BRO Stock Intrinsic Value – Hold Brown & Brown: Its Debt Maturity Profile Offers Insight
December 7, 2023
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Its debt maturity profile offers important insight into its financial strength. Brown & Brown ($NYSE:BRO) has structured its debt maturity profile to be able to meet short-term obligations while still having resources available to fund long-term growth initiatives. This approach implies that Brown & Brown is confident in its ability to generate long-term profits from its operations. This indicates that the company is able to satisfy its liabilities without taking on too much additional leverage, which can put it at risk of defaulting on its payments.
Furthermore, Brown & Brown has consistently maintained an A- credit rating from S&P Global Ratings, demonstrating the strong financial foundation of the company. Ultimately, the favourable debt maturity profile of Brown & Brown provides investors with confidence in the company’s financial stability and growth potential.
Price History
On Wednesday, stock from BROWN & BROWN opened at $74.1 and closed at $73.9, representing a slight decrease of 0.2% from its prior closing price of 74.0. Investors may consider taking a closer look at the company’s debt maturity profile when making decisions about whether to hold on to the stock or not. This shows that the company has sufficient liquidity to meet its current obligations as well as long-term obligations such as capital expenditures. This is higher than the industry average, indicating the company’s financial strength and ability to pay off its obligations.
Overall, the debt maturity profile of BROWN & BROWN provides investors with valuable information about the company’s financial standing and its ability to meet its obligations in the long run. Therefore, investors should consider taking this into account when deciding whether to hold on to the stock or not. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BRO. More…
| Total Revenues | Net Income | Net Margin |
| 4.12k | 735 | 18.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BRO. More…
| Operations | Investing | Financing |
| 985.7 | -193.3 | -426.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BRO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.98k | 8.78k | 18.33 |
Key Ratios Snapshot
Some of the financial key ratios for BRO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.5% | 21.7% | 28.7% |
| FCF Margin | ROE | ROA |
| 22.5% | 14.4% | 5.3% |
Analysis – BRO Stock Intrinsic Value
As GoodWhale, we took a close look at BROWN & BROWN’s fundamentals to determine its intrinsic value. Our proprietary Valuation Line put the intrinsic value of BROWN & BROWN share at approximately $73.7. This suggests that the stock is trading near its fair market price – at the moment the stock is priced at $73.9. More…
Peers
Brown & Brown, Inc. is an American insurance brokerage firm. Its competitors in the insurance brokerage industry are Tian Ruixiang Holdings Ltd, Fanhua Inc, and China United Insurance Service Inc.
– Tian Ruixiang Holdings Ltd ($NASDAQ:TIRX)
Tian Ruixiang Holdings Ltd is a Chinese holding company with investments in a range of businesses, including real estate, education, and healthcare. The company has a market cap of 6.97M as of 2022 and a Return on Equity of -5.01%. Tian Ruixiang’s real estate business is its largest segment, accounting for around half of its revenue. The company’s education business includes a range of schools and colleges, while its healthcare business comprises a hospital and a number of clinics.
– Fanhua Inc ($NASDAQ:FANH)
Fanhua Inc. is a provider of financial services in China. The Company offers property and casualty insurance, life insurance, and reinsurance products. It also provides auto financing, rural financing, and other services. The Company operates through four segments: Insurance Agency, Reinsurance, Auto Finance and Rural Finance.
– China United Insurance Service Inc ($OTCPK:CUII)
54.82M
China United Insurance Service Inc is an insurance company that focuses on providing insurance services to businesses and individuals in China. The company has a market cap of $54.82M and a ROE of 29.69%. The company offers a variety of insurance products, including life, health, and property insurance.
Summary
Brown & Brown is an American insurance company with an established track record of success. Investing in Brown & Brown should be done with caution, as its debt maturity profile is one of the most important criteria to consider when assessing the company. A debt maturity profile refers to how much and when a company needs to pay back its debts, and Brown & Brown’s is relatively short-term in nature. This suggests that the company may not have adequate long-term liquidity to make large investments or take on large projects.
Additionally, it suggests that the company will require additional financing in order to meet its debt obligations. As such, investors should take a long-term approach when considering investment in Brown & Brown, and should carefully weigh the pros and cons before committing.
