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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.45
BRO's Cash to Debt is ranked lower than
60% of the 379 Companies
in the Global Insurance Brokers industry.

( Industry Median: 101.40 vs. BRO: 0.45 )
BRO' s 10-Year Cash to Debt Range
Min: 0.16   Max: 6
Current: 0.45

0.16
6
Equity to Asset 0.55
BRO's Equity to Asset is ranked higher than
74% of the 369 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.37 vs. BRO: 0.55 )
BRO' s 10-Year Equity to Asset Range
Min: 0.31   Max: 0.63
Current: 0.55

0.31
0.63
Interest Coverage 21.75
BRO's Interest Coverage is ranked higher than
69% of the 319 Companies
in the Global Insurance Brokers industry.

( Industry Median: 13.78 vs. BRO: 21.75 )
BRO' s 10-Year Interest Coverage Range
Min: 4.65   Max: 54.15
Current: 21.75

4.65
54.15
F-Score: 4
Z-Score: 2.85
M-Score: -2.48
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 26.23
BRO's Operating margin (%) is ranked higher than
75% of the 391 Companies
in the Global Insurance Brokers industry.

( Industry Median: 17.69 vs. BRO: 26.23 )
BRO' s 10-Year Operating margin (%) Range
Min: 20.85   Max: 32.68
Current: 26.23

20.85
32.68
Net-margin (%) 15.93
BRO's Net-margin (%) is ranked higher than
72% of the 395 Companies
in the Global Insurance Brokers industry.

( Industry Median: 11.99 vs. BRO: 15.93 )
BRO' s 10-Year Net-margin (%) Range
Min: 12.36   Max: 20.02
Current: 15.93

12.36
20.02
ROE (%) 10.82
BRO's ROE (%) is ranked higher than
85% of the 391 Companies
in the Global Insurance Brokers industry.

( Industry Median: 5.64 vs. BRO: 10.82 )
BRO' s 10-Year ROE (%) Range
Min: 9.98   Max: 30.76
Current: 10.82

9.98
30.76
ROA (%) 5.95
BRO's ROA (%) is ranked higher than
88% of the 395 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.58 vs. BRO: 5.95 )
BRO' s 10-Year ROA (%) Range
Min: 5.88   Max: 12.74
Current: 5.95

5.88
12.74
ROC (Joel Greenblatt) (%) 478.52
BRO's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 380 Companies
in the Global Insurance Brokers industry.

( Industry Median: 103.16 vs. BRO: 478.52 )
BRO' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 224.06   Max: 634.01
Current: 478.52

224.06
634.01
Revenue Growth (%) 11.00
BRO's Revenue Growth (%) is ranked higher than
89% of the 297 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.60 vs. BRO: 11.00 )
BRO' s 10-Year Revenue Growth (%) Range
Min: -41.2   Max: 120.6
Current: 11

-41.2
120.6
EBITDA Growth (%) 9.20
BRO's EBITDA Growth (%) is ranked higher than
84% of the 255 Companies
in the Global Insurance Brokers industry.

( Industry Median: -4.20 vs. BRO: 9.20 )
BRO' s 10-Year EBITDA Growth (%) Range
Min: -42.4   Max: 112.9
Current: 9.2

-42.4
112.9
EPS Growth (%) 9.40
BRO's EPS Growth (%) is ranked higher than
80% of the 253 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.70 vs. BRO: 9.40 )
BRO' s 10-Year EPS Growth (%) Range
Min: -42.8   Max: 120.3
Current: 9.4

-42.8
120.3
» BRO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

BRO Guru Trades in Q1 2013

Ruane Cunniff 2,800,494 sh (+0.22%)
Tom Gayner 365,628 sh (unchged)
Columbia Wanger 1,609,000 sh (unchged)
Wallace Weitz 310,000 sh (unchged)
Westport Asset Management 778,261 sh (unchged)
Tweedy Browne 1,324,469 sh (-0.44%)
Meridian Funds 2,230,000 sh (-12%)
Chuck Royce 777,200 sh (-12.4%)
Steven Cohen 14,865 sh (-90.23%)
» More
Q2 2013

BRO Guru Trades in Q2 2013

Jim Simons 128,700 sh (New)
Joel Greenblatt 12,752 sh (New)
Meridian Funds 2,306,400 sh (+3.43%)
Columbia Wanger 1,609,000 sh (unchged)
Westport Asset Management 778,261 sh (unchged)
Chuck Royce 777,200 sh (unchged)
Tom Gayner 365,628 sh (unchged)
Wallace Weitz 310,000 sh (unchged)
Ruane Cunniff 2,798,246 sh (-0.08%)
Steven Cohen 8,555 sh (-42.45%)
Tweedy Browne 13,925 sh (-98.95%)
» More
Q3 2013

BRO Guru Trades in Q3 2013

Murray Stahl 10,320 sh (New)
Jim Simons 812,400 sh (+531.24%)
Joel Greenblatt 67,356 sh (+428.2%)
Steven Cohen 37,832 sh (+342.22%)
Wallace Weitz 360,497 sh (+16.29%)
Columbia Wanger 1,655,000 sh (+2.86%)
Tom Gayner 365,628 sh (unchged)
Tweedy Browne 13,925 sh (unchged)
Ruane Cunniff 2,793,771 sh (-0.16%)
Westport Asset Management 758,261 sh (-2.57%)
Chuck Royce 703,200 sh (-9.52%)
» More
Q4 2013

BRO Guru Trades in Q4 2013

Paul Tudor Jones 14,515 sh (New)
Joel Greenblatt 131,778 sh (+95.64%)
Murray Stahl 17,337 sh (+67.99%)
Wallace Weitz 526,718 sh (+46.11%)
Jim Simons 888,400 sh (+9.35%)
Columbia Wanger 1,805,000 sh (+9.06%)
Tweedy Browne 13,925 sh (unchged)
Tom Gayner 365,628 sh (unchged)
Chuck Royce 700,600 sh (-0.37%)
Ruane Cunniff 2,700,118 sh (-3.35%)
Steven Cohen 27,858 sh (-26.36%)
Westport Asset Management 548,961 sh (-27.6%)
» More
» Details

Insider Trades

Latest Guru Trades with BRO

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Wallace Weitz 2013-12-31 Add 46.11%0.17%$29.69 - $33.39 $ 29.52-7%526718
Joel Greenblatt 2013-12-31 Add 95.64%0.05%$29.69 - $33.39 $ 29.52-7%131778
Joel Greenblatt 2013-09-30 Add 428.2%0.06%$30.83 - $34.12 $ 29.52-10%67356
Tweedy Browne 2013-06-30 Reduce -98.95%1.09%$30.28 - $33.14 $ 29.52-7%13925
Joel Greenblatt 2013-06-30 New Buy0.02%$30.28 - $33.14 $ 29.52-7%12752
Wallace Weitz 2012-12-31 Add 34.78%0.09%$25.15 - $27.01 $ 29.5213%310000
Prem Watsa 2012-12-31 Sold Out 0.02%$25.15 - $27.01 $ 29.5213%0
Meridian Funds 2012-09-30 Add 11.11%0.26%$24.83 - $27.61 $ 29.5213%2788015
Meridian Funds 2012-06-30 Add 14.66%0.29%$23.47 - $27.11 $ 29.5215%2509315
Joel Greenblatt 2012-06-30 Sold Out 0.12%$23.47 - $27.11 $ 29.5215%0
Meridian Funds 2012-03-31 Add 87.8%0.7%$22.29 - $24.87 $ 29.5235%2188427
Tweedy Browne 2011-12-31 Reduce -27.15%0.35%$17 - $22.82 $ 29.5241%1353561
Wallace Weitz 2011-12-31 Reduce -61.54%0.33%$17 - $22.82 $ 29.5241%240380
Joel Greenblatt 2011-12-31 Add 32.53%0.04%$17 - $22.82 $ 29.5241%53644
Meridian Funds 2011-09-30 Reduce -49.45%0.86%$17.4 - $26.06 $ 29.5241%1166527
Wallace Weitz 2011-09-30 Add 42.36%0.16%$17.4 - $26.06 $ 29.5241%625037
Joel Greenblatt 2011-09-30 Add 263.4%0.09%$17.4 - $26.06 $ 29.5241%40476
Ron Baron 2011-09-30 Sold Out 0.0885%$17.4 - $26.06 $ 29.5241%0
Joel Greenblatt 2011-06-30 Add 24.94%0.01%$25.01 - $26.78 $ 29.5215%11138
Meridian Funds 2011-03-31 Add 16.45%0.27%$23.87 - $26.51 $ 29.5218%2433767
Joel Greenblatt 2011-03-31 New Buy0.07%$23.87 - $26.51 $ 29.5218%8915
Ron Baron 2011-03-31 Reduce -35.35%0.05%$23.87 - $26.51 $ 29.5218%716414
Mario Gabelli 2011-03-31 Sold Out $23.87 - $26.51 $ 29.5218%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Brown & Brown, Inc.

Lountzis Asset Management Comments on Brown & Brown - Mar 21, 2014

BROWN & BROWN (BRO) is a leading insurance broker with an outstanding corporate culture that helps generate the highest margins in its industry. Net income for the 4th quarter of 2013 was $47.2 million, or $0.32 per share, which was a 10% increase from 2012. Total 2013 revenue was $1.4 billion, a 13.6% increase from 2012, while earnings rose 18% to $1.48 per share.



After several years showing sparse growth, Brown & Brown has begun to grow organically while continuing to maintain the highest profit margins in the industry. In fact, during the 1997 to 2007 insurance cycle, Brown & Brown grew EPS at 20% per year but, since that 2007 earnings peak, organic growth slowed significantly. In fact, 2012 and 2013’s earnings growth was the best in several years and we believe earnings growth should continue in the 10-15% range over the next couple of years; helped primarily by acquisitions.



From Lountzis Asset Management 2013 Annual Letter



Check out latest stock trades

Top Ranked Articles about Brown & Brown, Inc.

Lountzis Asset Management Comments on Brown & Brown
BROWN & BROWN (BRO) is a leading insurance broker with an outstanding corporate culture that helps generate the highest margins in its industry. Net income for the 4th quarter of 2013 was $47.2 million, or $0.32 per share, which was a 10% increase from 2012. Total 2013 revenue was $1.4 billion, a 13.6% increase from 2012, while earnings rose 18% to $1.48 per share. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 19.80
BRO's P/E(ttm) is ranked higher than
64% of the 322 Companies
in the Global Insurance Brokers industry.

( Industry Median: 20.30 vs. BRO: 19.80 )
BRO' s 10-Year P/E(ttm) Range
Min: 12.89   Max: 31.07
Current: 19.8

12.89
31.07
P/B 2.10
BRO's P/B is ranked lower than
54% of the 357 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.36 vs. BRO: 2.10 )
BRO' s 10-Year P/B Range
Min: 1.56   Max: 6.06
Current: 2.1

1.56
6.06
P/S 3.09
BRO's P/S is ranked higher than
55% of the 393 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.01 vs. BRO: 3.09 )
BRO' s 10-Year P/S Range
Min: 2.24   Max: 6.06
Current: 3.09

2.24
6.06
PFCF 11.10
BRO's PFCF is ranked higher than
61% of the 207 Companies
in the Global Insurance Brokers industry.

( Industry Median: 11.72 vs. BRO: 11.10 )
BRO' s 10-Year PFCF Range
Min: 5.87   Max: 32.42
Current: 11.1

5.87
32.42
EV-to-EBIT 13.20
BRO's EV-to-EBIT is ranked higher than
70% of the 297 Companies
in the Global Insurance Brokers industry.

( Industry Median: 15.72 vs. BRO: 13.20 )
BRO' s 10-Year EV-to-EBIT Range
Min: 8.7   Max: 20.3
Current: 13.2

8.7
20.3
PEG 2.60
BRO's PEG is ranked lower than
53% of the 120 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.60 vs. BRO: 2.60 )
BRO' s 10-Year PEG Range
Min: 0.67   Max: 58.08
Current: 2.6

0.67
58.08
Shiller P/E 23.00
BRO's Shiller P/E is ranked higher than
59% of the 196 Companies
in the Global Insurance Brokers industry.

( Industry Median: 17.84 vs. BRO: 23.00 )
BRO' s 10-Year Shiller P/E Range
Min: 13.53   Max: 41.45
Current: 23

13.53
41.45

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.29
BRO's Dividend Yield is ranked lower than
77% of the 299 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.50 vs. BRO: 1.29 )
BRO' s 10-Year Dividend Yield Range
Min: 0.51   Max: 1.82
Current: 1.29

0.51
1.82
Dividend Payout 0.24
BRO's Dividend Payout is ranked higher than
81% of the 263 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.43 vs. BRO: 0.24 )
BRO' s 10-Year Dividend Payout Range
Min: 0.03   Max: 0.29
Current: 0.24

0.03
0.29
Dividend growth (3y) 5.70
BRO's Dividend growth (3y) is ranked higher than
79% of the 169 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.50 vs. BRO: 5.70 )
BRO' s 10-Year Dividend growth (3y) Range
Min: 4.4   Max: 21.9
Current: 5.7

4.4
21.9
Yield on cost (5-Year) 1.67
BRO's Yield on cost (5-Year) is ranked lower than
68% of the 305 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.53 vs. BRO: 1.67 )
BRO' s 10-Year Yield on cost (5-Year) Range
Min: 0.65   Max: 2.33
Current: 1.67

0.65
2.33
Share Buyback Rate -0.80
BRO's Share Buyback Rate is ranked higher than
71% of the 285 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.10 vs. BRO: -0.80 )
BRO' s 10-Year Share Buyback Rate Range
Min: 49.2   Max: -108.8
Current: -0.8

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.90
BRO's Price/DCF (Projected) is ranked higher than
66% of the 196 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.90 vs. BRO: 0.90 )
BRO' s 10-Year Price/DCF (Projected) Range
Min: 0.7   Max: 7.76
Current: 0.9

0.7
7.76
Price/Median PS Value 0.90
BRO's Price/Median PS Value is ranked higher than
79% of the 362 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.10 vs. BRO: 0.90 )
BRO' s 10-Year Price/Median PS Value Range
Min: 0.11   Max: 1.62
Current: 0.9

0.11
1.62
Price/Peter Lynch Fair Value 3.50
BRO's Price/Peter Lynch Fair Value is ranked lower than
76% of the 58 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.20 vs. BRO: 3.50 )
BRO' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.16   Max: 3.73
Current: 3.5

0.16
3.73
Earnings Yield (Greenblatt) 7.60
BRO's Earnings Yield (Greenblatt) is ranked higher than
71% of the 338 Companies
in the Global Insurance Brokers industry.

( Industry Median: 6.30 vs. BRO: 7.60 )
BRO' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.9   Max: 11.5
Current: 7.6

4.9
11.5
Forward Rate of Return (Yacktman) 11.07
BRO's Forward Rate of Return (Yacktman) is ranked higher than
82% of the 273 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.80 vs. BRO: 11.07 )
BRO' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -15.9   Max: 26.1
Current: 11.07

-15.9
26.1

Business Description

Industry: Brokers & Exchanges » Insurance Brokers
Compare:AON, WSH, MMC, ERIE, NFP » details
Traded in other countries:BTW.Germany
Brown & Brown, Inc., is a Florida Corporation, which operates as an insurance agency, wholesale brokerage, insurance programs and service organization with origins dating from 1939. It markets and sells to its customer's insurance products and services, mainly in the property, casualty and employee benefits areas. It provides its customers with quality, non-investment insurance contracts, as well as other targeted, customized risk management products and services. The Company's business is divided into four reportable operating segments: the Retail Division; the National Programs Division; the Wholesale Brokerage Division; and the Services Division. The Retail Division provides a broad range of insurance products and services to commercial, public entity, professional and individual customers. The National Programs Division contains two units: Professional Programs, which provides professional liability and related package products for certain professionals; and Special Programs, which markets targeted products and services to specific industries, trade groups, public entities, and market niches. The Wholesale Brokerage Division markets and sells excess and surplus commercial and personal insurance, and reinsurance, primarily through independent agents and brokers. The Services Division provides clients with third-party claims administration, consulting for the workers' compensation insurance market, comprehensive medical utilization management services in both workers' compensation and all-lines liability arenas, and Medicare Secondary Payer statute compliance-related services. Its Wholesale Brokerage Division markets and sells excess and surplus commercial insurance products and services to retail insurance agencies (including its retail offices), and reinsurance products and services to insurance companies throughout the United States. At December 31, 20011, its Services Division employed 465 persons and provided the following services: insurance-related services, including comprehensive risk management and third-party administration services for insurance entities and self-funded or fully-insured workers' compensation and liability plans; comprehensive medical utilization management services for both workers' compensation and all-lines liability insurance plans; and Medicare set-aside allocation services and related administrative services associated with the Medicare Secondary Payer statute. The insurance intermediary business is highly competitive, and numerous firms actively compete with the Company for customers and insurance markets.

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