Now trading at a price of $102.0, Brown & Brown has moved -1.6% so far today.
Brown & Brown returned gains of 39.3% last year, with its stock price reaching a high of $103.87 and a low of $66.73. Over the same period, the stock outperformed the S&P 500 index by 12.2%. More recently, the company's 50-day average price was $95.78. Brown & Brown, Inc. markets and sells insurance products and services in the United States, Canada, Ireland, the United Kingdom, and internationally. Based in Daytona Beach, FL, the Large-Cap Finance company has 16,152 full time employees. Brown & Brown has offered a 0.5% dividend yield over the last 12 months.
Strong Revenue Growth but Significant Leverage Levels:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,014 | $2,392 | $2,613 | $3,051 | $3,573 | $4,257 |
| Interest Income (M) | $41 | $64 | $59 | $65 | $141 | $190 |
| Operating Margins | 23% | 22% | 24% | 25% | 25% | 27% |
| Net Margins | 17% | 17% | 18% | 19% | 19% | 20% |
| Net Income (M) | $344 | $399 | $480 | $587 | $672 | $870 |
| Depreciation & Amort. (M) | $23 | $23 | $26 | $33 | $39 | $40 |
| Diluted Shares (M) | 276 | 275 | 276 | 277 | 279 | 281 |
| Earnings Per Share | $1.25 | $1.45 | $1.74 | $2.12 | $2.41 | $3.1 |
| EPS Growth | n/a | 16.0% | 20.0% | 21.84% | 13.68% | 28.63% |
| Avg. Price | $26.75 | $32.48 | $41.99 | $53.78 | $63.5 | $102.0 |
| P/E Ratio | 21.4 | 22.87 | 24.56 | 25.86 | 26.68 | 33.33 |
| Free Cash Flow (M) | $526 | $605 | $642 | $764 | $829 | $941 |
| CAPEX (M) | $42 | $73 | $71 | $45 | $53 | $69 |
| EV / EBITDA | 17.5 | 18.48 | 20.5 | 20.78 | 23.45 | 27.54 |
| Total Debt (M) | $1,557 | $1,610 | $2,166 | $2,065 | $4,193 | $4,365 |
| Net Debt / EBITDA | 2.3 | 1.94 | 2.32 | 1.72 | 3.87 | 3.09 |
| Current Ratio | 1.22 | 1.22 | 1.26 | 1.25 | 1.09 | 1.04 |
Brown & Brown has rapidly growing revenues and increasing reinvestment in the business and strong operating margins with a stable trend. Additionally, the company's financial statements display generally positive cash flows and a strong EPS growth trend. Furthermore, Brown & Brown has just enough current assets to cover current liabilities, as shown by its current ratio of 1.04 and significant leverage levels.
Brown & Brown's P/B and P/E Ratios Are Higher Than Average:
Brown & Brown has a trailing twelve month P/E ratio of 27.6, compared to an average of 19.48 for the Finance sector. Based on its EPS guidance of $4.04, the company has a forward P/E ratio of 23.7. Brown & Brown's PEG ratio is 2.12 on the basis of the 13.0% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Brown & Brown is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.82 is higher than the sector average of 1.85. The company's shares are currently trading 174.0% below their Graham number. Overall, Brown & Brown's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Brown & Brown Has an Average Rating of Buy:
The 12 analysts following Brown & Brown have set target prices ranging from $92.0 to $112.0 per share, for an average of $105.2 with a buy rating. The company is trading -3.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Brown & Brown has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 75.5% of the company's shares, and the insider ownership rate stands at 16.35%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $2,926,946,406.
