Brown & Brown Inc (BRO, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $97.94, Brown & Brown Inc has enjoyed a daily gain of 5.13%, and an impressive three-month change of 17.97%. A detailed analysis, supported by the GF Score, indicates that Brown & Brown Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Brown & Brown Inc boasts a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Understanding Brown & Brown Inc's Business
Brown & Brown Inc is a prominent insurance agent and broker, specializing in property, casualty, and employee benefits. The company connects customers with insurance providers, earning revenue through commissions and direct fees. Notably, Brown & Brown Inc carries no underwriting risk. The majority of its revenue stems from its retail segment, which offers a wide array of insurance products and services to both entities and individuals. Additionally, about a quarter of its revenue comes from its national programs segment, which includes professional liability coverage among other services. Brown & Brown Inc primarily operates in the United States, with significant operations in Florida. The company's market cap stands at $27.94 billion, with sales reaching $4.32 billion and an operating margin of 28.14%.
Profitability and Growth Metrics
Brown & Brown Inc's Operating Margin has shown a steady increase over the past five years, demonstrating the company's growing efficiency in converting revenue into profit. The Gross Margin has also consistently risen, further underscoring the company's profitability. With a Predictability Rank of 3.5 stars, Brown & Brown Inc offers reliability and stability to its investors.
Brown & Brown Inc's commitment to growth is evident in its high Growth rank. The company's 3-Year Revenue Growth Rate of 16.5% outperforms 78.79% of its peers in the insurance industry. Additionally, its EBITDA has seen significant growth over the past few years, highlighting its capability to expand and scale effectively.
Conclusion
Given Brown & Brown Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
