Brown & Brown (BRO) AI Stock Analysis

• Market Cap: $34.75B
• Dividend Yield: 0.56%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.44
• Revenue Growth: 12.57%
• EPS Growth: 10.52%
• Country: US
• Employees: 17,403
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Brokers
• EPS (TTM): 1.29
• Shares Outstanding: 325,895,720
• 10 Day Avg. Volume: 4,856,695
• 30 Day Avg. Volume: 2,573,889
• PEG Ratio: 1.63
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.07
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 8.71
• Enterprise Value/Ebitda: 2.92
• 1Y Price Target: $118.67
• Price Target Upside: 11.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 77 Outperform
• Price Target: $122.00 ▲(14.43%Upside)

Brown & Brown's strong financial performance and strategic acquisitions are major strengths, supporting its market position and growth potential. However, the current technical indicators and high valuation pose short-term risks. The company's commitment to ESG and effective management of economic uncertainties further bolster its long-term outlook.

Positive Factors

Earnings

The transaction is immediately accretive to earnings per share, making the shares more attractive.

Valuation

The shares are trading at a more favorable valuation post-deal, making them seem more attractive relative to historical levels.

Negative Factors

Debt Financing

The deal includes a significant amount of debt financing, which increases the leverage ratio for Brown & Brown.

Dilution

There is modest dilution in 2025 as they raised the financing and are waiting for the deal to close.

Brown & Brown Business Overview & Revenue Model

Company Description

Brown & Brown, Inc. (BRO) is a leading insurance brokerage firm based in the United States. The company operates through several segments, including Retail, National Programs, Wholesale Brokerage, and Services. Brown & Brown provides a wide range of insurance products and services, such as property and casualty insurance, employee benefits, and risk management solutions, catering to both businesses and individuals. With a strong presence in the insurance industry, the company leverages its extensive network and expertise to deliver tailored insurance solutions that meet the diverse needs of its clients.

How the Company Makes Money

Brown & Brown generates revenue primarily through commissions and fees earned from the sale of insurance policies and related services. The company's key revenue streams include commissions from retail insurance brokerage services, fees from national programs that offer specialized insurance products, and earnings from wholesale brokerage services that provide insurance products to other intermediaries. Additionally, Brown & Brown earns income from its services segment, which includes third-party claims administration and other risk management services. The company benefits from its strategic partnerships with insurance carriers and its ability to negotiate favorable terms, enhancing its product offerings and competitive position in the market.

Brown & Brown Financial Statement Overview

Summary

Brown & Brown demonstrates strong financial health characterized by steady revenue growth, high profitability, and efficient cash flow management. The low leverage and solid equity base reduce financial risk, although slight pressures on operating income and assets management warrant monitoring.

Income Statement

Brown & Brown shows strong revenue growth with a 3.23% increase from the previous year. The TTM gross profit margin is robust at 46.0%, and net profit margin is impressive at 21.2%, indicating strong profitability. EBITDA margin stands at 25.1%, showcasing efficient operational management. However, a decrease in EBIT from the previous year suggests some pressure on operating income.

Balance Sheet

The company's balance sheet is stable with a favorable debt-to-equity ratio of 0.04, indicating low leverage and reduced financial risk. Return on Equity is strong at 15.1%, reflecting effective utilization of equity. Equity ratio at 40.8% indicates a solid equity base, but a decline in total assets year-over-year could suggest asset management challenges.

Cash Flow

Free cash flow growth is robust with a 11.13% increase, supporting future investments and debt management. The operating cash flow to net income ratio of 1.33 suggests strong cash generation relative to net income. A free cash flow to net income ratio of 1.26 further underscores the company's strong cash position and ability to sustain operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.84B	4.71B	4.20B	3.56B	3.05B	2.61B
	Gross Profit
2.21B	2.30B	2.01B	1.75B	1.41B	1.17B
	EBIT
1.39B	1.47B	1.18B	978.60M	857.50M	673.40M
	EBITDA
1.76B	1.69B	1.47B	1.23B	1.01B	808.63M
	Net Income Common Stockholders
1.03B	993.00M	870.50M	671.80M	587.10M	480.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
669.00M	685.00M	711.30M	662.00M	706.10M	835.73M
	Total Assets
16.76B	17.61B	14.88B	13.97B	9.80B	8.97B
	Total Debt
3.99B	4.06B	4.02B	4.14B	2.25B	2.31B
	Net Debt
3.32B	3.38B	3.32B	3.49B	1.55B	1.49B
	Total Liabilities
9.92B	11.18B	9.30B	9.37B	5.60B	5.21B
	Stockholders Equity
6.82B	6.44B	5.58B	4.61B	4.20B	3.75B
Cash Flow		Free Cash Flow
1.29B	1.09B	940.60M	828.80M	763.80M	642.30M
	Operating Cash Flow
1.37B	1.17B	1.01B	881.40M	808.80M	713.00M
	Investing Cash Flow
-889.00M	-898.00M	-587.00M	-1.91B	-396.70M	-759.10M
	Financing Cash Flow
-215.00M	-64.00M	-186.70M	1.73B	-210.10M	355.00M

Brown & Brown Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 106.62 is below the 20-day moving average (MA) of 110.25, below the 50-day MA of 112.45, and below the 200-day MA of 109.22, indicating a bearish trend. The MACD of -1.64 indicates Positive momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 33.57 is Neutral, 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
BRO	77 Outperform	$34.75B	29.72	16.18%	0.56%	12.57%	10.52%
AON	75 Outperform	$76.23B	30.08	74.17%	0.84%	19.57%	-8.09%
ERIE	72 Outperform	$16.61B	30.61	32.38%	1.53%	15.05%	26.80%
MMC	70 Outperform	$107.11B	26.66	30.51%	1.50%	7.56%	3.39%
AJG	68 Neutral	$81.09B	48.71	9.27%	0.82%	14.07%	31.44%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
WTW	64 Neutral	$29.38B	―	-0.60%	1.24%	2.42%	-103.64%

Brown & Brown Corporate Events

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.

Brown & Brown Appoints New Principal Accounting Officer

On May 7, 2025, Brown & Brown, Inc. appointed Paul M. Gallagher as the principal accounting officer, succeeding R. Andrew Watts, who remains as Executive Vice President, Chief Financial Officer, and Treasurer. Gallagher, who joined the company in November 2024 as Controller, brings extensive experience from Deloitte & Touche LLP, where he served as Partner in various roles. Additionally, the shareholders approved an amendment to the 2019 Stock Incentive Plan, increasing the shares available for issuance by 6,930,000 and extending the plan’s term. During the annual meeting, shareholders elected directors and ratified Deloitte & Touche LLP as the independent registered public accountants for the fiscal year ending December 31, 2025.

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 Releases 2024 Global Impact Report

On April 2, 2025, Brown & Brown released its annual Global Impact Report for the fiscal year 2024, highlighting its achievements in environmental, social, and governance (ESG) strategies. The company reported strong organic revenue growth across all segments, expanded operating margins, and increased cash flow from operations. Notable accomplishments include receiving several workplace certifications, enhancing diversity and inclusion initiatives, and providing significant support to disaster relief efforts. These efforts underscore Brown & Brown’s commitment to maintaining a strong governance position and supporting the communities it serves, aligning with its long-term goal of creating shareholder value.