2,000 of Brown & Brown shares you are expected to receive €18 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Brown & Brown's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Brown & Brown's dividend is below the markets top 25% of dividend payers in Germany (3.82%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:BTW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:BTW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.39 2.00
2020-12-31 0.36 4.00
2019-12-31 0.33 4.00
DB:BTW Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-24 0.320 1.042
2018-10-10 0.320 1.141
2018-07-12 0.300 1.006
2018-01-19 0.300 1.118
2017-10-12 0.300 1.183
2017-07-13 0.270 1.186
2017-01-20 0.270 1.258
2016-10-12 0.270 1.305
2016-08-05 0.245 1.316
2016-07-18 0.245 1.332
2016-01-20 0.245 1.430
2015-11-04 0.245 1.544
2015-10-19 0.245 1.535
2015-08-07 0.220 1.374
2015-07-20 0.220 1.313
2015-01-21 0.220 1.348
2014-11-06 0.220 1.363
2014-10-20 0.220 1.387
2014-07-18 0.200 1.254
2014-04-24 0.200 1.325
2014-01-22 0.200 1.321
2013-10-16 0.200 1.270
2013-07-17 0.180 1.104
2013-04-19 0.180 1.124
2013-01-16 0.180 1.211
2012-10-23 0.180 1.380
2012-07-18 0.170 1.312
2012-04-24 0.170 1.288
2012-01-18 0.170 1.417
2011-10-19 0.170 1.564
2011-07-20 0.160 1.645
2011-04-20 0.160 1.262
2011-01-19 0.160 1.258
2010-10-20 0.160 1.373
2010-10-18 0.155 1.454
2010-07-21 0.155 1.557
2010-07-19 0.155 1.590
2010-04-13 0.155 1.592
2010-01-20 0.155 1.765
2009-10-21 0.155 1.717
2009-07-22 0.150 1.547
2009-04-22 0.150 1.569
2009-01-21 0.150 1.664
2008-10-22 0.150 1.504
2008-07-23 0.140 1.419

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Brown & Brown's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Brown & Brown's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Brown & Brown afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Brown & Brown has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BTW Management

 What is the CEO of Brown & Brown's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
J. Brown
COMPENSATION $4,189,041
AGE 51
TENURE AS CEO 10 years
CEO Bio

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 Brown & Brown Public Entity Services and oversees certain of Brown & Brown, Inc.'s Central Florida retail profit centers, including Orlando, Brooksville, Leesburg, Melbourne and Titusville, as well as brokerage operations based in Orlando, Florida, Atlanta, Georgia and Bartlesville, Oklahoma. From 2006 to 2009, he served on the board of directors of SunTrust Bank/ Central Florida, a commercial bank and subsidiary of SunTrust Banks, Inc. He is an Executive Officer for certain Brown & Brown subsidiaries. He served as a Regional Executive Vice President of Brown & Brown Inc. since 2002. He has served as Profit Center Manager of Brown & Brown, Inc.'s Orlando, Florida retail office Since 1998. He served as an Account Executive and Marketing Manager of Brown & Brown, Inc.'s Daytona Beach, Florida retail office from 1995 to 1998. Mr. Brown has been a Director of WestRock Company 2015. He served as an Independent Director of WRKCo, Inc. from July 1, 2015 to November 2, 2018. Mr. Brown has been a Director of Brown & Brown Inc. since October 24, 2007. He served as Director of Rock-Tenn Company since January 2010. He is Vice Chairman of Finance for the Board of Governors of the Orlando Regional Chamber of Commerce and is a Director of Junior Achievement of Central Florida, the Bolles School Board of Visitors and the Administrative Board of the SunTrust Center of SunTrust Bank and Central Florida.

CEO Compensation
  • J.'s compensation has been consistent with company performance over the past year, both up more than 20%.
  • J.'s remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Brown & Brown management team in years:

5.5
Average Tenure
54
Average Age
  • The average tenure for the Brown & Brown management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

J. Brown

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
51
TENURE
10 yrs

R. Watts

TITLE
Executive VP
COMPENSATION
$2M
AGE
50
TENURE
5.3 yrs

J. Penny

TITLE
Executive VP & Chief Acquisitions Officer
COMPENSATION
$2M
AGE
52
TENURE
17.5 yrs

Tony Strianese

TITLE
Executive VP & President of Wholesale Brokerage Division
COMPENSATION
$2M
AGE
57
TENURE
5.5 yrs

Chris Walker

TITLE
Executive VP & President of National Programs Division
COMPENSATION
$2M
AGE
61

B. Owen

TITLE
Senior VP & Chief Information Officer
TENURE
4.4 yrs

Robert Lloyd

TITLE
Executive VP
AGE
54
TENURE
10.5 yrs

Julie Ryan

TITLE
Executive VP & Chief People Officer
AGE
47
TENURE
2.5 yrs

Richard Freebourn

TITLE
Senior VP of Internal Operations
AGE
70
TENURE
4.8 yrs

Sam Boone

TITLE
Senior Vice President
AGE
65
TENURE
10.5 yrs
Board of Directors Tenure

Average tenure and age of the Brown & Brown board of directors in years:

15.3
Average Tenure
73
Average Age
  • The average tenure for the Brown & Brown board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

J. Brown

TITLE
Chairman of the Board
COMPENSATION
$209K
AGE
82
TENURE
25.5 yrs

J. Brown

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
51
TENURE
11.8 yrs

Jim Hays

TITLE
Vice Chairman
COMPENSATION
$139K
AGE
62
TENURE
0.7 yrs

Toni Jennings

TITLE
Independent Director
COMPENSATION
$160K
AGE
69
TENURE
12.5 yrs

Wendell Reilly

TITLE
Lead Independent Director
COMPENSATION
$156K
AGE
62

Jim Hunt

TITLE
Independent Director
COMPENSATION
$160K
AGE
63
TENURE
6.2 yrs

Samuel Bell

TITLE
Independent Director
COMPENSATION
$150K
AGE
79
TENURE
26.5 yrs

Brad Currey

TITLE
Independent Director
COMPENSATION
$150K
AGE
88
TENURE
24.5 yrs

Theodore Hoepner

TITLE
Independent Director
COMPENSATION
$150K
AGE
77
TENURE
25.5 yrs

Hugh Brown

TITLE
Independent Director
COMPENSATION
$150K
AGE
83
TENURE
15.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
15. Mar 19 Sell Anthony Strianese Individual 13. Mar 19 13. Mar 19 -35,000 €25.80 €-903,024
06. Mar 19 Sell Robert Lloyd Individual 06. Mar 19 06. Mar 19 -10,601 €25.88 €-274,336
08. Nov 18 Sell Anthony Strianese Individual 07. Nov 18 07. Nov 18 -2,000 €24.98 €-49,960
X
Management checks
We assess Brown & Brown's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Brown & Brown has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BTW News

Simply Wall St News

BTW Company Info

Description

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, Wholesale Brokerage, and Services. The Retail segment offers commercial packages, group medical, workers’ compensation, property risk, and general liability insurance products; and group and individual life, accident, disability, health, hospitalization, medical, dental, and other ancillary insurance products, as well as risk management, loss control survey and analysis, consultancy, and claims processing services. It serves commercial, public and quasi-public entities, professional, and individual customers. The National Programs segment offers professional liability and related package insurance products for dentists, oral surgeons, hygienists, lawyers, optometrists, opticians, ophthalmologists, insurance agents, financial advisors, registered representatives, securities broker-dealers, benefit administrators, real estate title agents, and escrow agents, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also offers outsourced product development, marketing, underwriting, actuarial, compliance, and claims and other administrative services to insurance carrier partners; and commercial and public entity-related programs, and flood insurance products. It serves through independent agents. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance through independent agents and brokers. The Services segment offers third-party claims administration and medical utilization management services in the workers’ compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.

Details
Name: Brown & Brown, Inc.
BTW
Exchange: DB
Founded: 1939
$8,749,782,216
282,042,437
Website: http://www.bbinsurance.com
Address: Brown & Brown, Inc.
220 South Ridgewood Avenue,
Daytona Beach,
Florida, 32114,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BRO Common Stock New York Stock Exchange US USD 06. Jan 1975
DB BTW Common Stock Deutsche Boerse AG DE EUR 06. Jan 1975
Number of employees
Current staff
Staff numbers
9,590
Brown & Brown employees.
Industry
Insurance Brokers
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 21:29
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.