Brown & Brown (BRO)
NYSE:BRO
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Brown & Brown
(NYSE:BRO)
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Rating:67Neutral
Price Target:
$72.00
▲(6.32% Upside)
Action:DowngradedDate:04/28/26
The score is driven primarily by strong financial quality—durable margins and excellent cash conversion—plus generally constructive longer-term guidance around synergy capture and margin targets. These positives are tempered by weak technical trends, near-term integration/margin headwinds discussed on the call, and a valuation that is not especially cheap given the low dividend yield.
Positive Factors
Cash Generation Quality
Near one-for-one FCF conversion demonstrates durable earnings quality for an insurance distributor. Strong operating cash (FY2025 $1.45B) supports debt paydown, M&A funding, buybacks and dividends without relying on volatile underwriting income, underpinning capital flexibility for 2–6 months and beyond.
Negative Factors
Accession Integration & Near-Term Margin Drag
The Accession acquisition is in early integration with seasonality and execution effects causing measurable margin dilution. Management expects modest negative margin impact in Q1 and integration to extend to 2028, creating execution and seasonality risk that could pressure reported margins and EPS through the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation Quality
Near one-for-one FCF conversion demonstrates durable earnings quality for an insurance distributor. Strong operating cash (FY2025 $1.45B) supports debt paydown, M&A funding, buybacks and dividends without relying on volatile underwriting income, underpinning capital flexibility for 2–6 months and beyond.
Read all positive factors
Brown & Brown (BRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.89B
Dividend Yield0.77%
Average Volume (3M)3.09M
Price to Earnings (P/E)12.7
Beta (1Y)0.45
Revenue Growth29.22%
EPS Growth-2.51%
CountryUS
Employees22,888
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)1.39
Shares Outstanding338,947,850
10 Day Avg. Volume2,382,575
30 Day Avg. Volume3,085,131
Financial Highlights & Ratios
PEG Ratio-10.20
Price to Book (P/B)1.97
Price to Sales (P/S)4.15
P/FCF Ratio17.88
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue4.35
Enterprise Value/Gross Profit7.33
Enterprise Value/Ebitda12.90
Forecast
1Y Price Target
$76.57Price Target Upside13.07% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)4.53
Revenue Forecast (FY)$7.15B
Brown & Brown Business Overview & Revenue Model
Company Description
Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. It operates through four segments: Retail, National Programs, Wholesale Brokerage, an...
How the Company Makes Money
Brown & Brown primarily makes money by distributing insurance products and services rather than by underwriting insurance risk. Its core revenue stream is commission income earned when it places insurance policies with third-party insurance carrie...
Brown & Brown Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Data provided by:
The Fly
The FlyBrown & Brown Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call emphasized strong overall financial performance (23% full-year revenue growth, improved margins, >$1.45B cash from operations, record M&A) and constructive long-term positioning (raised margin targets, integration synergies). Headwinds were largely tied to acquisition phasing (Accession below quarterly guidance), quarter-to-quarter organic softness driven by prior-year flood revenue recognition, moderation in CAT/E&S pricing, contingent commission variability, and a notable recruiting event where a start-up took ~275 teammates and $23M of client revenue. Management provided guidance on margin pressure from lower investment income and potential near-term impacts but highlighted robust cash generation, disciplined capital deployment and confidence in integration and organic improvement in 2026.Positive Updates
Strong Top-Line Growth
Total revenues for FY2025 were $5.9 billion, up 23% year-over-year; fourth-quarter revenues were $1.607 billion, up 35.7% year-over-year.
Negative Updates
Organic Revenue Softness in Q4
Consolidated organic revenue decreased 2.8% in Q4 2025; Specialty Distribution organic revenue declined 7.8% in Q4 (primarily due to recognition of $28 million of flood claims processing revenue in Q4 2024 and weaker CAT property pricing).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Total revenues for FY2025 were $5.9 billion, up 23% year-over-year; fourth-quarter revenues were $1.607 billion, up 35.7% year-over-year.
Read all positive updates
Company Guidance
Guidance focused on Accession, margins, contingents and longer‑term targets: Accession’s revenue and profit are now expected to be roughly equally weighted H1/H2 (with H2 skewed to Q3), and its Q4 miss ($405M vs prior $430–450M guidance) reduced Q4 EPS by about $0.05 and lowered company margins by ~200 bps; Accession is expected to have a modest negative impact on adjusted margins in Q1. Management expects $30–40M of EBITDA synergies in 2026, integration to complete by end of 2028, and to remain active on M&A; contingent commissions (which represented >$250M of revenue in 2025) will fluctuate but Specialty Distribution contingents are anticipated to be down ~$15M in 2026. For 2026 they expect lower investment income to put downward pressure on total margins while the underlying business should be relatively flat on margins, Retail organic growth to modestly improve from 2.8% in 2025, Specialty Distribution to be somewhat flat in Q1 with pickup later, an effective tax rate of ~24%–25%, and a raised long‑term adjusted EBITDAC margin target of 32%–37%.Brown & Brown Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.42B | 5.96B | 4.71B | 4.20B | 3.56B | 3.05B |
| Gross Profit | 3.81B | 5.22B | 2.30B | 2.01B | 1.75B | 1.41B |
| EBITDA | 2.17B | 2.04B | 1.73B | 1.55B | 1.21B | 980.70M |
| Net Income | 1.15B | 1.05B | 993.00M | 870.50M | 671.80M | 587.10M |
Balance Sheet | ||||||
| Total Assets | 29.70B | 29.99B | 17.61B | 14.88B | 13.97B | 9.80B |
| Cash, Cash Equivalents and Short-Term Investments | 1.00B | 1.08B | 685.00M | 711.00M | 662.00M | 706.10M |
| Total Debt | 8.06B | 7.92B | 4.06B | 4.02B | 4.18B | 2.25B |
| Total Liabilities | 17.09B | 17.42B | 11.18B | 9.30B | 9.37B | 5.60B |
| Stockholders Equity | 12.59B | 12.55B | 6.44B | 5.58B | 4.61B | 4.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.48B | 1.38B | 1.09B | 941.00M | 829.00M | 763.80M |
| Operating Cash Flow | 1.50B | 1.45B | 1.17B | 1.01B | 881.00M | 808.80M |
| Investing Cash Flow | -7.87B | -7.91B | -898.00M | -587.00M | -1.91B | -396.80M |
| Financing Cash Flow | 7.58B | 7.71B | -64.00M | -187.00M | 1.73B | -210.10M |
Brown & Brown Technical Analysis
Neutral
67.72
Price Trends
68.40
Negative
73.52
Negative
83.07
Negative
Market Momentum
-0.30
Negative
51.11
Neutral
84.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRO, the sentiment is Neutral. The current price of 67.72 is above the 20-day moving average (MA) of 66.24, below the 50-day MA of 68.40, and below the 200-day MA of 83.07, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 84.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRO.
Brown & Brown Risk Analysis
Brown & Brown disclosed 41 risk factors in its most recent earnings report. Brown & Brown reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brown & Brown Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $54.46B | 45.10 | 6.50% | 1.01% | 21.91% | -12.25% | |
71 Outperform | $10.23B | 19.44 | 25.03% | 1.90% | 4.80% | -6.97% | |
69 Neutral | $69.09B | 20.54 | 45.99% | 0.82% | 9.79% | 34.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $20.89B | 12.74 | 9.34% | 0.77% | 29.22% | -2.51% | |
66 Neutral | $27.33B | 20.06 | 20.10% | 1.14% | -2.22% | ― |
* Financial Sector Average
BRO
Brown & Brown
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-46.58
-43.04%
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Brown & Brown Corporate Events
Business Operations and StrategyFinancial Disclosures
Brown & Brown Releases 2025 Global Impact ESG Report
Positive
Apr 9, 2026
On April 8, 2026, Brown Brown issued its 2025 Global Impact Report, covering its environmental, social and governance initiatives for fiscal year 2025 and prepared in alignment with the SASB Professional Commercial Services Standards. The report...
Business Operations and StrategyExecutive/Board Changes
Brown & Brown Adopts 2026 Executive Incentive and Equity Plan
Positive
Mar 4, 2026
On February 26, 2026, Brown Brown’s board compensation committee adopted a 2026 annual cash incentive program for top executives, tying 40% of payouts to organic revenue growth, 40% to adjusted EBITDAC margin, and 20% to individual objectiv...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Brown & Brown Updates 2026 Investor Presentation and Risks
Neutral
Mar 2, 2026
Brown Brown, Inc. disclosed that its management may periodically use a 2026 company overview investor presentation, furnished with a recent Form 8-K, in meetings with institutional investors, analysts, and at investor conferences. The company emp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.