Brown & Brown, Inc. [NYSE:BRO]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to Brown & Brown, Inc. [BRO], the most recently available average analyst rating is from the quarter that ends in December. On average, stock market experts give BRO an Hold rating. The average 12-month price forecast for this stock is $29.27, with the high estimate being $33.00, the low estimate being $26.00 and the median estimate amounting to $29.00. This is compared to its latest closing price of $27.99.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Brown & Brown, Inc. [BRO] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.00.
For the quarter ending in Sep-18 Brown & Brown, Inc. [BRO] generated $0.53 billion in sales. That’s 4.43% higher than the average estimate of $0.51 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Mon 28 Jan (In 15 Days).
Fundamental Analysis of Brown & Brown, Inc. [BRO]
Now let’s turn to look at profitability: with a current Operating Margin for Brown & Brown, Inc. [BRO] sitting at +23.46 and its Gross Margin at +94.19, this company’s Net Margin is now 17.90%. These measurements indicate that Brown & Brown, Inc. [BRO] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 12.49, and its Return on Invested Capital has reached 8.80%. Its Return on Equity is 15.78, and its Return on Assets is 7.00. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates BRO financial performance.
Turning to investigate this organization’s capital structure, Brown & Brown, Inc. [BRO] has generated a Total Debt to Total Equity ratio of 37.80. Similarly, its Total Debt to Total Capital is 27.43, while its Total Debt to Total Assets stands at 16.83. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 33.15, and its Long-Term Debt to Total Capital is 24.06. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 14.44 and its Total Debt to EBITDA Value is 1.67. The Enterprise Value to Sales for this firm is now 4.01, and its Total Debt to Enterprise Value stands at 0.13. Brown & Brown, Inc. [BRO] has a Price to Book Ratio of 2.75, a Price to Cash Flow Ratio of 16.16 and P/E Ratio of 17.20. These metrics all suggest that Brown & Brown, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Brown & Brown, Inc. [BRO] earns $219,214 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 2.32 and its Total Asset Turnover is 0.33.
Let’s now turn our attention to trading performance: Brown & Brown, Inc. [BRO] has 275.95M shares outstanding, amounting to a total market cap of $7.67B. Its stock price has been found in the range of 24.34 to 31.55. At its current price, it has moved by -11.95% from its 52-week high, and it has moved 14.13% from its 52-week low.
This stock’s Beta value is currently 0.76, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 51.81. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Brown & Brown, Inc. [BRO] a Reliable Buy?
Shares of Brown & Brown, Inc. [BRO], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.