Brown & Brown (BRO)
NYSE:BRO
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Brown & Brown
(NYSE:BRO)
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Rating:71Outperform
Price Target:
$63.00
▼(-6.97% Downside)
Action:Upgraded
Date:06/06/26
The score is driven by strong financial performance (durable margins and excellent cash conversion) and a supportive, mixed earnings outlook with Accession synergies and improving cash generation. These positives are tempered by weak technical momentum and near-term organic growth headwinds highlighted on the call.
Positive Factors
Cash conversion quality
Brown & Brown converts nearly all reported earnings into cash (TTM FCF ≈99% of net income). That durable conversion supports funding M&A, dividends, buybacks and debt paydown without depending on volatile market financing, strengthening long‑term financial resilience.
Negative Factors
Weak organic growth ex-contingents
Reported growth relies materially on contingent commissions; underlying organic revenue ex‑contingents is flat or negative. This makes long‑term top‑line expansion dependent on underwriting cycles and contingent payouts rather than sustained volume or pricing, limiting durable revenue visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash conversion quality
Brown & Brown converts nearly all reported earnings into cash (TTM FCF ≈99% of net income). That durable conversion supports funding M&A, dividends, buybacks and debt paydown without depending on volatile market financing, strengthening long‑term financial resilience.
Read all positive factors
Brown & Brown Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Data provided by:
The Fly
The FlyBrown & Brown (BRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.45B
Dividend Yield0.77%
Average Volume (3M)3.48M
Price to Earnings (P/E)17.1
Beta (1Y)0.37
Revenue Growth29.22%
EPS Growth-2.51%
CountryUS
Employees22,888
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)3.55
Shares Outstanding338,947,850
10 Day Avg. Volume3,099,278
30 Day Avg. Volume3,482,683
Financial Highlights & Ratios
PEG Ratio-10.20
Price to Book (P/B)1.97
Price to Sales (P/S)4.15
P/FCF Ratio17.88
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue4.07
Enterprise Value/Gross Profit6.85
Enterprise Value/Ebitda12.05
Forecast
1Y Price Target
$71.54Price Target Upside5.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)4.51
Revenue Forecast (FY)$7.05B
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, an...
How the Company Makes Money
Brown & Brown primarily makes money by distributing insurance products and services rather than by underwriting insurance risk. Its core revenue stream is commission income earned when it places insurance policies with third-party insurance carrie...
Brown & Brown Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call highlighted strong consolidated growth driven by the Accession acquisition, meaningful contingent commission upside, margin expansion, improved cash generation and clear AI/technology initiatives expected to drive long-term productivity and revenue. Offsetting these positives are near-term organic growth headwinds ex-contingents (driven by CAT property rate declines and a pharmacy revenue-model transition), comparable impacts from prior-year flood claims, litigation-related client losses (~$31M annualized) and integration-related margin and cash conversion drag. Management expects sequential organic improvement and full-year benefits from Accession synergies and AI investments.Positive Updates
Strong Consolidated Revenue Growth
Total revenues of $1.9 billion, up 35.4% year-over-year, driven primarily by the Accession acquisition (≈$445 million of recognized revenues for the quarter).
Negative Updates
Organic Growth Pressure (Excluding Contingents)
Overall organic revenue growth was flat year-over-year; organic growth excluding contingent commissions remains pressured (Specialty ex-contingents -2.0) and management expects Q2 organic ex-contingents to be relatively flat due to CAT property weighting.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated Revenue Growth
Total revenues of $1.9 billion, up 35.4% year-over-year, driven primarily by the Accession acquisition (≈$445 million of recognized revenues for the quarter).
Read all positive updates
Company Guidance
Management guided to modest, sequential organic growth improvement each quarter (Q2 expected to be relatively flat on an organic ex-contingents basis due to heavy CAT property placements, with the back half of the year running higher and an informal upper bound for later-year organic around ~2.5%), and said contingent commissions should be up for the year (Q1 contingents rose roughly $54M and last year’s total was about $255M). They reiterated Accession is being integrated (Q1 revenues recognized ≈ $445M, Q1 drag on consolidated adjusted EBITDAC ≈ 200 bps, full‑year Accession adjusted EBITDAC expected ≈ 35%, and $30M–$40M of EBITDA synergies targeted this year). Financial cadence assumptions include continued strong cash generation (Q1 cash flow from operations > $260M, up ≈ $50M or 23%, CFO/total revenue ≈ 14% vs 15% LY) while balancing capital between delevering, M&A, dividends and buybacks (recent $350M repurchase reduced shares by ~5M; weighted average shares ≈ 337M; dividends per share up 10%). Key quarter metrics cited that underpin the outlook: consolidated revenue $1.9B (+35.4%), adjusted EBITDAC up 36.6% with a 38.5% margin (+40 bps), adjusted EPS $1.39 (+7.8%), Retail organic incl. contingents 1.3% (excl. 1%; a 50–100 bps headwind expected from a pharmacy revenue model change), Specialty Distribution organic incl. contingents +3.9% (excl. -2%; ~300 bps drag from ~$12M prior‑year flood claims), and an effective tax rate of 22.8%.Brown & Brown Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.42B | 5.96B | 4.71B | 4.20B | 3.56B | 3.05B |
| Gross Profit | 3.81B | 5.22B | 2.30B | 2.01B | 1.75B | 1.41B |
| EBITDA | 2.17B | 2.04B | 1.73B | 1.55B | 1.21B | 980.70M |
| Net Income | 1.15B | 1.05B | 993.00M | 870.50M | 671.80M | 587.10M |
Balance Sheet | ||||||
| Total Assets | 29.70B | 29.99B | 17.61B | 14.88B | 13.97B | 9.80B |
| Cash, Cash Equivalents and Short-Term Investments | 1.00B | 1.08B | 685.00M | 711.00M | 662.00M | 706.10M |
| Total Debt | 8.06B | 7.92B | 4.06B | 4.02B | 4.18B | 2.25B |
| Total Liabilities | 17.09B | 17.42B | 11.18B | 9.30B | 9.37B | 5.60B |
| Stockholders Equity | 12.59B | 12.55B | 6.44B | 5.58B | 4.61B | 4.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.48B | 1.38B | 1.09B | 941.00M | 829.00M | 763.80M |
| Operating Cash Flow | 1.50B | 1.45B | 1.17B | 1.01B | 881.00M | 808.80M |
| Investing Cash Flow | -7.87B | -7.91B | -898.00M | -587.00M | -1.91B | -396.80M |
| Financing Cash Flow | 7.58B | 7.71B | -64.00M | -187.00M | 1.73B | -210.10M |
Brown & Brown Technical Analysis
Neutral
67.72
Price Trends
61.34
Negative
66.35
Negative
76.04
Negative
Market Momentum
-1.10
Negative
51.72
Neutral
51.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRO, the sentiment is Neutral. The current price of 67.72 is above the 20-day moving average (MA) of 56.81, above the 50-day MA of 61.34, and below the 200-day MA of 76.04, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 51.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRO.
Brown & Brown Risk Analysis
Brown & Brown disclosed 41 risk factors in its most recent earnings report. Brown & Brown reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brown & Brown Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $68.82B | 17.86 | 45.09% | 0.82% | 7.51% | 55.21% | |
72 Outperform | $54.21B | 34.49 | 6.91% | 1.01% | 25.34% | -5.29% | |
71 Outperform | $19.45B | 17.07 | 9.35% | 0.77% | 29.22% | -2.51% | |
71 Outperform | $10.22B | 18.52 | 25.03% | 1.90% | 4.80% | -6.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $24.42B | 15.05 | 20.98% | 1.14% | 0.92% | ― |
* Financial Sector Average
BRO
Brown & Brown
58.86
-48.04
-44.94%
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Brown & Brown Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Brown & Brown Expands and Extends Credit Facilities
Positive
Jun 5, 2026
On June 5, 2026, Brown Brown, Inc. entered into a third amended and restated credit agreement that replaces its October 27, 2021 facility and significantly expands its financing capacity. The deal increases the company’s revolving credit fa...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Brown & Brown Shareholders Expand Equity Plan, Reelect Board
Positive
May 8, 2026
At its May 6, 2026 annual meeting, Brown Brown, Inc. shareholders approved an amendment to the company’s 2019 Stock Incentive Plan, adding 6,900,000 shares for issuance and extending the plan’s term, a move that expands the firm’...
Business Operations and StrategyFinancial Disclosures
Brown & Brown Releases 2025 Global Impact ESG Report
Positive
Apr 9, 2026
On April 8, 2026, Brown Brown issued its 2025 Global Impact Report, covering its environmental, social and governance initiatives for fiscal year 2025 and prepared in alignment with the SASB Professional Commercial Services Standards. The report...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.