BRO:NYE-Brown & Brown, Inc (USD)

COMMON STOCK | Insurance Brokers | NYE

Last Closing Price

USD 47.49

Change

0.00 (0.00)%

Market Cap

USD 13.49B

Volume

0.73M

Average Target Price

USD 49.27 (+3.75%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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. The company was founded in 1939 and is headquartered in Daytona Beach, Florida. Address: 220 South Ridgewood Avenue, Daytona Beach, FL, United States, 32114

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-01-23 )

Largest Industry Peers for Insurance Brokers

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
MMC Marsh & McLennan Companies, In..

N/A

USD56.56B 28.02 17.27
AON Aon Plc

N/A

USD47.20B 26.61 13.50
AJG Arthur J. Gallagher & Co

N/A

USD22.66B 29.45 17.07
CRD-A Crawford & Company

N/A

USD0.43B 36.82 8.95
CRD-B Crawford & Company

N/A

USD0.43B 37.10 8.89

ETFs Containing BRO

Symbol Name Weight Mer Price(Change) Market Cap
KIE SPDR S&P Insurance ETF 0.00 % 0.35 %

N/A

USD0.35B
PXMG Invesco S&P MidCap Moment.. 0.00 % 0.39 %

N/A

USD0.61B
VBR Vanguard Small-Cap Value .. 0.00 % 0.07 %

N/A

USD36.14B
XMMO Invesco S&P MidCap Moment.. 0.00 % 0.39 %

N/A

USD0.85B

Market Performance

  Market Performance vs.
Industry/Classification (Insurance Brokers)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 0.17% 67% D+ 30% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 0.17% 67% D+ 29% F
Trailing 12 Months  
Capital Gain 13.53% 83% B 69% D+
Dividend Return 0.83% 17% F 13% F
Total Return 14.36% 83% B 68% D+
Trailing 5 Years  
Capital Gain 228.99% 100% A+ 91% A-
Dividend Return 10.43% 33% F 28% F
Total Return 239.43% 83% B 91% A-
Average Annual (5 Year Horizon)  
Capital Gain 23.90% 100% A+ 92% A-
Dividend Return 1.21% 33% F 32% F
Total Return 25.12% 100% A+ 92% A-
Risk Return Profile  
Volatility (Standard Deviation) 10.83% 67% D+ 68% D+
Risk Adjusted Return 231.80% 83% B 100% A+
Market Capitalization 13.49B 50% F 85% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Insurance Brokers)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 29.50 50% F 28% F
Price/Book Ratio 3.68 67% D+ 26% F
Price / Cash Flow Ratio 19.89 67% D+ 19% F
EV/EBITDA 18.89 17% F 33% F
Management Effectiveness  
Return on Equity 13.10% 50% F 78% C+
Return on Invested Capital 8.47% 50% F 66% D
Return on Assets 5.71% 67% D+ 84% B
Debt to Equity Ratio 44.78% 100% A+ 64% D
Technical Ratios  
Short Ratio 3.04 50% F 34% F
Short Percent 1.53% 40% F 75% C
Beta 0.66 100% A+ 76% C
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.