Brown & Brown, Inc. (BRO)
Financials · Insurance Brokers · US stock · S&P 500 component
$74.49
▲ +3.96 (5.61%)
Fair valueUndervalued
$106 +41.9% to fair value
$53fair band $90–$128$159
Day's range
$71.21 – $74.51
52-week range
$53.81 – $90.46
Red flags⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution
About Brown & Brown, Inc.
Brown & Brown is an insurance brokerage that arranges property, casualty, employee benefits and specialty coverage for businesses and individuals, working through many offices in the United States and abroad. It does not take underwriting risk itself. Instead it earns commissions and fees from insurance carriers and clients, and it has expanded largely by acquiring other brokerage firms.
Sales totalled $6.8 billion over the last twelve months, and the three-year record shows growth of 18.2% a year. The operating margin is 28.7%, and the return on invested capital is 8%. The balance sheet shows net debt to EBITDA of 3.7 times. Shareholders receive a dividend, currently yielding 0.9%. The site's X-Ray Score for the company is 54 out of 100.
Price chart
52-wk range $53.81 – $90.46Volume 2,480,248Daily, split-adjusted
Vitals
Market cap$24.9B
52-week range$53.81 – $90.46
Volume (last day)2,480,248
P/E (TTM)20.3
EBIT / EV yield6.1%
Free-cash-flow yield5.8%
Dividend yield0.9%
Revenue (TTM)$6.8B
Net income (TTM)$1.2B
Operating margin28.7%
Return on capital7.7%
Debt incl. leases$8.1B
Cash & securities$918M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$106middle half of models $85 – $122
Undervalued
+41.9% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $74
Undervalued < $90Fair $90 – $128Overvalued > $128
P/E multiple
$78
P/B multiple
$118
P/S multiple
$86
EV/EBITDA multiple
$80
EV/EBIT multiple
$86
EV/revenue multiple
$80
10-year DCF, EBITDA exit
$138
5-year DCF, EBITDA exit
$122
10-year DCF, revenue exit
$137
5-year DCF, revenue exit
$122
10-year DCF, growth exit
$131
5-year DCF, growth exit
$116
Dividend discount, multi-stage
$84
Earnings power value
$101
Growth the price implies
7.8%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Financials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
65/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield6.1%
Free-cash-flow yield5.8%
Fair value vs price1.4×
Growth
Strong
71/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)18.2%
EPS growth (3y)10.1%
Growth consistency100%
Profitability
Weak
50/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital7.7%
Operating margin28.7%
Financial health
Weak
22/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score3 / 9
Net debt / EBITDA3.7×
Interest cover4.9×
Dividends
Fair
63/100
Dividend is typical for its sector.
See the numbers →
Dividend yield0.9%
Dividends vs free cash flow15%
Dividend growth17.2%
Quarterly results: last 6 quarters
+11.6%
Mar '25
+9.1%
Jun '25
+35.4%
Sep '25
+35.8%
Dec '25
+35.4%
Mar '26
+30.4%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.7B, diluted EPS $0.84.
Compare with peers
MRSH Marsh & Mclennan Compa...50 AON Aon plc48 AJG Arthur J. Gallagher &...46 WTW Willis Towers Watson P...37Other Insurance Brokers companies by X-Ray Score.
SWOT analysis: Brown & Brown, Inc.
Strengthsinside the company
- Operating margin of 28.7% is well above the 21.8% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 18.2% a year over three years (median 10.2% for industry peers).
- Free cash flow equals 5.8% of the market value, which funds dividends, buybacks or debt paydown.
Weaknessesinside the company
- Return on invested capital of 7.7% is well below the 13.5% median of industry peers.
- Net debt is 3.7x EBITDA, above the 3x level that lenders usually watch.
- Passes only 3 of the 9 Piotroski tests, which shows weak or worsening financial trends.
Opportunitiesvaluation and setting
- Revenue growth picked up to 22.8% last year from 18.2% a year over three years.
- The price is 42% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Financials as favourable.
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Our checks raised: Heavy dilution; Heavy dilution.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare BRO with peers and sector
Medians of 4 Insurance Brokers peers and of 70 Financials stocks in our universe.
Largest peers (X-Ray Score): MRSH 50, AJG 46, AON 48, WTW 37.
| Metric | BRO | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 54 | 47 | 50 |
| Valuation | 65 | 46 | 52 |
| Growth | 71 | 62 | 54 |
| Profitability | 49 | 47 | 48 |
| Financial health | 22 | 34 | 51 |
| Dividends | 63 | 57 | 54 |
Sector leaders: highest X-Ray Score in Financials
BRO ranks #29 of 71 in Financials and #1 of 5 in Insurance Brokers by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for BRO
Each factor is rated by where BRO stands among the 71 Financials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 3 Good · 10 Average · 7 Bad of 20
Growth: 2 · 1 · 0
Profitability: 0 · 2 · 2
Financial strength: 1 · 0 · 3
Valuation: 0 · 3 · 2
Cash flow: 0 · 4 · 0
| Factor | BRO | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +18.2% | Good beats 88% | +8.3% | – | – |
| Revenue growth, last year | +22.8% | Good beats 93% | +6.9% | +17.1% | ▲ Better |
| EPS growth, 3 years a year | +10.1% | Average beats 38% | +12.7% | – | – |
| Profitability | |||||
| Operating margin | 28.7% | Average beats 48% | 29.1% | 28.5% | ≈ In line |
| Net margin | 17.7% | Average beats 41% | 21.8% | 19.2% | ≈ In line |
| Return on invested capital | 7.7% | Bad beats 25% | 13.5% | – | – |
| Return on equity | 9.6% | Bad beats 24% | 15.7% | 14.6% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 3.7x | Bad beats 17% | 1.1x | 2.3x | ▼ Worse |
| Interest cover | 4.9x | Bad beats 8% | 50.0x | 7.2x | ▼ Worse |
| Current ratio | 1.13 | Good beats 67% | 1.05 | 1.09 | ≈ In line |
| Piotroski F-score | 3 / 9 | Bad beats 3% | 7 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 20.6x | Bad beats 30% | 13.8x | 23.7x | ▲ Better |
| Price / book | 2.0x | Average beats 59% | 2.2x | 3.6x | ▲ Better |
| Price / sales | 3.7x | Average beats 41% | 3.1x | 4.7x | ▲ Better |
| EV / EBITDA | 16.5x | Bad beats 28% | 10.8x | 18.9x | ▲ Better |
| Free cash flow yield | 5.8% | Average beats 49% | 5.8% | 4.7% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 21.3% | Average beats 45% | 23.2% | 23.2% | ≈ In line |
| Cash from operations / net income | 1.26 | Average beats 51% | 1.25 | 1.31 | ≈ In line |
| Free cash flow growth, 3 years a year | +18.6% | Average beats 62% | +12.7% | – | – |
| Accruals (lower is better) | −1.1% | Average beats 52% | −1.0% | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 4 Good · ● 7 Average · ● 4 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldAverage
Risk models
Altman Z''Average
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioGood
Net debt / EBITDABad
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 49/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $3.1B | $3.6B | $4.3B | $4.8B | $5.9B |
| Operating income | $828M | $1.0B | $1.3B | $1.5B | $1.7B |
| Net income | $587M | $672M | $871M | $993M | $1.1B |
| Operating cash flow | $809M | $881M | $1.0B | $1.2B | $1.5B |
| Operating margin | 27.1% | 28.5% | 31.4% | 31.1% | 28.3% |
| Free cash flow | $764M | $829M | $941M | $1.1B | $1.4B |
| Diluted EPS | $2.07 | $2.37 | $3.05 | $3.46 | $3.16 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Bullish
7 bullish · 1 neutral · 4 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
| SMA 10 | 67.79 | Bullish |
| EMA 10 | 68.67 | Bullish |
| SMA 20 | 64.48 | Bullish |
| EMA 20 | 66.74 | Bullish |
| SMA 50 | 67.19 | Bullish |
| EMA 50 | 66.41 | Bullish |
| SMA 100 | 66.35 | Bullish |
| EMA 100 | 66.67 | Bullish |
| SMA 200 | 66.72 | Bullish |
| EMA 200 | 69.72 | Bullish |
Oscillators (daily)
| RSI (14) | 75.22 | Bearish |
| MACD (12, 26) | 1.61 | Bullish |
| Momentum (12) | 22.17 | Bullish |
| Stochastic %K (14) | 99.87 | Bearish |
| Williams %R (14) | -0.13 | Bearish |
| CCI (20) | 176.0 | Bearish |
Pivot points (classic, last session)
S3 68.99 | S2 70.10 | S1 72.29 | Pivot 73.40 | R1 75.60 | R2 76.71 | R3 78.90 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.66 USD
Yield on today's price
0.89%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.1650 | |
| 0.1650 | |
| 0.1650 | |
| 0.1650 | |
| 0.1500 | |
| 0.1500 | |
| 0.1500 | |
| 0.1500 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 | |
| 0.1300 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold BRO
| ETF | Share of the fund |
|---|---|
| KIE SPDR S&P Insurance | 1.91% |
| CGMM Capital Group U.S. Small and Mid Cap | 1.58% |
| KNG FT Cboe Vest S&P 500 Dividend Aristocr... | 1.48% |
| NOBL ProShares S&P 500 Dividend Aristocrats | 1.20% |
| FEGE First Eagle Global Equity | 0.61% |
| FVD First Trust Value Line Dividend Index | 0.43% |
| VOT Vanguard Mid-Cap Growth | 0.41% |
| SDY SPDR S&P Dividend | 0.39% |
The eight funds with the largest weight in BRO among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
BRO stock splits
BRO has split its stock 6 times since 1991. The latest was a 2-for-1 split on 29 Mar 2018.
Full BRO stock split history →BRO SEC filings
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Director or officer change; Shareholder vote results
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.