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 $90.9, Brown & Brown Inc has enjoyed a daily gain of 1.16%, and an impressive three-month growth of 8.09%. 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: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently, reflecting their varied impact on stock performance. 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: 10/10
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 retail segment, which accounts for over half of its revenue, offers a diverse range of insurance products and services to both entities and individuals. The national programs segment, contributing roughly a quarter of the revenue, includes professional liability coverage among other services. Brown & Brown Inc primarily operates in the United States, with a significant presence in Florida. The company's market cap stands at $25.93 billion, with sales reaching $4.32 billion and an operating margin of 28.14%.
Profitability and Growth Metrics
Brown & Brown Inc's Profitability Rank is impressive, with an operating margin that has consistently increased over the past five years, demonstrating the company's efficiency in converting revenue into profit. The Predictability Rank of 3.5 stars further highlights its stable operational performance, enhancing investor confidence.
On the growth front, Brown & Brown Inc has excelled with a 3-Year Revenue Growth Rate of 16.5%, outperforming 79.54% of its peers in the insurance industry. The company's EBITDA has also seen significant growth, with a three-year growth rate of 23 and a five-year rate of 19.5, underscoring its ongoing expansion and operational efficiency.
Conclusion
Considering Brown & Brown Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other companies with strong GF Scores through the GF Score Screen available to GuruFocus Premium members.
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.
