Is Brown Brown (NYSE:BRO) ripping up institutional investors?

Brown Brown Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 13.8 Billion. Interest Coverage is expected to rise to 14.42 this year, although the value of Average Assets will most likely fall to about 7.1 B. As many millenniums are excited about financial services space, it is only fair to outline Brown Brown. I will take a closer look at this stock and the latest sentiment generated by institutional investors. Here I will also expose some primary fundamental factors affecting Brown Brown's services, and outline how it will impact the outlook for investors this year.
Published over a year ago
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Reviewed by Rifka Kats

The company reported the last year's revenue of 2.54 B. Total Income to common stockholders was 459.68 M with profit before taxes, overhead, and interest of 1.08 B. About 17.0% of the company shares are held by company insiders. The book value of Brown Brown was currently reported as 13.05. Brown Brown has Price/Earnings To Growth (PEG) ratio of 2.33. The entity last dividend was issued on the 3rd of November 2020. The firm had 2:1 split on the 29th of March 2018.
The performance of Brown Brown in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Brown Brown's stock prices. When investing in Brown Brown, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Brown Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Brown Brown carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Brown Brown earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Brown Brown dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Brown one year expected dividend income is about USD0.31 per share.
At this time, Brown Brown's Dividends Paid is very stable compared to the past year. As of the 25th of April 2024, Dividend Payout Ratio is likely to grow to 0.31, while Dividend Yield is likely to drop 0.01.
Last ReportedProjected for Next Year
Dividends Paid134.9 M141.6 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.15  0.31 
Dividend Paid And Capex Coverage Ratio 15.30  11.29 
Investing in dividend-paying stocks, such as Brown Brown is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Brown Brown must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Brown Brown. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Brown Brown's Liquidity

Brown Brown financial leverage refers to using borrowed capital as a funding source to finance Brown Brown ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Brown Brown financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Brown Brown's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Brown Brown's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Brown Brown's total debt and its cash.

What do experts say about Brown?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

A Deeper Perspective

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Brown Brown has an asset utilization ratio of 50.75 percent. This suggests that the company is making $0.51 for each dollar of assets. An increasing asset utilization means that Brown Brown is more efficient with each dollar of assets it utilizes for everyday operations.

Brown is expecting lower volatility in February

Latest skewness is at 0.32. Brown Brown has relatively low volatility with skewness of 0.32 and kurtosis of 0.02. However, we advise all investors to independently investigate Brown Brown to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Brown Brown Investment

Whereas some firms under the insurance brokers industry are still a bit expensive, Brown Brown may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Brown Brown.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Brown Brown. Please refer to our Terms of Use for any information regarding our disclosure principles.

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