📊 BRO Key Takeaways
Investment Thesis
Brown & Brown demonstrates strong fundamental health with robust revenue growth of 22.8% YoY, healthy net margins of 17.9%, and excellent free cash flow generation of $1.4B (23.4% FCF margin). The company maintains solid financial stability with manageable leverage (0.61x Debt/Equity), strong interest coverage of 14.1x, and operates a capital-light model with minimal capex requirements relative to cash generation.
BRO Strengths
- Strong revenue growth of 22.8% YoY indicating solid organic and acquisition-driven expansion
- Excellent free cash flow margin of 23.4% with $1.4B FCF demonstrating high-quality earnings and cash conversion
- Conservative leverage profile with 0.61x Debt/Equity ratio and 14.1x interest coverage providing financial flexibility
- Capital-light business model with capex of only $68M representing 1.2% of revenue
- Consistent profitability with 23.2% operating margin and 17.9% net margin
BRO Risks
- Diluted EPS declined 8.7% YoY despite revenue and net income growth, suggesting significant dilution from share issuance or acquisitions
- Thin liquidity position with current ratio of 1.04x leaves minimal cushion for operational disruptions
- High long-term debt of $7.6B (61% of equity) indicates acquisition-funded growth strategy with refinancing risk
- ROE of 8.4% and ROA of 3.5% are modest, suggesting capital deployment efficiency concerns despite strong cash generation
- Insider trading activity with 20 Form 4 filings in last 90 days warrants monitoring for potential sentiment concerns
Key Metrics to Watch
- Free cash flow trends and cash conversion rate to ensure quality of earnings sustainability
- Debt/Equity ratio and long-term debt levels given acquisition-driven growth strategy
- Organic revenue growth rate separated from acquisition-driven growth to assess underlying business health
- EPS growth trajectory to determine if dilution from capital structure stabilizes
- Return on invested capital (ROIC) to assess efficiency of capital deployment in acquisitions
BRO Financial Metrics
💡 AI Analyst Insight
The 23.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
BRO Profitability Ratios
BRO vs Finance Sector
How BROWN & BROWN, INC. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BRO Balance Sheet & Liquidity
BRO 5-Year Financial Trend
5-Year Trend Summary: BROWN & BROWN, INC.'s revenue has grown significantly by 93% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.05 reflects profitable operations.
BRO Growth Metrics (YoY)
BRO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.2B | $227.0M | $0.68 |
| Q2 2025 | $1.2B | $231.0M | $0.78 |
| Q1 2025 | $1.3B | $293.0M | $1.02 |
| Q3 2024 | $1.1B | $176.0M | $0.62 |
| Q2 2024 | $1.0B | $190.0M | $0.67 |
| Q1 2024 | $1.1B | $236.0M | $0.83 |
| Q3 2023 | $927.6M | $145.2M | $0.57 |
| Q2 2023 | $839.7M | $145.2M | $0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BRO Capital Allocation
BRO SEC Filings
Access official SEC EDGAR filings for BROWN & BROWN, INC. (CIK: 0000079282)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BRO
What is the AI rating for BRO?
BROWN & BROWN, INC. (BRO) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BRO's key strengths?
Strong revenue growth of 22.8% YoY indicating solid organic and acquisition-driven expansion. Excellent free cash flow margin of 23.4% with $1.4B FCF demonstrating high-quality earnings and cash conversion.
What are the risks of investing in BRO?
Diluted EPS declined 8.7% YoY despite revenue and net income growth, suggesting significant dilution from share issuance or acquisitions. Thin liquidity position with current ratio of 1.04x leaves minimal cushion for operational disruptions.
What is BRO's revenue and growth?
BROWN & BROWN, INC. reported revenue of $5.9B.
Does BRO pay dividends?
BROWN & BROWN, INC. pays dividends, with $193.0M distributed to shareholders in the trailing twelve months.
Where can I find BRO SEC filings?
Official SEC filings for BROWN & BROWN, INC. (CIK: 0000079282) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BRO's EPS?
BROWN & BROWN, INC. has a diluted EPS of $3.16.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.