Brown & Brown Inc

Brown & Brown maintains a leveraged capital structure with total assets of $29.99 billion and total equity of $12.57 billion. The company carries $6.89 billion in long-term debt, resulting in a debt-to-equity ratio of 0.55. Liquidity is assessed as medium risk, driven by a negative net cash position after subtracting total debt from cash and equivalents of $1.08 billion. Operating cash flow stands at $1.45 billion, significantly exceeding capital expenditures of $68 million, indicating strong internal cash generation despite the debt load.

Profitability metrics show a return on equity of 9.13% and a return on assets of 3.83%. The company trades at a price-to-earnings ratio of 19.8 and a price-to-book ratio of 1.81, reflecting a premium valuation relative to book value. Net income of $1.05 billion on revenue of $5.90 billion yields a net margin of approximately 17.85%. Without cohort median data provided, these returns are evaluated in isolation, though the positive operating cash flow supports the current earnings profile.

Revenue concentration by segment and geography is not detailed in the available data, preventing specific analysis of exposure risks. The company’s activity is broadly defined as insurance brokerage and services, suggesting a diversified client base typical of large independent agencies, but specific segment contributions are omitted from the current snapshot.

Growth trajectory analysis is limited by the absence of historical period data in the input. Current revenue of $5.90 billion serves as the baseline for valuation, with an EV/Revenue multiple of 4.46 and EV/EBITDA of 15.63. The lack of historical trend data precludes year-over-year growth calculations, but the stable share count of 336 million basic and diluted shares indicates no recent aggressive buybacks or issuances.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, which requires monitoring of debt service obligations against operating cash flow. The low dilution risk is consistent with the identical basic and diluted share counts, suggesting minimal outstanding options or convertible securities impacting per-share metrics.

Recent observations include analyst price targets with a mean of $72.36 and a median of $72.00, implying upside from the current market price of $67.66. The mean recommendation is 2.77, indicating a neutral-to-buy consensus with 16 holds, 4 buys, and 1 strong buy. News event logs indicate technical processing failures ("failed_redrive") rather than fundamental corporate events, which do not impact the financial analysis.

Revenue grew 22.8% year-over-year to $5.9 billion in fiscal 2026, demonstrating strong top-line expansion momentum.

Free cash flow increased 18.7% to $1.17 billion in fiscal 2026, supporting robust capital generation capabilities.

Net income CAGR of 15.8% over four years reflects consistent bottom-line growth trajectory for shareholders.

Long-term debt surged to $7.6 billion in fiscal 2026, doubling from prior levels and increasing leverage risk.

Debt-to-equity ratio of 0.55 ranks in the bottom quartile of the insurance cohort, signaling high relative leverage.

Net income growth of 6.1% lagged revenue growth of 22.8%, suggesting margin compression pressures in fiscal 2026.

Medium liquidity risk flags indicate potential challenges in meeting short-term obligations given the current ratio of 1.04.

Cash conversion ratio of 1.26 falls below the insurance cohort median of 1.29, indicating slightly weaker cash generation efficiency.

Revenue $1.90B, +35,4% YoY; Operating income +32,8% YoY.

• ▍Revenue $1.90B, +35,4% YoY
• ▍Operating income +32,8% YoY
• ▍Net income +28,7% YoY
• ▍Free cash flow +42,6% YoY
• ▍Net margin 22.4%

Revenue $1.61B, +35,8% YoY; Operating income +31,9% YoY.

• ▍Revenue $1.61B, +35,8% YoY
• ▍Operating income +31,9% YoY
• ▍Net income +25,7% YoY
• ▍Free cash flow +58,2% YoY
• ▍Net margin 16.4%

Revenue $1.61B, +35,4% YoY; Operating income +12,3% YoY.

• ▍Revenue $1.61B, +35,4% YoY
• ▍Operating income +12,3% YoY
• ▍Net income −3,0% YoY
• ▍Free cash flow +13,5% YoY
• ▍Net margin 14.1%

Revenue $1.28B, +9,1% YoY; Operating income −0,6% YoY.

• ▍Revenue $1.28B, +9,1% YoY
• ▍Operating income −0,6% YoY
• ▍Net income −10,1% YoY
• ▍Free cash flow −5,2% YoY
• ▍Net margin 18.0%

Revenue $1.40B; Operating income $475.0M.

• ▍Revenue $1.40B
• ▍Operating income $475.0M
• ▍Net margin 23.6%

Revenue $1.18B; Operating income $320.0M.

• ▍Revenue $1.18B
• ▍Operating income $320.0M
• ▍Net margin 17.8%

Revenue $1.19B; Operating income $366.0M.

• ▍Revenue $1.19B
• ▍Operating income $366.0M
• ▍Net margin 19.7%

Revenue $1.18B; Operating income $364.0M.

• ▍Revenue $1.18B
• ▍Operating income $364.0M
• ▍Net margin 21.8%

Revenue $5.90B, +22,8% YoY; Operating income +14,0% YoY.

• ▍Revenue $5.90B, +22,8% YoY
• ▍Operating income +14,0% YoY
• ▍Net income +6,1% YoY
• ▍Free cash flow +18,7% YoY
• ▍Net margin 17.9%

Revenue $4.80B, +12,9% YoY; Operating income +22,8% YoY.

• ▍Revenue $4.80B, +12,9% YoY
• ▍Operating income +22,8% YoY
• ▍Net income +14,1% YoY
• ▍Free cash flow +13,2% YoY
• ▍Net margin 20.7%

Revenue $4.26B, +19,1% YoY; Operating income +17,8% YoY.

• ▍Revenue $4.26B, +19,1% YoY
• ▍Operating income +17,8% YoY
• ▍Net income +29,6% YoY
• ▍Free cash flow +27,3% YoY
• ▍Net margin 20.4%

Revenue $3.57B, +17,1% YoY; Operating income +23,8% YoY.

• ▍Revenue $3.57B, +17,1% YoY
• ▍Operating income +23,8% YoY
• ▍Net income +14,4% YoY
• ▍Free cash flow +16,6% YoY
• ▍Net margin 18.8%