Brown & Brown BRO
Brown & Brown is an independent insurance broker that sells property, casualty, and employee benefits policies to businesses and individuals, earning commissions for intermediation. Brown & Brown shows exceptional quality with an operating margin of 41.84% and a net margin of 18.08%, but its valuation (P/E 19.43) and momentum (21% decline in 12 months) reflect a price that already discounts part of the sector's pressures. Revenue growth of 32.40% is solid, though earnings growth (7.10%) is more moderate.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Brown & Brown is an independent insurance broker that sells property, casualty, and employee benefits policies to businesses and individuals, earning commissions for intermediation. Brown & Brown shows exceptional quality with an operating margin of 41.84% and a net margin of 18.08%, but its valuation (P/E 19.43) and momentum (21% decline in 12 months) reflect a price that already discounts part of the sector's pressures. Revenue growth of 32.40% is solid, though earnings growth (7.10%) is more moderate.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.8 |
| Quality / Moat | 8.4 |
| Valuation | 3.6 |
| Growth | 7.5 |
| Dividend | 4.6 |
| Momentum | 2.2 |
| Risk & Context | 7.7 |
OVERALL SCORE: 5.9/10
Context and risks
The insurance brokerage business is long-duration: its commission flows are stable and long-term, so the rise in 10-year rates (5.17%) reduces the present value of those flows. However, the company has no significant debt (low ND/EBITDA implied in its financial health), which limits the impact.
News considered in the analysis
- Brown & Brown (BRO) Appoints Erik Templin To Lead North America Employee Benefits — Nombramiento de un directivo para un segmento clave; impacto moderado y positivo en la ejecución, aunque no transforma el negocio.
- Meta’s Muse Jumps to the Top of the Apple Store—and Triggers a Panic in the Stock Market — Noticia sobre Meta, sin relación directa con el negocio de corretaje de seguros de Brown & Brown.
- AJG's McMillan Insurance Acquisition Adds to Brokerage Expansion — Movimiento de un competidor (AJG); no es información nueva sobre BRO, aunque refleja consolidación en el sector.
- BRO Stock Declines 27.1% in a Year: What Should Investors Do Now? — Artículo de opinión que repite la caída del precio ya reflejada en el momentum; sin información nueva.
- WTW Stock Trading at a Discount to Industry at 14.73X: Time to Hold? — Análisis de valoración de otra empresa del sector; no aporta información específica sobre BRO.
Verdict: Hold; business quality is high, but valuation is not attractive and negative momentum suggests waiting for a better entry point.
Main risk: The main risk is valuation pressure from the high-rate environment, which affects the long-term cash flows of insurance brokers, along with the 27% decline over the past year that may indicate deteriorating market confidence.
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