Last Updated: 07 Nov 2024
Executive Summary
Brown & Brown Inc. (BRO) is a leading insurance broker and service provider with a strong financial performance and positive analyst sentiment. The company's stock price is currently trading at $110.81, within its 52-week range and above its key moving averages.
Company Overview
Brown & Brown markets and sells insurance products and services in the US and internationally. The company operates through its retail, wholesale, and specialty insurance segments. Brown & Brown has a long history of growth and profitability, with a strong reputation in the industry.
Fundamental Analysis
Revenue and Earnings: Brown & Brown has consistently grown its revenue and earnings over the past several years. In the latest quarter (ending September 2024), the company reported revenue of $4.56 billion, a 9.9% increase year-over-year. Diluted EPS was $3.78, a 31.1% increase.
Profitability: The company's profit margins are strong, with a gross profit margin of 38.4% and an operating margin of 28.3%. Brown & Brown also generates a high return on assets (5.2%) and return on equity (18.1%).
Financial Strength: Brown & Brown has a solid financial position, with a low debt-to-equity ratio of 0.27. The company also has a strong cash flow, with operating cash flow of $1.2 billion in the latest fiscal year.
Technical Analysis
Price Action: BRO's stock price has been trending higher in recent months, breaking above its 50-day and 200-day moving averages. The stock is currently trading above its support level at $105.
Indicators: The Relative Strength Index (RSI) is in bullish territory, indicating that the stock is not overbought. The Moving Average Convergence Divergence (MACD) is also bullish, with the MACD line above the signal line.
Short Term Outlook
In the short term, Brown & Brown's stock price is expected to continue its upward trend. The company's strong financial performance and positive analyst sentiment are likely to support further price gains. The stock could potentially reach its analyst target price of $112.03 in the coming months.
Long Term Outlook
The long-term outlook for Brown & Brown is also positive. The company is expected to continue growing its business through organic growth and acquisitions. The insurance industry is expected to continue growing in the long term, which should benefit Brown & Brown.
Analyst Recommendations
Analysts have a positive view of Brown & Brown's stock. The consensus analyst rating is "Buy," with 1 Strong Buy, 6 Buy, 7 Hold, and 2 Sell ratings. The average analyst target price is $112.03, implying a potential upside of 1.1% from the current price.
