📊 BRO Key Takeaways
Is Brown & Brown, Inc.. (BRO) a Good Investment?
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.
Brown & Brown shows strong fundamental quality with double-digit revenue growth, high operating and free cash flow margins, and solid interest coverage. The business converts revenue into cash efficiently and maintains manageable leverage, but the weak net income growth and declining diluted EPS suggest acquisition integration, financing, or share-count-related pressure that tempers an otherwise strong profile.
Why Buy Brown & Brown, Inc.. Stock? BRO 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
- 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
- Revenue growth of 22.8% with operating margin of 23.2% indicates strong scale and resilient core profitability
- Free cash flow of $1.38B and a 23.4% FCF margin show excellent cash generation and low capital intensity
- Debt appears manageable with debt-to-equity of 0.61x and interest coverage of 14.1x
BRO Stock Risks: Brown & Brown, Inc.. Investment 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
- Net income grew only 1.1% while diluted EPS fell 8.7%, pointing to weaker earnings quality versus top-line growth
- Liquidity is adequate but not strong, with current and quick ratios both at 1.04x
- ROE of 8.4% and ROA of 3.5% are only moderate relative to the company’s scale and asset base
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
- Diluted EPS growth relative to revenue growth
- Free cash flow conversion and debt reduction trend
Brown & Brown, Inc.. (BRO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
BRO Profit Margin, ROE & Profitability Analysis
BRO vs Finance Sector: How Brown & Brown, Inc.. Compares
How Brown & Brown, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Brown & Brown, Inc.. Stock Overvalued? BRO Valuation Analysis 2026
Based on fundamental analysis, Brown & Brown, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Brown & Brown, Inc.. Balance Sheet: BRO Debt, Cash & Liquidity
BRO Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
BRO Quarterly Earnings & 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.
Brown & Brown, Inc.. Dividends, Buybacks & Capital Allocation
BRO SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BRO's key strengths?
Claude: 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. ChatGPT: Revenue growth of 22.8% with operating margin of 23.2% indicates strong scale and resilient core profitability. Free cash flow of $1.38B and a 23.4% FCF margin show excellent cash generation and low capital intensity.
What are the risks of investing in BRO?
Claude: 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. ChatGPT: Net income grew only 1.1% while diluted EPS fell 8.7%, pointing to weaker earnings quality versus top-line growth. Liquidity is adequate but not strong, with current and quick ratios both at 1.04x.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BRO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Brown & Brown, Inc.. has a BUY rating with 81% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BRO stock overvalued or undervalued?
Valuation metrics for BRO: ROE of 8.4% (sector avg: 12%), net margin of 17.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy BRO stock in 2026?
Our dual AI analysis gives Brown & Brown, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BRO's free cash flow?
Brown & Brown, Inc..'s operating cash flow is $1.5B, with capital expenditures of $68.0M. FCF margin is 23.4%.
How does BRO compare to other Finance stocks?
Vs Finance sector averages: Net margin 17.9% (avg: 25%), ROE 8.4% (avg: 12%), current ratio 1.04 (avg: 1.2).