Brown & Brown (MEX:BRO) Interest Coverage: 5.25 (As of Mar. 2026) — 48% Below Median


MEX:BRO Brown & Brown Inc MEX:BRO
85 GF Score
Price MXN1,108.20
GF Value MXN1,927.74
Valuation Possible Value Trap
! 5 Warning Signs
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What is Brown & Brown Interest Coverage?

Brown & Brown MEX:BRO 85 Interest Coverage is 5.25 as of Mar. 2026, which is 48% below its 10-year median of 10.16. GuruFocus rates MEX:BRO with a GF Score™ of 85/100 and a GF Value™ of MXN1,927.74 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 351 Insurance companies, Brown & Brown ranks worse than 80.63% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Brown & Brown's Operating Income for the three months ended in Mar. 2026 was MXN9,936 Mil. Brown & Brown's Interest Expense for the three months ended in Mar. 2026 was MXN-1,893 Mil. Brown & Brown's interest coverage for the quarter that ended in Mar. 2026 was 5.25. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Brown & Brown's Interest Coverage or its related term are showing as below:

MEX:BRO' s Interest Coverage Range Over the Past 10 Years
Min: 4.37   Med: 10.16   Max: 13.15
Current: 4.37


MEX:BRO's Interest Coverage is ranked worse than
80.63% of 351 companies
in the Insurance industry
Industry Median: 16.23 vs MEX:BRO: 4.37

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Brown & Brown  (MEX:BRO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Brown & Brown Interest Coverage Related Terms


Brown & Brown Interest Coverage Historical Data

* Premium members only.

The historical data trend for Brown & Brown's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Brown & Brown Interest Coverage Chart

Brown & Brown Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.15 6.51 6.08 6.80 4.91

Brown & Brown Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.42 6.36 3.74 3.12 5.25

MEX:BRO vs WTW, ERIE, NP: Interest Coverage Comparison

For the Insurance Brokers subindustry, Brown & Brown's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Brown & Brown Interest Coverage vs Insurance Industry

For the Insurance industry and Financial Services sector, Brown & Brown's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Brown & Brown's Interest Coverage falls into.


MEX:BRO
85GF Score
Brown & Brown Inc MEX:BRO
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Brown & Brown Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Brown & Brown's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Brown & Brown's Interest Expense was MXN-5,510 Mil. Its Operating Income was MXN27,045 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN128,507 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*27044.561/-5509.744
=4.91

Brown & Brown's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Brown & Brown's Interest Expense was MXN-1,893 Mil. Its Operating Income was MXN9,936 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN123,019 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*9936.018/-1893.434
=5.25

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.25 mean?
Brown & Brown (MEX:BRO) has a Interest Coverage of 5.25 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Brown & Brown and its competitors. This is 48% below median its historical median of 10.16. Over the past decade, Brown & Brown's Interest Coverage has ranged from 4.37 to 13.15. According to the industry distribution chart, Brown & Brown ranks #283 out of 351 companies in the Insurance industry, placing it in the top 80.6%.
Is Brown & Brown's Interest Coverage too high?
Brown & Brown's current Interest Coverage of 5.25 is 48% below median its 10-year median of 10.16. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 13.15. The Insurance industry median Interest Coverage is 16.23. Brown & Brown's value of 5.25 is 67.7% below this industry median. Based on the distribution chart, Brown & Brown ranks #283 out of 351 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Brown & Brown has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Brown & Brown's Interest Coverage compare to WTW and ERIE?
According to the Insurance industry distribution chart, Brown & Brown ranks #283 out of 351 companies for Interest Coverage. This places Brown & Brown in the lower half of its industry. The industry median Interest Coverage is 16.23. Brown & Brown's value of 5.25 is 67.7% below this benchmark. Historically, Brown & Brown's own Interest Coverage has ranged from 4.37 to 13.15 over the past decade. While the company's 10-year median is 10.16 vs. the industry median of 16.23, Brown & Brown has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Brown & Brown's current Interest Coverage of 5.25 is 67.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Brown & Brown and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brown & Brown's current Interest Coverage is 5.25, which is 48% below median its own 10-year median of 10.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brown & Brown stock overvalued right now?
Based on GuruFocus' analysis, Brown & Brown (MEX:BRO) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,927.74, compared to a current price of MXN1,108.20 — trading 42.5% below its estimated fair value. The current Interest Coverage is 5.25, which is 48% below median its 10-year median of 10.16 and 67.7% below the Insurance industry median of 16.23. Brown & Brown's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Brown & Brown (MEX:BRO), the current Interest Coverage is 5.25 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Brown & Brown (MEX:BRO) Overvalued in 2026?

Based on GuruFocus' analysis, Brown & Brown stock appears to be undervalued. The current stock price of MXN1,108.20 is trading 42.5% below its estimated GF Value™ of MXN1,927.74. GuruFocus considers Brown & Brown to be Possible Value Trap.

Key valuation signals for MEX:BRO:

  • Interest Coverage: 5.25 (48% below median its 10-year median of 10.16)
  • GF Value™: MXN1,927.74 vs. price of MXN1,108.20 (42.5% below fair value)
  • GF Score™: 85/100 with 5 warning signs
  • Industry Position: 67.7% below the Insurance median (#283 of 351)

No single metric tells the full story. See the MEX:BRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Brown & Brown Business Description

Address 300 North Beach Stree, Daytona Beach, FL, USA, 32114
Brown & Brown Inc is a diversified insurance agency, wholesale brokerage, insurance programs, and service. The company's business is divided into two reportable segments: (i) the Retail segment, and (ii) the Specialty Distribution segment. The Retail segment provides a broad range of insurance products and services to commercial, public and quasi-public entities, and to professional and individual customers, as well as non-insurance warranty services and products through automobile and recreational vehicle dealer services businesses. The Specialty Distribution segment consists of wholesale brokerage and specialty businesses. Its geographic area is U.S, U.K and Others.
85GF Score

Get the complete analysis for MEX:BRO

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN1,108.20
Price
MXN1,927.74
GF Value