Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin29.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin22.7%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt18.9 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$6.4B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$139M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book1.59x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$241M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income4.9%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$580M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
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.
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.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Brown & Brown, Inc. at $59.10.
The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.
At $59.10, the stock trades at a 99% premium to its Graham Number of $29.76. 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: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
51.8%▲
48.2%•
N/A
Operating Margin %
29.3%▲
21.5%•
N/A
Net Income %
22.7%▲
16.7%•
N/A
Diluted EPS
1.06▲
0.59•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$29.7B
$30.0B
N/A
Total Debt
$8.1B▲
$7.9B•
N/A
Working Capital
$139M▼
$320M•
N/A
Years to Pay Debt
18.92
29.99
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$241M▼
$424M•
N/A
Owner Earnings
$580M
$418M
N/A
CapEx % of Net Income
4.9%
7.6%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
4,577
4,623
Tax Rate For Calcs
0
0
Normalized EBITDA
748,000
536,000
Total Unusual Items
23,000
28,000
Total Unusual Items Excluding Goodwill
23,000
28,000
Net Income From Continuing Operation Net Minority Interest
426,000
264,000
Reconciled Depreciation
133,000
134,000
Reconciled Cost Of Revenue
907,000
819,000
EBITDA
771,000
564,000
EBIT
638,000
430,000
Net Interest Income
-105,000
-109,000
Interest Expense
105,000
109,000
Normalized Income
407,577
240,623
Net Income From Continuing And Discontinued Operation
426,000
264,000
Total Expenses
1,329,000
1,240,000
Diluted Average Shares
337,000
339,000
Basic Average Shares
331,000
333,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
357,000
207,000
Average Dilution Earnings
-64,000
Net Income Common Stockholders
421,000
261,000
Otherunder Preferred Stock Dividend
5,000
3,000
Net Income
426,000
264,000
Minority Interests
-1,000
-4,000
Net Income Including Noncontrolling Interests
427,000
268,000
Net Income Continuous Operations
427,000
268,000
Tax Provision
106,000
53,000
Pretax Income
533,000
321,000
Other Income Expense
87,000
90,000
Other Non Operating Income Expenses
64,000
62,000
1,000
Special Income Charges
2,000
1,000
Gain On Sale Of Business
1,000
-1,000
Restructuring And Mergern Acquisition
-1,000
-2,000
Gain On Sale Of Security
21,000
27,000
Net Non Operating Interest Income Expense
-105,000
-109,000
Interest Expense Non Operating
105,000
109,000
Operating Income
551,000
340,000
Operating Expense
422,000
421,000
Other Operating Expenses
289,000
287,000
Depreciation Amortization Depletion Income Statement
133,000
134,000
Depreciation And Amortization In Income Statement
133,000
134,000
Amortization
116,000
116,000
Amortization Of Intangibles Income Statement
116,000
116,000
Depreciation Income Statement
17,000
18,000
Gross Profit
973,000
761,000
Cost Of Revenue
907,000
819,000
Total Revenue
1,880,000
1,580,000
Operating Revenue
1,880,000
1,580,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
24,000
21,000
Ordinary Shares Number
335,000
336,000
Share Issued
359,000
357,000
Net Debt
6,819,000
6,534,000
3,149,000
Total Debt
8,060,000
7,918,000
Tangible Book Value
-7,269,000
-7,446,000
Invested Capital
20,411,000
20,160,000
Working Capital
139,000
320,000
Net Tangible Assets
-7,269,000
-7,446,000
Capital Lease Obligations
238,000
305,000
Common Stock Equity
12,589,000
12,547,000
Total Capitalization
19,173,000
19,441,000
Total Equity Gross Minority Interest
12,613,000
12,573,000
Minority Interest
24,000
26,000
Stockholders Equity
12,589,000
12,547,000
Gains Losses Not Affecting Retained Earnings
128,000
210,000
Other Equity Adjustments
128,000
210,000
Treasury Stock
1,098,000
848,000
Retained Earnings
7,358,000
6,989,000
Additional Paid In Capital
6,165,000
6,160,000
Capital Stock
36,000
36,000
Common Stock
36,000
36,000
Total Liabilities Net Minority Interest
17,087,000
17,418,000
Total Non Current Liabilities Net Minority Interest
8,771,000
9,124,000
Other Non Current Liabilities
1,050,000
1,172,000
Non Current Deferred Liabilities
899,000
815,000
Non Current Deferred Taxes Liabilities
899,000
815,000
Long Term Debt And Capital Lease Obligation
6,822,000
7,137,000
Long Term Capital Lease Obligation
238,000
243,000
Long Term Debt
6,584,000
6,894,000
Current Liabilities
8,316,000
8,294,000
Other Current Liabilities
3,961,000
4,034,000
Current Deferred Liabilities
938,000
1,180,000
Current Deferred Revenue
938,000
1,180,000
Current Debt And Capital Lease Obligation
1,238,000
781,000
Current Capital Lease Obligation
62,000
47,000
Current Debt
1,238,000
719,000
Other Current Borrowings
1,238,000
319,000
Current Notes Payable
400,000
0
Pensionand Other Post Retirement Benefit Plans Current
486,000
375,000
Current Provisions
611,000
771,000
Payables And Accrued Expenses
1,568,000
1,042,000
Current Accrued Expenses
695,000
52,000
Interest Payable
33,000
27,000
Payables
873,000
990,000
Accounts Payable
873,000
990,000
Total Assets
29,700,000
29,991,000
Total Non Current Assets
21,245,000
21,377,000
Other Non Current Assets
754,000
748,000
Investments And Advances
19,000
Goodwill And Other Intangible Assets
19,858,000
19,993,000
Other Intangible Assets
4,782,000
4,906,000
Goodwill
15,076,000
15,087,000
Net PPE
633,000
636,000
Accumulated Depreciation
-306,000
-272,000
Gross PPE
633,000
942,000
Leases
88,000
73,000
Other Properties
370,000
Machinery Furniture Equipment
448,000
382,000
Buildings And Improvements
263,000
269,000
Land And Improvements
137,000
136,000
Current Assets
8,455,000
8,614,000
Other Current Assets
456,000
484,000
Restricted Cash
2,387,000
2,471,000
Prepaid Assets
869,000
980,000
Receivables
3,740,000
3,600,000
Other Receivables
1,574,000
1,515,000
Accounts Receivable
2,166,000
2,085,000
Cash Cash Equivalents And Short Term Investments
1,003,000
1,079,000
Other Short Term Investments
10,000
Cash And Cash Equivalents
1,003,000
1,079,000
Cash Flow
2026
2025
2024
Free Cash Flow
241,000
424,000
Repurchase Of Capital Stock
-276,000
-100,000
Repayment Of Debt
-19,000
-119,000
Issuance Of Debt
225,000
0
Capital Expenditure
-21,000
-20,000
Interest Paid Supplemental Data
53,000
Income Tax Paid Supplemental Data
14,000
End Cash Position
3,658,000
3,815,000
Beginning Cash Position
3,815,000
3,724,000
Effect Of Exchange Rate Changes
-27,000
-2,000
Changes In Cash
-130,000
93,000
Financing Cash Flow
-354,000
-138,000
Cash Flow From Continuing Financing Activities
-354,000
-138,000
Net Other Financing Charges
-227,000
132,000
Proceeds From Stock Option Exercised
5,000
0
Cash Dividends Paid
-57,000
-56,000
Common Stock Dividend Paid
-57,000
-56,000
Net Common Stock Issuance
-276,000
-100,000
Common Stock Payments
-276,000
-100,000
Net Issuance Payments Of Debt
206,000
-119,000
Net Long Term Debt Issuance
206,000
-119,000
Long Term Debt Payments
-19,000
-119,000
Long Term Debt Issuance
225,000
0
Investing Cash Flow
-38,000
-213,000
Cash Flow From Continuing Investing Activities
-38,000
-213,000
Net Other Investing Changes
3,000
Net Investment Purchase And Sale
3,000
Sale Of Investment
5,000
Purchase Of Investment
-2,000
Net Business Purchase And Sale
-17,000
-196,000
Sale Of Business
0
-1,000
Purchase Of Business
-17,000
-195,000
Net PPE Purchase And Sale
-21,000
-20,000
Purchase Of PPE
-21,000
-20,000
Operating Cash Flow
262,000
444,000
Cash Flow From Continuing Operating Activities
262,000
444,000
Change In Working Capital
-332,000
105,000
Change In Other Working Capital
-116,000
162,000
Change In Other Current Liabilities
-53,000
-141,000
Change In Other Current Assets
25,000
-21,000
Change In Payables And Accrued Expense
-213,000
165,000
Change In Accrued Expense
-184,000
59,000
Change In Payable
-29,000
106,000
Change In Account Payable
-29,000
106,000
Change In Prepaid Assets
110,000
-190,000
Change In Receivables
-85,000
130,000
Changes In Account Receivables
-85,000
130,000
Other Non Cash Items
-7,000
6,000
Stock Based Compensation
26,000
17,000
Unrealized Gain Loss On Investment Securities
-64,000
-62,000
Deferred Tax
80,000
-25,000
Deferred Income Tax
80,000
-25,000
Depreciation Amortization Depletion
133,000
134,000
Depreciation And Amortization
133,000
134,000
Amortization Cash Flow
116,000
116,000
Amortization Of Intangibles
116,000
116,000
Depreciation
17,000
18,000
Operating Gains Losses
-1,000
1,000
Gain Loss On Investment Securities
-1,000
1,000
Net Income From Continuing Operations
427,000
268,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.4B▲ $1.9B+35.7%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 50.7%▲ 51.8%+1.1pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 39.8%▲ 29.3%-10.5pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 23.9%▲ 22.7%-1.2pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.9B/qtr (≈$7.5B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.02x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$241M
vs Positive
Operating Cash Flow
$262M
Latest quarter · Buffett's cash reality check
ROIC
2.0%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.6x
Net Assets: $12.6B
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
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
13.11%
High — management has strong skin in the game
Return on Equity (ROE)
3.4%
Weak — poor returns on equity
Return on Assets (ROA)
1.4%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$142M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+1.8% YoY
Debt is roughly stable
Leadership Team
Powell Brown
CEO, President & Director
Age 57
Pay: $5,682,315
1.334% of net income
Andrew Watts CPA
Executive VP, CFO & Treasurer
Age 56
Pay: $2,458,973
0.577% of net income
Stephen Patrick Hearn
President of Retail Segment, Executive VP & COO
Age 59
Pay: $2,604,694
0.611% of net income
Chris Walker
Executive VP & Chairman of Specialty Distribution Segment
Age 67
Pay: $2,508,425
0.589% of net income
Barrett Brown
Executive VP & President of Retail Segment (Leave of Absence)
Age 52
Pay: $2,804,777
0.658% of net income
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
6.47%
21,916,747
Vanguard Capital Management LLC
5.58%
18,921,240
Capital World Investors
4.87%
16,493,922
FMR, LLC
4.74%
16,050,696
Principal Financial Group, Inc.
4.61%
15,608,720
Vanguard Portfolio Management LLC
4.30%
14,586,476
State Street Corporation
4.06%
13,776,462
First Eagle Investment Management, LLC
2.60%
8,823,162
Risk Analysis
Beta (Market Risk)
0.62
Low volatility — more stable than the market
Short Interest
6.4% 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: $53.81Current: $59.10High: $111.10
Currently at 9% of 52-week range
Brown & Brown, Inc. (BRO) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $29.76. Margin of safety: 0%. Gross profit margin: 51.8%. Operating margin: 29.3%. Net margin: 22.7%. Market cap: $20.0B. Sector: Financial Services. Industry: Insurance Brokers. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.