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US Equities · Finance research note

BRO — Brown & Brown

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 47.18%
Profit Margins 18.36%
Return on Equity 11.93%
Return on Assets 5.51%
Free Float 0.29B
Dividend Yield 1.06%
Short Int % Utilisation 6.36%

2.2 Growth

Metric Value
Revenue Growth 35.7%
Free Cash Flow 1.52B
EBITDA 11.08 (Ratio)
Enterprise Value 27.54B
EV/Revenue 4.4
EV/EBITDA 11.08

Revenue growth of 35.7% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -22.00%
Risk / Std Dev (Ann.)* 30.14%
1-Year Price Return* -25.30%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $70.54
52-Week Range $53.81 – $98.30
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $5.76B $4.71B
Net income Reported net income $1.04B $981.00M
Total assets Year-end reported balance $29.99B $17.61B
Shareholders’ equity Year-end reported balance $12.55B $6.42B
Net margin Net income ÷ revenue 18.10% 20.85%
Asset turnover Revenue ÷ total assets 0.1922x 0.2671x
Equity multiplier Total assets ÷ shareholders’ equity 2.3903x 2.7433x
ROE Net margin × asset turnover × equity multiplier 8.31% 15.28%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: FCFF DCF is not the primary valuation method for financial institutions or REITs. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $70.55
Market capitalisation $23.61B
Revenue $5.76B
EBIT $1.68B
Reported free cash flow $1.38B
FCF yield 5.85%
Net debt / EBITDA 3.35x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:25:12.160004 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -38.16% -26.29%
Adjusted R² 0.06 0.12
Annualised residual volatility 27.80% 26.71%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) -0.29 (-1.76) 0.08 (0.46)
Size (SMB) 0.75 (3.40) 0.79 (3.46)
Value (HML) 0.08 (0.44) -0.26 (-1.14)
Profitability (RMW) NM 0.68 (3.53)
Investment (CMA) NM 0.48 (1.46)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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