Brown & Brown (BRO) AI Stock Analysis

• Market Cap: $27.38B
• Dividend Yield: 0.77%
• Average Volume (3M): 2.27M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.39
• Revenue Growth: 17.87%
• EPS Growth: -9.35%
• Country: US
• Employees: 17,403
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 1.05
• Shares Outstanding: 341,420,780
• 10 Day Avg. Volume: 2,438,878
• 30 Day Avg. Volume: 2,271,100
• PEG Ratio: 2.17
• Price to Book (P/B): 4.47
• Price to Sales (P/S): 6.11
• P/FCF Ratio: 26.35
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 5.24
• Enterprise Value/Gross Profit: 10.61
• Enterprise Value/Ebitda: 14.83
• 1Y Price Target: $94.10
• Price Target Upside: 17.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.24
• Revenue Forecast (FY): $5.93B

• Rating: 76 Outperform
• Price Target: $92.00 ▲(14.74% Upside)

Brown & Brown's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust revenue growth and strategic acquisitions bolster its position in the industry. However, technical analysis indicates a bearish trend, and valuation metrics suggest the stock is fairly valued, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market expansion and product adoption, enhancing long-term competitive positioning.

Strategic Acquisitions

Strategic acquisitions expand market reach and service offerings, strengthening the company's competitive edge and growth potential.

Cash Flow Growth

Improved cash flow generation enhances financial stability and supports future investments and shareholder returns.

Negative Factors

Retail Segment Challenges

Challenges in the retail segment could hinder growth, requiring strategic adjustments to maintain competitive positioning.

Margin Pressure

Margin pressure in Specialty Distribution may affect profitability, necessitating efficiency improvements to sustain margins.

Anticipated Growth Decline

Expected decline in Specialty Distribution growth highlights potential revenue volatility, impacting short-term performance.

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, and Services. The Retail segment offers property and casualty, employee benefits insurance products, personal insurance products, specialties insurance products, 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 dentistry, legal, eyecare, insurance, financial, physicians, real estate title professionals, 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.

How the Company Makes Money

Brown & Brown generates revenue primarily through commissions and fees earned from the sale of insurance products and services. The company acts as an intermediary between clients and insurance carriers, receiving a commission based on the premiums paid by clients for their insurance policies. Additionally, it earns revenue through consulting services, providing risk management advice, and other related services. The company's revenue model is further supported by its strategic acquisitions of smaller brokerage firms, which not only expand its market reach but also enhance its service offerings. Significant partnerships with various insurance carriers also play a crucial role in its earnings by allowing Brown & Brown to offer a wide range of products tailored to the needs of its clients.

Brown & Brown Financial Statement Overview

Summary

Brown & Brown exhibits strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is robust, characterized by low leverage and healthy returns on equity. Cash flow metrics are positive, although there is potential for enhancing cash flow efficiency.

Income Statement

Brown & Brown demonstrates strong revenue growth with an 8.56% increase in TTM, supported by a solid gross profit margin of 49.35%. The net profit margin is robust at 18.75%, indicating effective cost management. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential pressure on operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.03 in TTM, reflecting strong financial stability and low leverage. Return on equity is healthy at 10.72%, although it has decreased from previous years. The equity ratio is not provided, but the overall balance sheet indicates a strong position with manageable debt levels.

Cash Flow

Operating cash flow and free cash flow have shown positive growth, with free cash flow increasing by 6.57% in TTM. The free cash flow to net income ratio is high at 98.54%, indicating efficient cash generation relative to earnings. However, the operating cash flow to net income ratio is relatively low, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.33B	4.71B	4.20B	3.56B	3.05B	2.61B
Gross Profit	2.63B	2.30B	2.01B	1.75B	1.41B	1.17B
EBITDA	1.88B	1.73B	1.55B	1.21B	980.70M	817.90M
Net Income	999.00M	993.00M	870.50M	671.80M	587.10M	480.50M
Balance Sheet
Total Assets	29.35B	17.61B	14.88B	13.97B	9.80B	8.97B
Cash, Cash Equivalents and Short-Term Investments	1.19B	685.00M	711.00M	662.00M	706.10M	835.73M
Total Debt	7.97B	4.06B	4.02B	4.18B	2.25B	2.31B
Total Liabilities	16.95B	11.18B	9.30B	9.37B	5.60B	5.21B
Stockholders Equity	12.39B	6.44B	5.58B	4.61B	4.20B	3.75B
Cash Flow
Free Cash Flow	1.35B	1.09B	941.00M	829.00M	763.80M	642.30M
Operating Cash Flow	1.37B	1.17B	1.01B	881.00M	808.80M	713.00M
Investing Cash Flow	-8.48B	-898.00M	-587.00M	-1.91B	-396.80M	-759.10M
Financing Cash Flow	8.13B	-64.00M	-187.00M	1.73B	-210.10M	355.00M

Brown & Brown Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRO, the sentiment is Negative. The current price of 80.18 is above the 20-day moving average (MA) of 79.98, below the 50-day MA of 82.23, and below the 200-day MA of 99.80, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 66.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRO.

Brown & Brown Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRO	76 Outperform	$27.38B	24.06	10.47%	0.77%	17.87%	-9.35%
WTW	75 Outperform	$31.84B	15.87	27.79%	1.14%	―	―
MMC	71 Outperform	$90.49B	22.15	28.62%	1.86%	10.57%	2.57%
ERIE	70 Outperform	$13.22B	23.08	30.44%	1.90%	9.64%	15.87%
AJG	69 Neutral	$65.07B	40.31	9.05%	1.03%	17.17%	19.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AON	66 Neutral	$75.24B	28.03	38.33%	0.82%	14.06%	5.52%

Brown & Brown Corporate Events

Brown & Brown Appoints New Retail Segment President

Brown & Brown, Inc. announced that effective October 17, 2025, Stephen P. Hearn has been appointed as the President of the Retail Segment. He will take over the responsibilities from P. Barrett Brown, who has commenced a personal leave of absence on the same date. Mr. Hearn will continue in his roles as Executive Vice President and Chief Operating Officer, enhancing his leadership within the company.