Brown & Brown Inc (BRO) Stock Analysis
Verdict: BUY
Severe valuation compression vs peers creates a 'margin of safety' entry for a low-beta compounder with superior FCF generation.
Investment score: 74/100
Analysis as of
Is Brown & Brown Inc stock worth reviewing? The TradeMates thesis
BRO is currently priced as a low-growth utility despite delivering high-growth brokerage numbers and superior cash flow.
7-factor investment score
- Valuation: 85/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 90/100 (weight 15%)
- Insider Sentiment: 80/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 80/100 (weight 15%)
Brown & Brown Inc opportunities and risks
What speaks for BRO
- Aggressive M&A Integration
What speaks against BRO
- Leverage-Fueled Growth Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| BRO | 17.1x | 3.1x | 12.6x | 59.4% | 17.9% | 7.4% |
| MRSH | 20.3x | 2.9x | 15.0x | 42.4% | 14.3% | 6.2% |
| AJG | 34.5x | 3.7x | 14.2x | 66.0% | 10.8% | 3.4% |
| RYAN | 34.7x | 1.4x | 10.2x | 82.9% | 4.2% | 12.1% |
| HGTY | 30.3x | 2.6x | 29.5x | 78.0% | 2.6% | 4.4% |
| BWIN | n/a | 0.8x | 55.2x | 17.3% | -2.8% | -1.1% |
| Peer median | 30.3x | 2.6x | 15.0x | 66.0% | 4.2% | 4.4% |
Frequently asked questions about Brown & Brown Inc (BRO)
Is BRO stock a good investment?
The TradeMates model rates Brown & Brown Inc as BUY with an investment score of 74/100. BRO is currently priced as a low-growth utility despite delivering high-growth brokerage numbers and superior cash flow. This is algorithmic model output, not personal investment advice.
Is BRO stock a buy?
The TradeMates model verdict for BRO is BUY with an investment score of 74/100. Treat this as a model signal to review, not a personal buy recommendation.