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Brown & Brown, Inc. (BRO) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Brown & Brown, Inc.

BROMarket cap $20BPrice $61.0

Country🇺🇸United States

SectorFinancials

IndustryInsurance

Sells insurance policies to other people, then collects commissions and fees for doing it. One of America's largest insurance brokers, built almost entirely through decades of relentless acquisitions rather than organic growth.

In Bastion Portfolios?

52W Return-30%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+17%9

Revenue Forecast

Rev CAGR (1y)+21%8

Rev CAGR (3y)+10%7

Rev CAGR (5y)+10%7

Earnings Forecast

EPS Growth Y+1+42%9

EPS Growth Y+2+6%5

EPS Growth Y+3+9%6

Quality

Margins

EBIT Margin36%9

Net Income Margin18%7

Free Cash Flow Margin22%8

Debt

Net Debt/EBITDA2.44

Efficiency

ROE10%4

ROA4%6

Earnings Stability88

GEAR+VERY STRONG91

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)147

P/E Ratio (Forward 3y)126

P/BV1.68

EV Multiples

EV/EBITDA Fwd117

EV/EBIT Fwd167

Yield

Free Cash Flow Yield0.0%6

Dividend Yield1.1%3

Momentum

Short term

1 month return-15%1

3 month return-12%3

YTD return-23%2

Mid term

Price vs 52wHigh64%2

1 year return-36%1

Long term

3 year return-12%2

5 year return+6%4

Risk Shield

Price Risk

Beta0.48

Volatility32%6

Free Cash Flow

Free Cash Flow Margin22%8

Free Cash Flow Yield0.0%6

Quality

ROCE11%6

Earnings Stability88

Net Debt/EBITDA2.44

02Growth

Is it actually growing, and how fast?

BROBrown & Brown

Revenue FY25$5.8B

GROWTH RATING↗

STRONG72 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+17%9

Revenue, next 1Y+21%8

Revenue, next 3Y, CAGR+10%7

Revenue, next 5Y, CAGR+10%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+42%9

EPS growth, FY27E+6%5

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 72% of companies worldwide.

Revenue grew 17%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 10%/yr over the next 3 years, ahead of most of the market.7/10

The runway holds up: revenue is set to grow 10%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 9%/yr vs revenue 10%/yr).

WATCH

Revenue grew 17%/yr over the last 3 years; forecasts see it cooling to 10%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK6 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-15%1

3-month return-12%3

YTD return-23%2

MID & LONG-TERM▾SCORE

% of 52-week high64%2

1-year return-36%1

3-year return-12%2

5-year return+6%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-12% over three years and +6.3% over five), behind 70% of the market.

It's down 36% over the past year, now 36% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-15%), over three months (-12%) and so far this year (-23%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Brown &. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

BROBrown & Brown

Revenue FY25$5.8B

GROWTH RATING↗

STRONG72 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+17%9

Revenue, next 1Y+21%8

Revenue, next 3Y, CAGR+10%7

Revenue, next 5Y, CAGR+10%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+42%9

EPS growth, FY27E+6%5

EPS growth, FY28E+9%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 72% of companies worldwide.

Revenue grew 17%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 10%/yr over the next 3 years, ahead of most of the market.7/10

The runway holds up: revenue is set to grow 10%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 9%/yr vs revenue 10%/yr).

WATCH

Revenue grew 17%/yr over the last 3 years; forecasts see it cooling to 10%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK6 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-15%1

3-month return-12%3

YTD return-23%2

MID & LONG-TERM▾SCORE

% of 52-week high64%2

1-year return-36%1

3-year return-12%2

5-year return+6%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-12% over three years and +6.3% over five), behind 70% of the market.

It's down 36% over the past year, now 36% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-15%), over three months (-12%) and so far this year (-23%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Brown &. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community