Brown & Brown, Inc. (BRO) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Brown & Brown, Inc.

Updated on October 2, 2026 · accounts published on July 27, 2026

Reading of October 2, 2026: A fast-growing, high-margin business whose per-share earnings are lagging its sales

Brown & Brown trades at a P/E of 18.3, 34 % below its ten-year median of 27.8, a level seen only 3 % of the time in the last decade.

• Is Brown & Brown expensive or cheap? At 1.6× book with a 9.6 % ROE it is borderline for an insurer, yet its P/E has been lower only 3 % of the past decade.
• How is the business doing? Revenue grew 27 % over the last 12 months and the operating margin of 29 % beats its 2014-2025 average of 27 %, but EPS fell 8.7 %.
• How strong is the balance sheet? Debt-to-equity is 0.64 over the last 12 months, more than twice the 0.3 prudence line for insurers; the dividend has risen 11 years running.
• What to expect from the next earnings? Brown & Brown reports on October 26, 2026; analysts expect EPS of $1.09, and only 10 of 31 rate the stock a buy.
• Does Brown & Brown underwrite with discipline and build book value? Book value per share grew 24 % a year in fiscal 2020-2025, three times the 8 % bar that counts as healthy for insurers.

Is Brown & Brown expensive or cheap?

For an insurer, price to book comes first. Brown & Brown trades at 1.6× book value over the last 12 months with a 9.6 % return on equity. For a mid-range ROE like that, insurers look healthy up to 1.5× and borderline up to 2.0×, so the stock sits in the borderline zone. The P/E of 18.3 looks cheap against its own history: it is 34 % below the ten-year median of 27.8, and the stock has traded lower only 3 % of the time over the decade. Against the sector median of 13.4 it still carries a 37 % premium, even after the shares fell 35 % over the last 12 months.

How is the business doing?

Sales are expanding fast: revenue rose 27 % over the last 12 months. Profitability has held up too, with an operating margin of 29 % in fiscal 2025, above the 27 % average of fiscal 2014-2025, and a net margin of 18 % over the last 12 months. The weak spot is per share. EPS fell 8.7 % over the same period, so the extra revenue did not translate into more profit per share. Return on equity of 9.6 % is modest for a business with these margins, consistent with an equity base that has grown faster than profits.

How strong is the balance sheet?

Leverage is the point that fails the insurance checklist. Debt-to-equity stands at 0.64 over the last 12 months, more than twice the 0.3 that counts as prudent for an insurer, which leaves less cushion than the sector benchmark. Shareholder returns are steadier. Brown & Brown has raised its dividend per share for 11 consecutive fiscal years through 2025, just past the ten-year bar for an insurance dividend aristocrat. The yield is a small 1.1 % over the last 12 months, and the fiscal 2025 payout of 18 % of earnings leaves ample room to keep raising it.

What to expect from the next earnings?

The next report arrives on October 26, 2026, with analysts expecting EPS of $1.09 for the quarter. The track record is mostly positive: Brown & Brown beat EPS estimates in 6 of the last 8 quarters, although the latest report, on July 27, 2026, came in at $1.07 against $1.08 expected, a 0.9 % miss. Expectations are stable, with the 2026 EPS consensus unchanged at $4.49 over the last 17 days. Sentiment is lukewarm: of 31 analysts, 10 recommend buying, 20 holding and 1 selling. The figure to watch is whether EPS growth turns positive again after falling 8.7 % over the last 12 months.

Does Brown & Brown underwrite with discipline and build book value?

Insurers make money two ways: by underwriting well and by investing the float, the premiums they hold before paying claims. That is how Buffett built Berkshire, and why the sector is judged on sustained margins and growth in book value rather than on sales alone. Brown & Brown clears both tests. Its operating margin averaged 28 % in fiscal 2021-2025, nearly three times the 10 % healthy threshold, and book value per share compounded 24 % a year in fiscal 2020-2025 against an 8 % bar. Debt above 0.3 times equity and a P/B above the 1.5× healthy line are the two marks that keep the scorecard from being clean.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.