Brown Story

BRO -- USA Stock

USD 46.38 0.46 0.98%

Macroaxis Story

Brown Brown is scheduled to announce its earnings today. The next earnings report is expected on the 26th of April 2021. 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 baby boomers are still indifferent towards financial services space, it makes sense to outline Brown Brown as a unique choice for millenniums.

Published over a month ago

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How much will Brown Brown owe in February?

The company has 2.32 B in debt with debt to equity (D/E) ratio of 0.63, which is OK given its current industry classification. Brown Brown has a current ratio of 1.38, which is typical for the industry and considered as normal. Our investment recommendation tool can be used to complement Brown Brown trade advice provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon.

Brown Brown financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Brown Brown, including all of Brown Brown's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Brown Brown assets, the company is considered highly leveraged. Understanding the composition and structure of overall Brown Brown debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding Brown Total Debt

Brown Brown liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Brown Brown has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Brown Brown balance sheet include debt obligations and money owed to different Brown Brown vendors, workers, and loan providers. Below is the chart of Brown main long-term debt accounts currently reported on its balance sheet.

You can use Brown Brown financial leverage analysis tool to get a better grip on understanding its financial position

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. Please check the breakdown between Brown Brown's total debt and its cash.

What do experts say?

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.

It is good to see analyst projects for Brown Brown, but it might be worth checking our own buy vs. sell analysis

Brown Brown exotic insider transaction detected

Legal trades by Brown Brown insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Brown insider trading alert for general transaction of common stock $.10 par value by Chris Walker, EVP and Pres. Programs Segment, on 24th of February 2021. This event was filed by Brown Brown Inc with SEC on 2021-02-24. Statement of changes in beneficial ownership - SEC Form 4. Chris Walker currently serves as executive vice president, president ? programs division of Brown Brown [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

The entity 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.

Asset Breakdown

5 B

Assets Non Current

4.6 B

Goodwill

2.4 B

Current Assets

	Total Assets	7.34 Billion
	Current Assets	2.37 Billion
	Assets Non Current	4.97 Billion
	Goodwill	4.6 Billion
	Tax Assets	28.78 Million

Will Brown continue to rise?

Brown Brown latest skewness surges over 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 other entities under the insurance brokers industry are still a bit expensive, Brown Brown may offer a potential longer-term growth to institutional investors. All things considered, as of the 25th of January 2021, our research shows that Brown Brown is a rather very steady investment opportunity with a below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our current 30 days buy-or-sell advice on the company is Hold.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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 Ellen Johnson 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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