NYSE:BRO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

0.5%

NYSE:BRO

0.5%

US Insurance

0.9%

US Market


1 Year Return

21.7%

NYSE:BRO

8.8%

US Insurance

0.3%

US Market

BRO outperformed the Insurance industry which returned 8.3% over the past year.

BRO outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

BROIndustryMarket
7 Day0.5%0.5%0.9%
30 Day4.9%-1.8%-1.9%
90 Day14.0%2.0%1.6%
1 Year23.0%21.7%11.5%8.8%2.6%0.3%
3 Year105.0%97.9%45.8%34.8%41.0%31.8%
5 Year139.5%124.8%66.3%46.6%55.2%38.0%

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

Valuation

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

26.42x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Brown & Brown's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Brown & Brown's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Brown & Brown is overvalued based on earnings compared to the US Insurance industry average.

Brown & Brown is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Brown & Brown is poor value based on expected growth next year.


Price Based on Value of Assets

Brown & Brown is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Brown & Brown's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Brown & Brown's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Brown & Brown's revenue growth is positive but not above the United States of America market average.

Brown & Brown's earnings growth is positive but not above the United States of America market average.

Brown & Brown's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Brown & Brown is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

15.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 US Insurance industry average.


Return on Equity

Brown & Brown has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Brown & Brown used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Brown & Brown has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Brown & Brown's financial position?


Financial Position Analysis

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 cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Brown & Brown's level of debt (46.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (56.4% vs 46.6% today).

Debt is well covered by operating cash flow (40.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

0.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Brown & Brown's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Brown & Brown's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (4.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

J. Brown (51yo)

10.1yrs

Tenure

US$4,189,041

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

J.'s remuneration is lower than average for companies of similar size in United States of America.

J.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

54yo

Average Age

The average tenure for the Brown & Brown management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.4yrs

Average Tenure

73yo

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.


Insider Trading

More shares have been bought than sold by Brown & Brown individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$179,80626 Jul 19
H. Proctor
EntityIndividual
Shares5,000
Max PriceUS$35.97
SellUS$1,020,82815 Mar 19
Anthony Strianese
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Wholesale Brokerage Division
Shares35,000
Max PriceUS$29.17
SellUS$310,47606 Mar 19
Robert Lloyd
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares10,601
Max PriceUS$29.29
SellUS$57,32008 Nov 18
Anthony Strianese
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Wholesale Brokerage Division
Shares2,000
Max PriceUS$28.66

Ownership Breakdown


Management Team

  • Chris Walker (61yo)

    Executive VP & President of National Programs Division

    • Tenure: 0.0yrs
    • Compensation: US$1.81m
  • J. Penny (52yo)

    Executive VP & Chief Acquisitions Officer

    • Tenure: 17.6yrs
    • Compensation: US$1.71m
  • J. Brown (51yo)

    CEO, President & Director

    • Tenure: 10.1yrs
    • Compensation: US$4.19m
  • Richard Freebourn (70yo)

    Senior VP of Internal Operations

    • Tenure: 4.9yrs
  • Robert Lloyd (54yo)

    Executive VP

    • Tenure: 10.6yrs
  • Tony Strianese (57yo)

    Executive VP & President of Wholesale Brokerage Division

    • Tenure: 5.6yrs
    • Compensation: US$1.89m
  • Sam Boone (65yo)

    Senior Vice President

    • Tenure: 10.6yrs
  • R. Watts (50yo)

    Executive VP

    • Tenure: 5.4yrs
    • Compensation: US$1.67m
  • B. Owen

    Senior VP & Chief Information Officer

    • Tenure: 4.5yrs
  • Julie Ryan (47yo)

    Executive VP & Chief People Officer

    • Tenure: 2.6yrs

Board Members

  • J. Brown (82yo)

    Chairman of the Board

    • Tenure: 25.6yrs
    • Compensation: US$208.85k
  • Theodore Hoepner (77yo)

    Independent Director

    • Tenure: 25.6yrs
    • Compensation: US$149.98k
  • Brad Currey (88yo)

    Independent Director

    • Tenure: 24.6yrs
    • Compensation: US$149.98k
  • Samuel Bell (79yo)

    Independent Director

    • Tenure: 26.6yrs
    • Compensation: US$149.98k
  • Toni Jennings (69yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$159.98k
  • Hugh Brown (83yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$149.98k
  • J. Brown (51yo)

    CEO, President & Director

    • Tenure: 10.1yrs
    • Compensation: US$4.19m
  • Wendell Reilly (62yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$155.98k
  • Jim Hays (62yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: US$139.20k
  • Jim Hunt (63yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$159.98k

Company Information

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


Key Information

  • Name: Brown & Brown, Inc.
  • Ticker: BRO
  • Exchange: NYSE
  • Founded: 1939
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$10.236b
  • Shares outstanding: 281.27m
  • 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 Analysis2019/08/19 23:34
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.