Brown & Brown (BRO) AI Stock Analysis

• Market Cap: $31.26B
• Dividend Yield: 0.63%
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.46
• Revenue Growth: 11.68%
• EPS Growth: -0.17%
• Country: US
• Employees: 17,403
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Brokers
• EPS (TTM): 1.03
• Shares Outstanding: 329,842,800
• 10 Day Avg. Volume: 4,090,696
• 30 Day Avg. Volume: 3,665,867
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 6.35
• Enterprise Value/Gross Profit: 13.85
• Enterprise Value/Ebitda: 18.00
• 1Y Price Target: $109.30
• Price Target Upside: 14.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: $100.00 ▲(5.12% Upside)

Brown & Brown's strong financial performance and strategic acquisitions contribute positively to its outlook. However, technical analysis indicates bearish trends, and valuation metrics suggest potential overvaluation. Despite challenges in organic growth and insurance pricing, the company is well-positioned for future growth with its strategic initiatives.

Positive Factors

Earnings Quality

Brown & Brown with the highest earnings quality and free cash flow conversion of the peer group seems more oversold.

Growth Potential

Insurance inflation in the small to mid-sized brokerage space is expected to outpace the large account space, driving faster organic growth for Brown & Brown.

Valuation

The stock is now trading near trough valuations relative to the insurance broker peers whereas it has typically traded at a thick premium.

Negative Factors

Geographical Risk

There is acknowledged risk related to property and Florida, which makes up about 20% of Brown & Brown's revenues.

Organic Growth

Organic growth decelerated to 3.6%, below consensus estimates of roughly 5.5%.

Valuation Risk

The company’s current valuation at 14.0x EBITDA equates to a multiple of 0.9x the market multiple, which is at a substantial discount to its long-term norm of 1.1x and at a level that has represented an effective floor for BRO shares.

Brown & Brown Business Overview & Revenue Model

Company Description

Brown & Brown, Inc. (BRO) is one of the largest independent insurance brokerage firms in the United States, providing a wide range of insurance products and services. The company operates through several segments, including retail, national programs, and wholesale brokerage. Brown & Brown specializes in offering insurance solutions for various sectors, including property and casualty, employee benefits, and risk management, catering to both individual and business clients.

How the Company Makes Money

Brown & Brown generates revenue primarily through commissions and fees from insurance brokerage services. The company earns commissions as a percentage of the premiums paid by clients when they secure insurance policies through Brown & Brown. Additionally, the firm receives fees for providing consulting and advisory services related to risk management, employee benefits, and other insurance-related needs. Key revenue streams include retail brokerage, which serves small to medium-sized businesses, and national programs, which target specific industries with tailored insurance products. The company also benefits from significant partnerships with various insurance carriers, allowing them to offer a diverse range of products and competitive pricing, further contributing to their earnings.

Brown & Brown Financial Statement Overview

Summary

Brown & Brown showcases strong financial health with impressive revenue growth and profitability margins. The balance sheet reflects prudent leverage and equity management, while cash flow statements indicate robust cash generation. However, there are areas for improvement, such as managing cost pressures and optimizing asset utilization.

Income Statement

Brown & Brown has demonstrated robust revenue growth with a consistent upward trajectory over the years, reflected in a TTM (Trailing-Twelve-Months) revenue of $4.945 billion, up from $2.606 billion in 2020. The company maintains strong profitability margins, with a gross profit margin of 45.8% and a net profit margin of 20.3% in the TTM period. EBIT and EBITDA margins are also healthy at 28.7% and 35.3%, respectively, indicating operational efficiency. However, a slight decline in gross profit from 2024 to the TTM period suggests potential cost pressure.

Balance Sheet

The company exhibits a solid equity base, with a significant increase in stockholders' equity to $11.594 billion in the TTM period from $3.754 billion in 2020. The debt-to-equity ratio has decreased to 0.67, indicating improved leverage management. Return on equity is strong at 8.7%, reflecting effective use of equity capital. However, with an equity ratio of 45.2%, there remains room for optimizing asset utilization. The substantial cash reserves bolster financial stability, though the rise in total assets also suggests increased financial commitments.

Cash Flow

Cash flow generation remains robust, with free cash flow growing to $1.264 billion in the TTM period. The operating cash flow to net income ratio of 1.33 indicates efficient conversion of profits into cash. Free cash flow growth has been positive, supporting the company's investment and financing activities. However, the cash flow from investing activities is negative, reflecting significant capital expenditures and investments, which could impact liquidity if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.95B	4.71B	4.20B	3.56B	3.05B	2.61B
Gross Profit	2.27B	2.30B	2.01B	1.75B	1.41B	1.17B
EBITDA	1.74B	1.69B	1.47B	1.23B	1.01B	808.63M
Net Income	1.01B	993.00M	870.50M	671.80M	587.10M	480.50M
Balance Sheet
Total Assets	25.64B	17.61B	14.88B	13.97B	9.80B	8.97B
Cash, Cash Equivalents and Short-Term Investments	8.89B	685.00M	711.30M	662.00M	706.10M	835.73M
Total Debt	7.78B	4.06B	4.02B	4.18B	2.25B	2.31B
Total Liabilities	14.02B	11.18B	9.30B	9.37B	5.60B	5.21B
Stockholders Equity	11.59B	6.44B	5.58B	4.61B	4.20B	3.75B
Cash Flow
Free Cash Flow	1.26B	1.09B	940.60M	828.80M	763.80M	642.30M
Operating Cash Flow	1.34B	1.17B	1.01B	881.40M	808.80M	713.00M
Investing Cash Flow	-1.01B	-898.00M	-587.00M	-1.91B	-396.70M	-759.10M
Financing Cash Flow	7.54B	-64.00M	-186.70M	1.73B	-210.10M	355.00M

Brown & Brown Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 95.13 is below the 20-day moving average (MA) of 96.08, below the 50-day MA of 103.02, and below the 200-day MA of 108.77, indicating a bearish trend. The MACD of -2.71 indicates Negative momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 87.91 is Negative, 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
AON	78 Outperform	$78.99B	30.67	37.99%	0.78%	18.42%	-4.44%
ERIE	76 Outperform	$17.14B	31.03	31.14%	1.46%	12.19%	17.82%
WTW	70 Outperform	$32.19B	230.62	1.57%	1.09%	1.27%	-84.75%
AJG	68 Neutral	$75.23B	44.23	9.49%	0.85%	15.03%	28.86%
MMC	67 Neutral	$101.76B	24.85	28.33%	1.61%	9.22%	3.05%
BRO	66 Neutral	$31.26B	27.33	11.27%	0.63%	11.68%	-0.17%
Sector *	62 Neutral	C$15.64B	6.64	13.72%	5.97%	22.30%	-10.12%

Brown & Brown Corporate Events

Brown & Brown Expands Board, Appoints New Director

On August 13, 2025, Brown & Brown, Inc., a Florida corporation, expanded its Board of Directors from 13 to 14 members, appointing Joia M. Johnson as a new director. Ms. Johnson, who retired from Hanesbrands Inc. in 2021, brings extensive experience from her roles in various publicly traded companies. Her appointment is expected to enhance the company’s governance, although her specific committee assignments are yet to be determined.

The most recent analyst rating on (BRO) stock is a Hold with a $117.00 price target. To see the full list of analyst forecasts on Brown & Brown stock, see the BRO Stock Forecast page.

Brown & Brown Completes Major Acquisition of RSC Topco

On August 1, 2025, Brown & Brown, Inc. completed its acquisition of RSC Topco, Inc., the holding company for Accession Risk Management Group, for approximately $9.825 billion. This acquisition, which involved a mix of cash and stock considerations, enhances Brown & Brown’s position in the insurance distribution industry, expanding its specialty insurance and risk management services across North America.

The most recent analyst rating on (BRO) stock is a Hold with a $117.00 price target. To see the full list of analyst forecasts on Brown & Brown stock, see the BRO Stock Forecast page.

Brown & Brown Completes $4.2 Billion Senior Notes Issuance

On June 23, 2025, Brown & Brown, Inc. completed the issuance and sale of $4.2 billion in senior notes with varying maturity dates from 2026 to 2055. The proceeds from these notes, along with funds from a previous stock sale and cash on hand, are intended to finance the acquisition of RSC Topco, Inc. If the acquisition is not completed by the specified deadline, the company plans to use the proceeds for general corporate purposes. The issuance involves several covenants, including restrictions on incurring secured debt and asset transfers, and includes a change of control repurchase provision.

The most recent analyst rating on (BRO) stock is a Hold with a $106.00 price target. To see the full list of analyst forecasts on Brown & Brown stock, see the BRO Stock Forecast page.

Brown & Brown Announces $4.2 Billion Notes Offering

On June 10, 2025, Brown & Brown, Inc. announced the pricing of its public offering of 39,215,686 shares of common stock, raising approximately $4 billion. The proceeds, expected to be around $3.9 billion after expenses, will be used to fund a merger with RSC Topco, Inc. and cover associated fees. Additionally, the company entered into a $4.2 billion notes offering on June 11, 2025, with the sale expected to close on June 23, 2025. These financial maneuvers are aimed at enhancing Brown & Brown’s market positioning and operational capabilities, with potential implications for stakeholders depending on the success of the merger and the company’s ability to manage increased indebtedness.

The most recent analyst rating on (BRO) stock is a Hold with a $106.00 price target. To see the full list of analyst forecasts on Brown & Brown stock, see the BRO Stock Forecast page.

Brown & Brown Announces Acquisition of RSC Topco

On June 10, 2025, Brown & Brown, Inc. announced its agreement to acquire RSC Topco, Inc., the holding company for Accession Risk Management Group, for approximately $9.4 billion. This acquisition is expected to close in the third quarter of 2025, subject to customary conditions and regulatory approvals. The merger will enhance Brown & Brown’s market presence by integrating Accession’s specialty insurance and risk management capabilities, thereby expanding its offerings and strengthening its industry position. The transaction is anticipated to drive shareholder value through revenue and cash flow growth, while Accession’s team will join Brown & Brown’s Retail segment, contributing to its decentralized sales and service model.

The most recent analyst rating on (BRO) stock is a Hold with a $106.00 price target. To see the full list of analyst forecasts on Brown & Brown stock, see the BRO Stock Forecast page.