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BRO

Brown & BrownNYSE:BRO Stock Report

Last Price

US$63.13

Market Cap

US$17.8b

7D

-5.8%

1Y

32.9%

Updated

21 Jan, 2022

Data

Company Financials +
BRO fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends0/6

BRO Stock Overview

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

Rewards

Earnings are forecast to grow 8.37% per year

Earnings have grown 14.1% per year over the past 5 years

Risk Analysis

No risks detected for BRO from our risk checks.

Brown & Brown Competitors

Goosehead Insurance

NasdaqGS:GSHD

US$3.4b

BRP Group

NasdaqGS:BRP

US$3.3b

eHealth

NasdaqGS:EHTH

US$584.2m

Accenture

NYSE:ACN

US$212.1b

Price History & Performance

Summary of all time highs, changes and price drops for Brown & Brown
Historical stock prices
Current Share PriceUS$63.13
52 Week HighUS$70.75
52 Week LowUS$42.72
Beta0.73
1 Month Change-6.57%
3 Month Change-5.05%
1 Year Change32.93%
3 Year Change123.87%
5 Year Change191.86%
Change since IPO15,360.42%

Recent News & Updates

Oct 27
Do Brown & Brown's (NYSE:BRO) Earnings Warrant Your Attention?

Do Brown & Brown's (NYSE:BRO) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

BROUS InsuranceUS Market
7D-5.8%-4.0%-6.1%
1Y32.9%19.4%4.2%

Return vs Industry: BRO exceeded the US Insurance industry which returned 19.8% over the past year.

Return vs Market: BRO exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is BRO's price volatile compared to industry and market?
BRO volatility
BRO Average Weekly Movement3.1%
Insurance Industry Average Movement4.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: BRO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BRO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193910,843J. Brownhttps://www.bbinsurance.com

Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, Cayman Islands, Ireland, and the United Kingdom. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. The company offers builders risk, group medical and pharmaceutical, property, commercial auto, homeowners, reinsurance, crop and hail, inland marine, retirement benefit, cyber, disability, risk mitigating warranty products, directors and officers, management liability, errors and omissions, medical stop loss, term life, excess liability, personal auto, umbrella, general liability, prescription drug, workers compensation, and group dental insurance products.

Brown & Brown Fundamentals Summary

How do Brown & Brown's earnings and revenue compare to its market cap?
BRO fundamental statistics
Market CapUS$17.83b
Earnings (TTM)US$582.71m
Revenue (TTM)US$2.95b

30.6x

P/E Ratio

6.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BRO income statement (TTM)
RevenueUS$2.95b
Cost of RevenueUS$1.60b
Gross ProfitUS$1.36b
ExpensesUS$772.88m
EarningsUS$582.71m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 24, 2022

Earnings per share (EPS)2.06
Gross Margin45.90%
Net Profit Margin19.73%
Debt/Equity Ratio49.8%

How did BRO perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

18%

Payout Ratio

Valuation

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

30.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRO ($63.13) is trading above our estimate of fair value ($33.34)

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


Price To Earnings Ratio

PE vs Industry: BRO is poor value based on its PE Ratio (30.6x) compared to the US Insurance industry average (11x).

PE vs Market: BRO is poor value based on its PE Ratio (30.6x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: BRO is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: BRO is overvalued based on its PB Ratio (4.3x) compared to the US Insurance industry average (1.1x).


Future Growth

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

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRO's forecast earnings growth (8.4% per year) is above the savings rate (2%).

Earnings vs Market: BRO's earnings (8.4% per year) are forecast to grow slower than the US market (13.1% per year).

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

Revenue vs Market: BRO's revenue (7.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: BRO's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRO's Return on Equity is forecast to be low in 3 years time (15.4%).


Past Performance

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

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRO has high quality earnings.

Growing Profit Margin: BRO's current net profit margins (19.7%) are higher than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: BRO's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: BRO's earnings growth over the past year (26.8%) exceeds its 5-year average (14.1% per year).

Earnings vs Industry: BRO earnings growth over the past year (26.8%) underperformed the Insurance industry 39.8%.


Return on Equity

High ROE: BRO's Return on Equity (14.2%) is considered low.


Financial Health

How is Brown & Brown's financial position?


Financial Position Analysis

Short Term Liabilities: BRO's short term assets ($3.4B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: BRO's short term assets ($3.4B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: BRO's net debt to equity ratio (26.5%) is considered satisfactory.

Reducing Debt: BRO's debt to equity ratio has increased from 47.8% to 49.8% over the past 5 years.

Debt Coverage: BRO's debt is well covered by operating cash flow (39.6%).

Interest Coverage: BRO's interest payments on its debt are well covered by EBIT (12.9x coverage).


Balance Sheet


Dividend

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

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRO's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: BRO's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: BRO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: BRO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BRO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

J. Brown (53 yo)

15yrs

Tenure

US$7,254,300

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 ($USD7.25M) is below average for companies of similar size in the US market ($USD11.42M).

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


Leadership Team

Experienced Management: BRO's management team is seasoned and experienced (8 years average tenure).


Board Members

Experienced Board: BRO's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: Brown & Brown, Inc.
  • Ticker: BRO
  • Exchange: NYSE
  • Founded: 1939
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Implied Market Cap: US$17.830b
  • Shares outstanding: 282.43m
  • Website: https://www.bbinsurance.com

Number of Employees


Location

  • Brown & Brown, Inc.
  • 300 North Beach Street
  • Daytona Beach
  • Florida
  • 32114
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:37
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.