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Brown & Brown, Inc is an insurance brokers business based in the US. Brown-and-Brown shares (BRO) are listed on the NYSE and all prices are listed in US Dollars. Brown-and-Brown employs 10,083 staff and has a trailing 12-month revenue of around USD$2.5 billion.
Since the stock market crash in March caused by coronavirus, Brown-and-Brown's share price has had significant negative movement.
Its last market close was USD$47.66, which is 1.45% down on its pre-crash value of USD$48.36 and 55.24% up on the lowest point reached during the March crash when the shares fell as low as USD$30.7.
If you had bought USD$1,000 worth of Brown-and-Brown shares at the start of February 2020, those shares would have been worth USD$694.30 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,045.18.
|Latest market close||USD$47.66|
|52-week range||USD$30.7 - USD$48.69|
|50-day moving average||USD$45.5774|
|200-day moving average||USD$42.0983|
|Wall St. target price||USD$46.67|
|Dividend yield||USD$0.34 (0.72%)|
|Earnings per share (TTM)||USD$1.55|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-11-18)||1.43%|
|1 month (2020-10-23)||2.01%|
|3 months (2020-08-25)||3.59%|
|6 months (2020-05-22)||24.05%|
|1 year (2019-11-25)||25.55%|
|2 years (2018-11-23)||67.46%|
|3 years (2017-11-24)||-4.78%|
|5 years (2015-11-25)||47.14%|
Valuing Brown-and-Brown stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Brown-and-Brown's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Brown-and-Brown's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 31x. In other words, Brown-and-Brown shares trade at around 31x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Brown-and-Brown's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.41. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Brown-and-Brown's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Brown-and-Brown's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$810.7 million.
The EBITDA is a measure of a Brown-and-Brown's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$2.5 billion|
|Operating margin TTM||27.34%|
|Gross profit TTM||USD$1.1 billion|
|Return on assets TTM||5.54%|
|Return on equity TTM||13.05%|
|Market capitalisation||USD$13.1 billion|
TTM: trailing 12 months
There are currently 2.6 million Brown-and-Brown shares held short by investors – that's known as Brown-and-Brown's "short interest". This figure is 21% down from 3.3 million last month.
There are a few different ways that this level of interest in shorting Brown-and-Brown shares can be evaluated.
Brown-and-Brown's "short interest ratio" (SIR) is the quantity of Brown-and-Brown shares currently shorted divided by the average quantity of Brown-and-Brown shares traded daily (recently around 1.1 million). Brown-and-Brown's SIR currently stands at 2.47. In other words for every 100,000 Brown-and-Brown shares traded daily on the market, roughly 2470 shares are currently held short.
However Brown-and-Brown's short interest can also be evaluated against the total number of Brown-and-Brown shares, or, against the total number of tradable Brown-and-Brown shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Brown-and-Brown's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Brown-and-Brown shares in existence, roughly 10 shares are currently held short) or 0.0127% of the tradable shares (for every 100,000 tradable Brown-and-Brown shares, roughly 13 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Brown-and-Brown.
Find out more about how you can short Brown-and-Brown stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Brown-and-Brown.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 25.06
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Brown-and-Brown's overall score of 25.06 (as at 10/01/2020) is pretty good – landing it in it in the 39th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Brown-and-Brown is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 0.82/100
Brown-and-Brown's environmental score of 0.82 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Brown-and-Brown is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 10.66/100
Brown-and-Brown's social score of 10.66 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Brown-and-Brown is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 16.22/100
Brown-and-Brown's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Brown-and-Brown is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 1/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Brown-and-Brown scored a 1 out of 5 for controversy – the highest score possible, reflecting that Brown-and-Brown has managed to keep its nose clean.
|Total ESG score||25.06|
|Total ESG percentile||38.94|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||1|
Dividend payout ratio: 22.37% of net profits
Recently Brown-and-Brown has paid out, on average, around 22.37% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.72% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Brown-and-Brown shareholders could enjoy a 0.72% return on their shares, in the form of dividend payments. In Brown-and-Brown's case, that would currently equate to about $0.34 per share.
While Brown-and-Brown's payout ratio might seem low, this can signify that Brown-and-Brown is investing more in its future growth.
Brown-and-Brown's most recent dividend payout was on 12 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 4 August 2020 (the "ex-dividend date").
Brown-and-Brown's shares were split on a 2:1 basis on 29 March 2018. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Brown-and-Brown shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Brown-and-Brown shares which in turn could have impacted Brown-and-Brown's share price.
Over the last 12 months, Brown-and-Brown's shares have ranged in value from as little as $30.7 up to $48.69. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Brown-and-Brown's is 0.6784. This would suggest that Brown-and-Brown's shares are less volatile than average (for this exchange).
Brown & Brown, Inc. markets and sells insurance products and services in the United States, England, Canada, Bermuda, and the Cayman Islands. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail segment offers commercial packages, group medical, workers' compensation, property risk, and general liability insurance products; and group and individual life, accident, disability, health, hospitalization, medical, dental, and other ancillary insurance products, as well as risk management, loss control survey and analysis, consultancy, and claims processing services. It serves commercial, public and quasi-public entities, professional, and individual customers. The National Programs segment offers professional liability and related package insurance products for dentists, oral surgeons, hygienists, lawyers, optometrists, opticians, ophthalmologists, insurance agents, financial advisors, registered representatives, securities broker-dealers, benefit administrators, real estate title agents, and escrow agents, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also offers outsourced product development, marketing, underwriting, actuarial, compliance, and claims and other administrative services to insurance carrier partners; and commercial and public entity-related programs, and flood insurance products. It serves through independent agents. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance through independent agents and brokers. The Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. The company was founded in 1939 and is headquartered in Daytona Beach, Florida.
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