NYSE · Financial Services

Brown & Brown, Inc.

BRO · Insurance Brokers

$57.50

▼ -0.13 (-0.23%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Brown & Brown, Inc. at $57.50.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 49.1%

Operating Margin 26.1%

Net Income Margin 18.3%

Fin. Health D

Years to Pay Off Debt 7.5 yrs

Working Capital vs Long-Term Debt -$6.6B

Working Capital $320M

Valuation F

Margin of Safety 0.0%

Price-to-Book 1.55x

Cash Flow A

Free Cash Flow $1.4B

CapEx % of Net Income 6.5%

Owner Earnings $1.5B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $19.5B

Enterprise Value $26.7B

P/E (TTM) 18.73

Dividend Yield 1.09%

Exchange NYSE

Key Margins

Gross Profit 49.1%

Operating Margin 26.1%

Net Margin 18.3%

Company Info

Sector Financial Services

Industry Insurance Brokers

Employees 22888

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Brown & Brown, Inc. at $57.50.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $57.50, the stock trades at a 12% premium to its Graham Number of $51.30. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Brown & Brown, Inc.

Brown & Brown, Inc. markets and sells insurance products and services in the United States, the United Kingdom, and internationally. It operates through Retail and Specialty Distribution segments. The Retail segment provides property and casualty, employee benefits insurance products, personal insurance products, specialties insurance products, risk management strategies, loss control survey and analysis, consultancy, and claims processing services. This segment also offers non-insurance services and products through automobile and recreational vehicle dealer services businesses. It serves commercial, public and quasi-public entities, professional, and individual customers. The Specialty Distribution segment comprises wholesale brokerage and specialty businesses. This segment offers professional liability and related package insurance products for dentistry, legal, eyecare, insurance, insurance, financial, physicians, real estate title professionals, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also provides public entity-related and specialty programs through a network of independent agents; and program management services for insurance carrier partners. In addition, the company's wholesale brokerage businesses underwrite and place excess and surplus commercial and personal lines insurance through independent agents and brokers. Its programs businesses operate under the Arrowhead Programs' name. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	49.1% ▲	48.9%	47.9%	49.0%
Operating Margin %	26.1% ▼	29.1%	27.5%	27.0%
Net Income %	18.3% ▼	21.1%	20.7%	18.9%
Diluted EPS	3.16 ▼	3.46	3.05	2.37

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$30.0B	$17.6B	$14.9B	$14.0B	N/A
Total Debt	$7.9B ↑	$4.1B	$4.0B	$4.2B	N/A
Working Capital	$320M ▼	$610M	$174M	$399M	N/A
Years to Pay Debt	7.51	4.09	4.62	6.22	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$1.4B ▲	$1.1B	$941M	$829M	N/A
Owner Earnings	$1.5B	$1.3B	$1.1B	$910M	N/A
CapEx % of Net Income	6.5%	8.3%	7.9%	7.7%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	26,741	31,647	43,380	13,514
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	1,923,000	1,589,000	1,362,000	1,152,000
Total Unusual Items	121,000	137,000	180,000	58,000
Total Unusual Items Excluding Goodwill	121,000	137,000	180,000	58,000
Net Income From Continuing Operation Net Minority Interest	1,054,000	993,000	871,000	672,000
Reconciled Depreciation	367,000	222,000	206,000	186,000
Reconciled Cost Of Revenue	2,935,000	2,406,000	2,187,000	1,817,000
EBITDA	2,044,000	1,726,000	1,542,000	1,210,000
EBIT	1,677,000	1,504,000	1,336,000	1,024,000
Net Interest Income	-306,000	-201,000	-190,000	-148,000
Interest Expense	306,000	201,000	190,000	148,000
Normalized Income	959,741	887,647	734,380	627,514
Net Income From Continuing And Discontinued Operation	1,054,000	993,000	871,000	672,000
Total Expenses	4,261,000	3,338,000	3,043,000	2,600,000
Diluted Average Shares	313,000	284,000	280,800	278,658
Basic Average Shares	310,000	282,000	279,600	277,521
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	989,000	981,000	858,000	659,000
Average Dilution Earnings	-54,000	0	0
Net Income Common Stockholders	1,043,000	981,000	858,000	659,000
Otherunder Preferred Stock Dividend	11,000	12,000	13,000	13,000
Net Income	1,054,000	993,000	871,000	672,000
Minority Interests	-13,000	-9,000	0	0
Net Income Including Noncontrolling Interests	1,067,000	1,002,000	871,000	672,000
Net Income Continuous Operations	1,067,000	1,002,000	871,000	672,000
Tax Provision	304,000	301,000	275,000	204,000
Pretax Income	1,371,000	1,303,000	1,146,000	876,000
Other Income Expense	175,000	137,000	180,000	61,000
Other Non Operating Income Expenses	54,000	7,000	5,300	3,000
Special Income Charges	-18,000	37,000	122,000	51,000
Gain On Sale Of Business	-2,000	31,000	143,000	5,000
Restructuring And Mergern Acquisition	16,000	-6,000	21,000	-46,000
Gain On Sale Of Security	139,000	100,000	58,000	7,000
Net Non Operating Interest Income Expense	-306,000	-201,000	-190,000	-148,000
Interest Expense Non Operating	306,000	201,000	190,000	148,000
Operating Income	1,502,000	1,367,000	1,156,000	963,000
Operating Expense	1,326,000	932,000	856,000	783,000
Other Operating Expenses	959,000	710,000	650,000	597,000
Depreciation Amortization Depletion Income Statement	367,000	222,000	206,000	186,000
Depreciation And Amortization In Income Statement	367,000	222,000	206,000	186,000
Amortization	312,000	178,000	166,000	147,000
Amortization Of Intangibles Income Statement	312,000	178,000	166,000	147,000
Depreciation Income Statement	55,000	44,000	40,000	39,000
Gross Profit	2,828,000	2,299,000	2,012,000	1,746,000
Cost Of Revenue	2,935,000	2,406,000	2,187,000	1,817,000
Total Revenue	5,763,000	4,705,000	4,199,000	3,563,000
Operating Revenue	5,763,000	4,705,000	4,199,000	3,563,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	21,000	20,000	19,700	19,700
Ordinary Shares Number	336,000	285,958	284,600	283,200
Share Issued	357,000	305,958	304,300	302,900
Net Debt	6,534,000	3,149,000	3,096,000	3,292,100
Total Debt	7,918,000	4,060,000	4,020,000	4,183,000
Tangible Book Value	-7,446,000	-3,364,000	-3,383,000	-3,662,800
Invested Capital	20,160,000	10,244,000	9,375,000	8,548,700
Working Capital	320,000	610,000	174,000	399,400
Net Tangible Assets	-7,446,000	-3,364,000	-3,383,000	-3,662,800
Capital Lease Obligations	305,000	236,000	224,000	240,900
Common Stock Equity	12,547,000	6,420,000	5,579,000	4,606,600
Total Capitalization	19,441,000	10,019,000	8,806,000	8,298,100
Total Equity Gross Minority Interest	12,573,000	6,437,000	5,579,000	4,606,600
Minority Interest	26,000	17,000	0
Stockholders Equity	12,547,000	6,420,000	5,579,000	4,606,600
Gains Losses Not Affecting Retained Earnings	210,000	-109,000	-19,000	-148,400
Other Equity Adjustments	210,000	-109,000	-19,000	-148,400
Treasury Stock	848,000	748,000	748,000	748,000
Retained Earnings	6,989,000	6,128,000	5,289,000	4,553,000
Additional Paid In Capital	6,160,000	1,118,000	1,027,000	919,700
Capital Stock	36,000	31,000	30,000	30,300
Common Stock	36,000	31,000	30,000	30,300
Total Liabilities Net Minority Interest	17,418,000	11,175,000	9,304,000	9,366,900
Total Non Current Liabilities Net Minority Interest	9,124,000	4,861,000	4,348,000	4,770,300
Other Non Current Liabilities	1,172,000	362,000	326,000	298,900
Non Current Deferred Liabilities	815,000	711,000	616,000	584,000
Non Current Deferred Taxes Liabilities	815,000	711,000	616,000	584,000
Long Term Debt And Capital Lease Obligation	7,137,000	3,788,000	3,406,000	3,887,400
Long Term Capital Lease Obligation	243,000	189,000	179,000	195,900
Long Term Debt	6,894,000	3,599,000	3,227,000	3,691,500
Current Liabilities	8,294,000	6,314,000	4,956,000	4,596,600
Other Current Liabilities	4,034,000	2,975,000	2,773,000	2,294,800
Current Deferred Liabilities	1,180,000	657,000	540,000	492,200
Current Deferred Revenue	1,180,000	657,000	540,000	492,200
Current Debt And Capital Lease Obligation	781,000	272,000	614,000	295,600
Current Capital Lease Obligation	62,000	47,000	45,000	45,000
Current Debt	719,000	225,000	569,000	250,600
Other Current Borrowings	319,000	225,000	569,000	250,600
Current Notes Payable	400,000	0
Pensionand Other Post Retirement Benefit Plans Current	486,000	375,000	332,000	299,100
Current Provisions	771,000	1,616,000	184,000	880,300
Payables And Accrued Expenses	1,042,000	419,000	513,000	334,600
Current Accrued Expenses	52,000	46,000	54,000	48,100
Interest Payable	33,000	27,000	33,000	33,200
Payables	990,000	373,000	459,000	286,500
Other Payable				2,264,600	1,470,700
Accounts Payable	990,000	373,000	459,000	286,500
Total Assets	29,991,000	17,612,000	14,883,000	13,973,500
Total Non Current Assets	21,377,000	10,688,000	9,753,000	8,977,500
Other Non Current Assets	748,000	385,000	301,000	230,900
Investments And Advances		19,000	21,000	22,400	31,000
Goodwill And Other Intangible Assets	19,993,000	9,784,000	8,962,000	8,269,400
Other Intangible Assets	4,906,000	1,814,000	1,621,000	1,595,200
Goodwill	15,087,000	7,970,000	7,341,000	6,674,200
Net PPE	636,000	519,000	469,000	454,800
Accumulated Depreciation	-306,000	-272,000	-254,000	-237,000
Gross PPE	942,000	791,000	723,000	691,800
Leases	88,000	73,000	62,000	61,300
Other Properties			198,800	214,900	197,000
Machinery Furniture Equipment	448,000	382,000	345,000	307,200
Buildings And Improvements	269,000	200,000	199,000	214,900
Land And Improvements	137,000	136,000	117,000	108,400
Current Assets	8,614,000	6,924,000	5,130,000	4,996,000
Other Current Assets	484,000	364,000	314,000	202,300
Restricted Cash	2,471,000	1,827,000	1,603,000	1,383,200
Prepaid Assets	980,000	520,000	462,000	393,200
Receivables	3,600,000	3,538,000	2,040,000	2,355,300
Other Receivables	1,515,000	1,116,000	1,125,000	881,400
Accounts Receivable	2,085,000	2,422,000	915,000	1,473,900
Cash Cash Equivalents And Short Term Investments	1,079,000	675,000	711,000	662,000
Other Short Term Investments		10,000	11,000	12,000	12,900
Cash And Cash Equivalents	1,079,000	675,000	700,000	650,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	1,382,000	1,092,000	941,000	829,000
Repurchase Of Capital Stock	-142,000	-55,000	-40,000	-123,000
Repayment Of Debt	-825,000	-1,069,000	-571,000	-411,000
Issuance Of Debt	4,642,000	1,099,000	420,000	2,350,000
Issuance Of Capital Stock	4,315,000	0	0
Capital Expenditure	-68,000	-82,000	-69,000	-52,000
Interest Paid Supplemental Data	284,000	195,000	186,000	120,000
Income Tax Paid Supplemental Data	371,000	302,000	218,000	122,000
End Cash Position	3,815,000	2,502,000	2,303,000	2,033,000
Beginning Cash Position	2,502,000	2,303,000	2,033,000	1,470,000
Effect Of Exchange Rate Changes	64,000	-13,000	34,000	-131,000
Changes In Cash	1,249,000	212,000	236,000	694,000
Financing Cash Flow	7,713,000	-64,000	-187,000	1,726,000
Cash Flow From Continuing Financing Activities	7,713,000	-64,000	-187,000	1,726,000
Net Other Financing Charges	-132,000	71,000	99,000	-8,000
Proceeds From Stock Option Exercised	48,000	44,000	40,000	38,000
Cash Dividends Paid	-193,000	-154,000	-135,000	-120,000
Common Stock Dividend Paid	-193,000	-154,000	-135,000	-120,000
Net Common Stock Issuance	4,173,000	-55,000	-40,000	-123,000
Common Stock Payments	-142,000	-55,000	-40,000	-123,000
Common Stock Issuance	4,315,000	0	0
Net Issuance Payments Of Debt	3,817,000	30,000	-151,000	1,939,000
Net Short Term Debt Issuance			100,000	0	0
Short Term Debt Payments			-320,000	-350,000	0
Short Term Debt Issuance			420,000	350,000	0
Net Long Term Debt Issuance	3,817,000	30,000	-151,000	1,939,000
Long Term Debt Payments	-825,000	-1,069,000	-571,000	-411,000
Long Term Debt Issuance	4,642,000	1,099,000	420,000	2,350,000
Investing Cash Flow	-7,914,000	-898,000	-587,000	-1,913,000
Cash Flow From Continuing Investing Activities	-7,914,000	-898,000	-587,000	-1,913,000
Net Other Investing Changes	-1,000	4,000	6,000
Net Investment Purchase And Sale		4,000	6,000	7,000	-1,600
Sale Of Investment		11,000	13,200	7,000	10,800
Purchase Of Investment		-7,000	-7,200	0	-12,400
Net Business Purchase And Sale	-7,845,000	-820,000	-524,000	-1,868,000
Sale Of Business	9,000	70,000	107,000	60,000
Purchase Of Business	-7,854,000	-890,000	-631,000	-1,928,000
Net PPE Purchase And Sale	-68,000	-82,000	-69,000	-52,000
Sale Of PPE			106,600	60,400	16,600
Purchase Of PPE	-68,000	-82,000	-69,000	-52,000
Operating Cash Flow	1,450,000	1,174,000	1,010,000	881,000
Cash Flow From Continuing Operating Activities	1,450,000	1,174,000	1,010,000	881,000
Change In Working Capital	-47,000	-105,000	-25,000	-16,000
Change In Other Working Capital	177,000	115,000	50,000	20,000
Change In Other Current Liabilities	-1,288,000	1,444,000	-793,000	651,000
Change In Other Current Assets	-44,000	-98,000	-117,000	-18,000
Change In Payables And Accrued Expense	29,000	-12,000	303,000	161,000
Change In Accrued Expense	18,000	35,000	43,000	37,000
Change In Payable	11,000	-47,000	260,000	124,000
Change In Account Payable	11,000	-47,000	260,000	124,000
Change In Prepaid Assets	-182,000	-58,000	-68,000	-1,000
Change In Receivables	1,261,000	-1,496,000	600,000	-829,000
Changes In Account Receivables	1,261,000	-1,496,000	600,000	-829,000
Other Non Cash Items	28,000	-30,000	-3,000	-66,000
Stock Based Compensation	93,000	101,000	89,000	66,000
Unrealized Gain Loss On Investment Securities	-54,000	0	0
Amortization Of Securities			3,500	200	100
Deferred Tax	-7,000	13,000	12,000	43,000
Deferred Income Tax	-7,000	13,000	12,000	43,000
Depreciation Amortization Depletion	367,000	222,000	206,000	186,000
Depreciation And Amortization	367,000	222,000	206,000	186,000
Amortization Cash Flow	312,000	178,000	166,000	147,000
Amortization Of Intangibles	312,000	178,000	166,000	147,000
Depreciation	55,000	44,000	40,000	39,000
Operating Gains Losses	3,000	-29,000	-140,000	-4,000
Gain Loss On Investment Securities	3,000	-29,000	-140,000	-4,000
Net Foreign Currency Exchange Gain Loss			200	-600	500
Gain Loss On Sale Of Business			-140,300	-3,600	-7,100
Net Income From Continuing Operations	1,067,000	1,002,000	871,000	672,000

These metrics estimate what Brown & Brown, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$51.30

Margin of Safety

Market Cap ÷ Company Value

1.55

P/B Ratio

1.55

Warren's Owner Earnings

$1.5B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$5.8B

vs > $1.5B revenue

❌ Strong Financial Condition

1.04x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.09%

vs Uninterrupted dividends

✅ Earnings Growth

+33.3% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

18.7x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

1.55x P/B (P/E×P/B: 29.1)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-25.97

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$49.24

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	6.5%	8.3%	7.9%	7.7%	N/A
Repurchase of Capital Stock	-$142M	-$55M	-$40M	-$123M	N/A
Free Cash Flow	$1.4B ▲	$1.1B ▲	$941M ▲	$829M •	N/A •
Warren's Owner Earnings	$1.5B	$1.3B	$1.1B	$910M	N/A

Peers & Industry

No auto-detected peers for Insurance Brokers. You can manually compare BRO against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

13.10%

High — management has strong skin in the game

Return on Equity (ROE)

8.4%

Adequate — returns are moderate

Return on Assets (ROA)

3.5%

Fair — average asset utilization

Share Buybacks (Latest Year)

$142M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+95.0% YoY

Debt is growing — management is leveraging up

Leadership Team

Powell Brown

CEO, President & Director

Age 57

Pay: $5,682,315

0.539% of net income

Andrew Watts CPA

Executive VP, CFO & Treasurer

Age 56

Pay: $2,458,973

0.233% of net income

Stephen Patrick Hearn

President of Retail Segment, Executive VP & COO

Age 59

Pay: $2,604,694

0.247% of net income

Chris Walker

Executive VP & Chairman of Specialty Distribution Segment

Age 67

Pay: $2,508,425

0.238% of net income

Barrett Brown

Executive VP & President of Retail Segment (Leave of Absence)

Age 52

Pay: $2,804,777

0.266% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	11.10%	37,634,847
Blackrock Inc.	6.42%	21,770,945
Capital World Investors	5.28%	17,886,395
Principal Financial Group, Inc.	4.53%	15,362,548
State Street Corporation	3.95%	13,403,814
FMR, LLC	3.11%	10,536,563
Select Equity Group LP	2.78%	9,434,802
Geode Capital Management, LLC	2.35%	7,952,957

Risk Analysis

Beta (Market Risk)

0.66

Low volatility — more stable than the market

Short Interest

7.3% of float

Moderate short interest

Debt-to-Equity

0.64x

Conservative balance sheet — low financial risk

Current Ratio

1.02x

Adequate liquidity

52-Week Price Range

Low: $57.19 Current: $57.50 High: $113.84

Currently at 1% of 52-week range

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