Brown & Brown
BRO
$65.08
-3.05%
Brown & Brown, Inc. is a diversified insurance agency and brokerage firm operating in the Financial Services sector, specifically within the Insurance Brokers industry. The company is a significant player in the market, operating through two primary segments: Retail, which serves commercial and individual clients, and Specialty Distribution, which focuses on wholesale brokerage. The current investor narrative centers on the company's aggressive acquisition strategy, as evidenced by its recent purchase of The Protectorate Group, which is aimed at expanding its dealer services footprint, juxtaposed against a backdrop of significant stock price underperformance relative to the broader market, raising questions about the effectiveness of its growth strategy in the current environment.…
BRO
Brown & Brown
$65.08
Related headlines
BRO 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Brown & Brown's 12-month outlook, with a consensus price target around $84.60 and implied upside of +30.0% versus the current price.
Average Target
$84.60
5 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
5
covering this stock
Price Range
$52 - $85
Analyst target range
Analyst coverage for BRO is limited, with only 5 analysts providing estimates, which is low for a company of its market cap and suggests it may be under-followed by the institutional community. The available data shows analyst estimates for EPS and revenue but does not provide a consensus price target, Buy/Hold/Sell distribution, or a target price range, indicating insufficient data to gauge consensus sentiment. The lack of a clear target and limited coverage typically implies higher volatility and less efficient price discovery, as the stock is less scrutinized. The recent institutional rating actions show a neutral to cautious tilt, with firms like Citigroup downgrading from Buy to Neutral in late January 2026, while Mizuho upgraded to Outperform from Neutral in late February. This mixed signal from analysts, coupled with the absence of a clear price target consensus, underscores the high uncertainty and debate surrounding the stock's outlook following its steep decline.
BRO Technical Analysis
The prevailing price trend for BRO is a pronounced and sustained downtrend, with the stock down 46.913% over the past year. As of the latest data, the stock is trading near the bottom of its 52-week range, with a current price of $65.95 sitting just 4.2% above its 52-week low of $63.29. This positioning suggests the stock is in deep value territory but also carries significant risk as a potential 'falling knife' if fundamental headwinds persist. Recent momentum shows continued weakness, with the stock down 8.6059% over the past month and 15.0348% over the past three months, indicating the downtrend is accelerating rather than finding a bottom. This negative short-term momentum starkly contrasts with the S&P 500's performance, as BRO has shown a relative strength of -11.0348% over three months, highlighting severe underperformance. Key technical support is firmly established at the 52-week low of $63.29, while resistance is far above at the 52-week high of $124.14. A breakdown below $63.29 would signal a continuation of the bearish trend, while any recovery would need to overcome significant overhead supply. The stock's beta of 0.826 indicates it is 17.4% less volatile than the broader market, which is unusual given the magnitude of its decline and suggests the sell-off has been driven by company-specific factors rather than sector-wide volatility.
Beta
0.83
0.83x market volatility
Max Drawdown
-49.0%
Largest decline past year
52-Week Range
$63-$122
Price range past year
Annual Return
-44.5%
Cumulative gain past year
| Period | BRO Return | S&P 500 |
|---|---|---|
| 1m | -4.8% | +0.5% |
| 3m | -19.3% | -2.1% |
| 6m | -32.2% | +4.0% |
| 1y | -44.5% | +29.5% |
| ytd | -16.2% | -0.4% |
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BRO Fundamental Analysis
Brown & Brown's revenue trajectory shows robust growth, with Q4 2025 revenue of $1.669 billion representing a substantial 53.26% year-over-year increase. This growth is being driven by both segments, with Specialty Distribution contributing $1.728 billion and Retail contributing $919 million for the period. However, profitability presents a mixed picture; the company reported strong net income of $264 million for Q4 2025 with a healthy net margin of 15.82%, but gross margin was exceptionally high at 83.82% for that quarter, though this appears to be an anomaly compared to prior quarters where it hovered around 50%. The company's balance sheet and cash flow position is solid, with a debt-to-equity ratio of 0.63 indicating moderate leverage and a current ratio of 1.04 showing adequate short-term liquidity. The company generated substantial free cash flow of $1.43 billion on a trailing twelve-month basis and an operating cash flow of $444 million in Q4 2025, providing ample internal funding for its acquisition-led growth strategy. Return on equity stands at 8.4%, which is respectable but not exceptional for the financial services sector.
Quarterly Revenue
$1.7B
2025-12
Revenue YoY Growth
+0.53%
YoY Comparison
Gross Margin
+0.83%
Latest Quarter
Free Cash Flow
$1.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BRO Overvalued?
Given BRO's positive net income of $264 million in its latest quarter, the primary valuation metric selected is the Price-to-Earnings (PE) ratio. The stock trades at a trailing PE of 23.44x and a forward PE of 13.25x based on analyst estimates. The significant discount of the forward PE implies the market expects substantial earnings growth, which aligns with the company's acquisition-driven strategy. Compared to industry averages, BRO's trailing PE of 23.44x is difficult to contextualize precisely without a provided sector average, but its forward multiple of 13.25x appears reasonable for a growing insurance broker. Historically, the stock's own valuation has compressed dramatically; its current trailing PE of 23.44x is below its recent historical range, as it traded at a PE of 34.19x as recently as Q3 2025 and 25.13x in Q4 2025. This compression to near the lower end of its historical band suggests the market is pricing in either a value opportunity or concerns about sustained fundamental deterioration, given the stock's severe price decline.
PE
23.4x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 16x~48x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.5x
Enterprise Value Multiple