Brown & Brown, Inc.

Finance
Specialty Insurers
www.bbinsurance.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $29.79B
PE 29
Debt $3.82B
Cash $2.70B
EV $30.90B
FCF $1.03B

Earnings

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Sales & Net Margins

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Earnings	$1.04B
EBIT	$1.38B
ROE	16%
ROA	8%
FCF	$1.03B
Equity	$6.48B
Growth Stability	100%
PE	28.67
PEG	1.36
PB	4.6
P/FCF	29.04
P/S	6.41
Price/Cash	0.09
Debt/Equity	0.59
Debt/FCF	3.72
Net Margins	21%
Op. Margins	30%
Earnings CAGR	17%
Sales Growth YoY	11%
Sales Growth QoQ	1%
Sales CAGR	13%
FCF CAGR	14%
Equity CAGR	12%
Earnings Stability	0.94
Earnings Growth YoY	33%
Earnings Growth QoQ	-10%
Earnings CAGR 5Y	21%

Sales CAGR 5Y	16%
FCF CAGR 5Y	9%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	18%
Sales CAGR 3Y	18%
FCF CAGR 3Y	5%
Equity CAGR 3Y	18%
Market Cap	$29.79B
Revenue	$4.65B
Dividend Yield	0%
Payout Ratio	14%
Assets	$17.53B
Total Debt	$3.82B
Cash	$2.70B
Shares Outstanding	281M
EV	30.9B
Earnings Score	95%
Moat Score	92%
Safety Score	89%
Final Score	92%
Working Capital	954M
Current Ratio	1.15
Shares Growth 3y	1%
Equity Growth QoQ	7%
Equity Growth YoY	25%

Assets & ROA

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Stockholders Equity & ROE

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Brown & Brown Inc is an insurance agent and broker that offers insurance products and services, primarily in the areas of property, casualty, and employee benefits, by connecting customers with insurance companies. It earns its revenue via commissions from insurance companies and direct fees from customers, and it generally has no underwriting risk exposure. More than half of its revenue is from its retail segment, which provides a broad range of insurance products and services to entities and individuals. Roughly a fourth of revenue is from its national programs segment, which provides, among other things, professional liability coverage for professionals. The company operates primarily in the United States, with its highest exposure in Florida.

SEC Filings

Direct access to Brown & Brown, Inc. (BRO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Brown & Brown, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Brown & Brown, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 17%

Stability 94%

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Brown & Brown, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Brown & Brown, Inc..

Years

Calculation mode

= $26B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1B	$1.2B	$1.3B	$1.5B	$1.7B	$1.9B	$2.2B	$2.5B	$2.8B	$3.2B	$3.7B	$37B
DCF		$1.1B	$1.1B	$1.1B	$1.2B	$1.2B	$1.2B	$1.3B	$1.3B	$1.4B	$1.4B	$14B
Value	$26B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	13%	14%	14%	21%	17%	16%	18%	19%	18%	20%	21%
ROA	-	9%	9%	8%	8%	8%	8%	8%	6%	8%	8%
ROE	-	11%	11%	15%	11%	12%	12%	14%	14%	15%	16%

Good Net Margins (21.37%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.12	3.16	2.62	2.96	2.66	3.33	2.3	5.06	4.64	3.72
Debt over Equity	0.59	0.57	0.48	0.42	0.52	0.48	0.58	0.49	0.91	0.78	0.59
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (3.72)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.59)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	5%	6%	6%	7%	19%	9%	17%	17%	19%	16%
Earnings YoY growth	-	18%	6%	55%	-14%	15%	21%	23%	15%	30%	21%
Equity YoY growth	-	2%	10%	9%	16%	12%	12%	12%	10%	21%	14%
FCF YoY growth	-	9%	-9%	17%	26%	15%	8%	38%	-8%	13%	9%