# Brown & Brown (BRO.US)

Canonical: https://gigainvestors.com/s/BRO

Analysis as of: 2026-10-16T07:27:05.510Z. Financial observations: FY1998–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $67.98 per share; close as of 2026-10-15.

Estimated value: low $47.78 per share, central $54.37 per share, high $63.14 per share. Buy at or below the central value $54.37 per share. Valuation as of 2026-10-16T07:27:05.510Z; scenarios are not confidence intervals.

Expected annual return: 8.6% at the stated quote. About 8.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.26×

- FY2017: 0.25×

- FY2018: 0.25×

- FY2019: 0.24×

- FY2020: 0.26×

- FY2021: 0.28×

- FY2022: 0.27×

- FY2023: 0.27×

- FY2024: 0.28×

- FY2025: 0.48×

### moat: pass

- ROIC, median of available years: 58.4%

- ROIC, second-lowest year: 51.4%

- Typical minus recent gross margin: -1.4 pp

- Typical gross margin (annual median): 46.5%

- Recent gross margin (lower of latest and 3-year median): 47.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 10.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: >100%

- FY2018: 59.7%

- FY2019: 53.0%

- FY2020: 62.1%

- FY2021: 66.0%

- FY2022: 51.4%

- FY2023: 56.3%

- FY2024: 57.1%

- FY2025: 51.2%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.8B

- Net income, five-year total: $4.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 3.7 pp

- Working capital / revenue, change between three-year averages: 14.7 pp

- Working capital / revenue, final three-year average: 49.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.43×

- FY2022: 1.14×

- FY2023: 0.99×

- FY2024: 1.00×

- FY2025: 1.28×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 133.2% vs 56.3%

- Per-share earnings: 0.93 to 3.37 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.1%

- Ordinary dilution, 5-year annual growth: 2.6%

- Market cap gain: $20B

- Cumulative retained earnings: $4.9B

- Diluted shares, 10-year annual growth: 1.1%

- Diluted shares, 5-year annual growth: 2.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 17.4%

- Per-share value change: $2.43

- Per-share value, starting three-year median: $0.93

- Per-share value, ending three-year median: $3.37

- Buybacks concentrated in cheaper years (correlation): 0.45

- Average buyback yield: 0.7%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $17B

- Cumulative net income, 10 years: $6.1B

- ROIC, first three-year median: >100%

- ROIC, last three-year median: 56.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.93

- FY2017: $1.44

- FY2018: $1.25

- FY2019: $1.45

- FY2020: $1.74

- FY2021: $2.12

- FY2022: $2.41

- FY2023: $3.10

- FY2024: $3.50

- FY2025: $3.37

### accounting: pass

- Sloan accruals: -1.3%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 6.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.38×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.59×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: -0.7%

- FY2018: -3.3%

- FY2019: -3.7%

- FY2020: -2.7%

- FY2021: -3.7%

- FY2022: -1.5%

- FY2023: -0.9%

- FY2024: -1.0%

- FY2025: -1.3%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 45% since Mar 2025 · sales +22.8%

Story as of 2026-10-16T09:58:25.822Z; price observation 2026-10-15.

Price needs cash profits to grow 3.7% a year for ten years

### Sales · FY2024–2025

sales +22.8%; source https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm; observed 2026-02-12.

- FY2016: $1.8B 

- FY2017: $1.9B 

- FY2018: $2.0B 

- FY2019: $2.4B 

- FY2020: $2.6B 

- FY2021: $3.1B 

- FY2022: $3.6B 

- FY2023: $4.3B 

- FY2024: $4.8B 

- FY2025: $5.9B 

### Gross margin · FY2025

gross margin 47.9%; source https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm; observed 2026-02-12.

- FY2016: 47.4% 

- FY2017: 45.9% 

- FY2018: 46.7% 

- FY2019: 45.0% 

- FY2020: 44.8% 

- FY2021: 46.2% 

- FY2022: 49.2% 

- FY2023: 33.4% 

- FY2024: 47.8% 

- FY2025: 47.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in insurance brokers; annual sales are USD 5.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm#000119312526046984 (filed 2026-02-12); FY2025: revenue 5902000000; grossProfit 2828000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BRO.US: Brown & Brown, Inc. markets and sells insurance products and services in the United States, the United Kingdom, and internationally. It operates through Retail and Specialty Distribution segments. The Retail segment provides property and casualty insurance products, employee benefits insurance products, personal insurance products, specialties insurance products, risk management strategies, loss control surveys and analysis, consulting, and claims processing services. This segment also offers non-insurance services and products through automobile and recreational vehicle dealer services businesses. It serves commercial, public and quasi-public entities, professionals, and individual customers. The Specialty Distribution segment comprises wholesale brokerage and specialty businesses. This segment offers professional liability and related package insurance products for dentistry, legal, eyecare, financial services, physicians, and real estate title professionals, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also provides public entity-related and specialty programs through a network of independent agents, as well as program management services for insurance carrier partners. In addition, the company's wholesale brokerage businesses underwrite and place excess and surplus commercial and personal lines insurance through independent agents and brokers. Its program businesses operate under the Arrowhead Programs name. The company was formerly known as Poe & Brown, Inc. and changed its name to Brown & Brown, Inc. in April 1999. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.

### Why customers stay

Margins ranged from 33.4% to 47.9% during 2023–25; it earns 58.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 33.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 47.8%.

- Source: https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 47.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,1.3315267975805638],[2017,1.7127999881957934],[2018,0.5968226579643654],[2019,0.5297396077234071],[2020,0.6207922349032967],[2021,0.6597892813592734],[2022,0.5137546559127146],[2023,0.562774760796483],[2024,0.5706925386417213],[2025,0.5119634118429319]]; median 0.5837575983030434. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 100 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 0; upkeep 17765000; owner earnings 347392000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 0; upkeep 24192000; owner earnings 483582000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 0; upkeep 41520000; owner earnings 412113000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 0; upkeep 73108000; owner earnings 454121000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 0; upkeep 70700000; owner earnings 591200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 0; upkeep 45000000; owner earnings 842000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 0; upkeep 52600000; owner earnings 762700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 58600000; owner earnings 861500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 0; upkeep 82000000; owner earnings 991000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 68000000; owner earnings 1353000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,70262000],[2017,77712000],[2018,84690000],[2019,91344000],[2020,100600000],[2021,107200000],[2022,119500000],[2023,134900000],[2024,154000000],[2025,194000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 100000000 USD.

### Are managers owners

Insiders own 13.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BRO.US SharesStats.PercentInsiders = 13.281 percentage points; cache date 2026-10-16.

### What could break it

Our largest Specialty Distribution segment customer represented approximately 7.2% of the segment's total commissions and fees.

- Source: https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm (filed 2026-02-12); Through these businesses the segment provides a diverse trading platform for insurance carriers as well as expanded access and niche solutions for brokers and customers navigating complex and hard-to-place risks. Our largest Specialty Distribution segment customer represented approximately 7.2% of the segment's total commissions and fees. Our programs businesses, operating under the name "Arrowhead Programs," specialize in the development, underwriting and management of insurance program business, often designed for niche, underserved markets and distribute these coverages to retail agencies (including Brown & Brown retail offices), as well as affinity groups, wholesale entities and direct to consumers.

### What the price says

The price assumes cash profits grow 3.7% yearly over ten years; actual growth was 13.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.039922053759073095. Price 67.98; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.1892414639716797 → FY2025 4.322683706070287. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $18.43 per share

- 2016-11: $21.68 per share

- 2016-12: $22.43 per share

- 2017-01: $21.07 per share

- 2017-02: $21.55 per share

- 2017-03: $20.86 per share

- 2017-04: $21.45 per share

- 2017-05: $21.72 per share

- 2017-06: $21.54 per share

- 2017-07: $22.30 per share

- 2017-08: $22.48 per share

- 2017-09: $24.10 per share

- 2017-10: $24.92 per share

- 2017-11: $25.63 per share

- 2017-12: $25.73 per share

- 2018-01: $26.24 per share

- 2018-02: $26.32 per share

- 2018-03: $25.44 per share

- 2018-04: $27.23 per share

- 2018-05: $27.78 per share

- 2018-06: $27.73 per share

- 2018-07: $29.26 per share

- 2018-08: $30.48 per share

- 2018-09: $29.57 per share

- 2018-10: $28.18 per share

- 2018-11: $29.02 per share

- 2018-12: $27.56 per share

- 2019-01: $27.16 per share

- 2019-02: $29.62 per share

- 2019-03: $29.51 per share

- 2019-04: $31.75 per share

- 2019-05: $31.57 per share

- 2019-06: $33.50 per share

- 2019-07: $35.93 per share

- 2019-08: $36.89 per share

- 2019-09: $36.06 per share

- 2019-10: $37.68 per share

- 2019-11: $37.74 per share

- 2019-12: $39.48 per share

- 2020-01: $44.90 per share

- 2020-02: $43.01 per share

- 2020-03: $36.22 per share

- 2020-04: $35.91 per share

- 2020-05: $40.20 per share

- 2020-06: $40.76 per share

- 2020-07: $45.47 per share

- 2020-08: $46.40 per share

- 2020-09: $45.27 per share

- 2020-10: $43.51 per share

- 2020-11: $45.03 per share

- 2020-12: $47.41 per share

- 2021-01: $43.09 per share

- 2021-02: $45.90 per share

- 2021-03: $45.71 per share

- 2021-04: $53.18 per share

- 2021-05: $52.52 per share

- 2021-06: $53.14 per share

- 2021-07: $54.40 per share

- 2021-08: $58.05 per share

- 2021-09: $55.45 per share

- 2021-10: $63.11 per share

- 2021-11: $64.41 per share

- 2021-12: $70.28 per share

- 2022-01: $66.28 per share

- 2022-02: $67.61 per share

- 2022-03: $72.27 per share

- 2022-04: $61.98 per share

- 2022-05: $59.37 per share

- 2022-06: $58.34 per share

- 2022-07: $65.10 per share

- 2022-08: $63.04 per share

- 2022-09: $60.48 per share

- 2022-10: $58.79 per share

- 2022-11: $59.59 per share

- 2022-12: $56.97 per share

- 2023-01: $58.56 per share

- 2023-02: $56.07 per share

- 2023-03: $57.42 per share

- 2023-04: $64.39 per share

- 2023-05: $62.33 per share

- 2023-06: $68.84 per share

- 2023-07: $70.45 per share

- 2023-08: $74.10 per share

- 2023-09: $69.84 per share

- 2023-10: $69.42 per share

- 2023-11: $74.74 per share

- 2023-12: $71.11 per share

- 2024-01: $77.56 per share

- 2024-02: $84.21 per share

- 2024-03: $87.54 per share

- 2024-04: $81.54 per share

- 2024-05: $89.51 per share

- 2024-06: $89.41 per share

- 2024-07: $99.43 per share

- 2024-08: $105.13 per share

- 2024-09: $103.60 per share

- 2024-10: $104.64 per share

- 2024-11: $113.10 per share

- 2024-12: $102.02 per share

- 2025-01: $104.66 per share

- 2025-02: $118.54 per share

- 2025-03: $124.40 per share

- 2025-04: $110.60 per share

- 2025-05: $112.90 per share

- 2025-06: $110.87 per share

- 2025-07: $91.37 per share

- 2025-08: $96.95 per share

- 2025-09: $93.79 per share

- 2025-10: $79.74 per share

- 2025-11: $80.43 per share

- 2025-12: $79.70 per share

- 2026-01: $72.10 per share

- 2026-02: $71.82 per share

- 2026-03: $65.21 per share

- 2026-04: $60.15 per share

- 2026-05: $56.25 per share

- 2026-06: $64.15 per share

- 2026-07: $70.40 per share

- 2026-08: $72.17 per share

- 2026-09: $60.90 per share

- 2026-10: $67.98 per share

## Annual estimated value (USD per share)

- FY2016: low $13.95 per share, central $15.88 per share, high $18.44 per share

- FY2017: low $14.87 per share, central $16.92 per share, high $19.65 per share

- FY2018: low $16.04 per share, central $18.25 per share, high $21.19 per share

- FY2019: low $19.11 per share, central $21.74 per share, high $25.25 per share

- FY2020: low $21.19 per share, central $24.11 per share, high $28.00 per share

- FY2021: low $30.90 per share, central $35.17 per share, high $40.84 per share

- FY2022: low $29.88 per share, central $34.00 per share, high $39.48 per share

- FY2023: low $35.35 per share, central $40.22 per share, high $46.71 per share

- FY2024: low $39.48 per share, central $44.92 per share, high $52.16 per share

- FY2025: low $44.00 per share, central $50.06 per share, high $58.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/79282/000119312526046984/bro-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.