Brown & Brown Inc
Exchange: NYSESector: Financial ServicesIndustry: Insurance Brokers
Brown & Brown, Inc. is a leading insurance brokerage firm providing enhanced customer-centric risk management solutions since 1939. With a global presence spanning 500+ locations and a team of more than 17,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey.
Did you know?
Trading 46% below its estimated fair value of $96.43.
Current Price
$65.95
+2.41%GoodMoat Value
$96.43
46.2% undervaluedProfile
Valuation (TTM)
Market Cap$22.52B
P/E21.38
EV$29.56B
P/B1.79
Shares Out341.42M
P/Sales3.82
Revenue$5.90B
EV/EBITDA14.49
Brown & Brown Inc (BRO) Stock Analysis
GoodMoat Analysis
Brown & Brown is a large insurance brokerage with a strong competitive position, scoring a 6/14 on the moat framework. Its valuation appears favourable, with the current price of $66.50 offering a significant margin of safety relative to the $96.43 GoodMoat target, indicating it is worth deeper investigation.
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Brown & Brown Inc is a leading insurance brokerage and risk management firm, acting as an intermediary between clients and insurance carriers. Its business model is built on durable competitive advantages, scoring a 6 out of 14 on the GoodMoat framework. Key moat sources include high switching costs due to deeply embedded, mission-critical client relationships, niche dominance in specialty insurance markets, and a decentralized, entrepreneurial culture driven by significant insider ownership. This moat supports strong financial performance, evidenced by a robust 28.7% operating margin and 36.2% YoY revenue growth. The company's quality indicators are mixed, with a strong balance sheet (Debt/Equity of 0.63) but a Return on Equity of 8.4% that falls below the high-quality threshold of 15-20%. Applying the Decision Framework, the company passes the initial Moat & Quality Gate with a score of 6. The valuation assessment is the most compelling aspect. At a price of $66.50, the stock trades at a P/E of 21.6x. The GoodMoat target of $96.43 implies a margin of safety of approximately 31%, which falls within the 'Favourable' 20-40% band. This significant discount to estimated intrinsic value, combined with a passable moat score, makes Brown & Brown a company worthy of a value investor's further due diligence to confirm the sustainability of its growth and margins. Analysis based on data as of 2024-05-15.
Market Cap$22.52B
Current Price$65.95
P/E Ratio21.38
Forward P/E—
PEG Ratio3.12
EPS$3.16
Book Value$36.75
P/B Ratio1.79
BRO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 14.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 6.8B
Revenue
2.4B
FY19
2.6B
FY20
3.1B
FY21
3.6B
FY22
4.3B
FY23
4.8B
FY24
5.9B
FY25
Net Income
399M
FY19
481M
FY20
587M
FY21
672M
FY22
871M
FY23
993M
FY24
1.1B
FY25
BRO 52-Week Range
$63.43
$120.03
50-Day MA: $69.86200-Day MA: $85.16
Did you know?
Earnings per share grew at a 14.2% CAGR.
Brown & Brown Inc (BRO) Financial Summary
Brown & Brown Inc (BRO) is a Financial Services company in the Insurance Brokers industry, listed on NYSE. The stock currently trades at $65.95 with a market capitalization of $22.52B.
Key valuation metrics include a P/E ratio of 21.38, price-to-book ratio of 1.79, and EPS of $3.16. The company reports a profit margin of 17.8% and return on equity of 8.4%.
BRO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $22.52B |
| P/E Ratio | 21.38 |
| EPS | $3.16 |
| P/B Ratio | 1.79 |
| P/S Ratio | 3.82 |
| EV/EBITDA | 14.49 |
| Dividend Yield | 0.86% |
| Profit Margin | 17.8% |
| Return on Equity | 8.4% |
| Debt/Equity | 0.63 |
BRO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.39B | $398.51M |
| FY20 | $2.61B | $480.50M |
| FY21 | $3.05B | $587.10M |
| FY22 | $3.57B | $672.00M |
| FY23 | $4.26B | $871.00M |
| FY24 | $4.80B | $993.00M |
| FY25 | $5.90B | $1.05B |
Brown & Brown Inc (BRO) Valuation
Based on GoodMoat's DCF model, Brown & Brown Inc has a fair value estimate of $96.43. At the current price of $65.95, the stock appears 31.6% undervalued relative to our intrinsic value estimate.
BRO Quality Indicators
Brown & Brown Inc maintains a profit margin of 17.8% and an operating margin of 28.7%. Return on equity stands at 8.4%. The current ratio is 1.04. Debt-to-equity ratio is 0.63.
About Brown & Brown Inc
Brown & Brown, Inc. is a leading insurance brokerage firm providing enhanced customer-centric risk management solutions since 1939. With a global presence spanning 500+ locations and a team of more than 17,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey.
BRO Free Cash Flow
Brown & Brown Inc generated $1.39B in trailing twelve-month free cash flow, representing an FCF yield of 6.18%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
BRO Shares Outstanding
Brown & Brown Inc has 0.34 billion shares outstanding at a share price of $65.95, giving it a market capitalization of $22.52B.