BRO Intrinsic Stock Value – BROWN & BROWN Reports Record Earnings for Q2 FY2023
July 27, 2023
🌥️Earnings Overview
On July 24th 2023, BROWN & BROWN ($NYSE:BRO) reported their second quarter FY2023 earnings results, which included a total revenue of USD 1047.3 million – a 24.7% rise compared to the same quarter in the previous year. Net income also increased by 31.1%, to USD 190.4 million.
Price History
On Monday, BROWN & BROWN reported record earnings for the second quarter of FY2023, with its stock opening at $71.1 and closing at $70.6, down by 0.8% from its previous closing price of 71.2. The company attributed its record earnings to strong growth in its core business lines such as retail and commercial insurance, employee benefits, and reinsurance solutions. It also saw increased demand for its technology services and specialty offerings. CEO Stephen D. Brown said, “We are proud to report record earnings for the second quarter of FY2023.
This is the result of hard work and dedication from our talented team of employees, as well as our strong customer focus and commitment to providing the best products and services in the industry.” BROWN & BROWN’s stock performance was slightly weaker than expected, due to market uncertainty surrounding the pandemic. With its long-term outlook still firmly intact, BROWN & BROWN remains well positioned to capitalize on growth opportunities in the years ahead. 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 |
| 3.98k | 726.6 | 17.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BRO. More…
| Operations | Investing | Financing |
| 923.7 | -1.58k | -394 |
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 |
| 14.07k | 9k | 17.88 |
Key Ratios Snapshot
Some of the financial key ratios for BRO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.0% | 20.4% | 28.6% |
| FCF Margin | ROE | ROA |
| 21.7% | 14.4% | 5.1% |
Analysis – BRO Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of BROWN & BROWN’s fundamentals and have come to the conclusion that its intrinsic value is around $68.2. This was calculated using our proprietary Valuation Line, which considers a variety of factors such as the company’s financial performance, competitive landscape and growth potential. Currently, BROWN & BROWN stock is trading at $70.6, a fair price that is slightly overvalued by 3.5%. We advise investors to pay close attention to how BROWN & BROWN performs in the near future, as market conditions and other factors could affect its stock price. More…
Peers
Brown & Brown, Inc. is an American insurance brokerage firm. Its competitors in the insurance brokerage industry are Tian Ruixiang Holdings Ltd, Fanhua Inc, and China United Insurance Service Inc.
– Tian Ruixiang Holdings Ltd ($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 reported strong financial results for the second quarter of FY2023, with total revenue of USD 1047.3 million and net income of USD 190.4 million, both of which saw an increase of 24.7% and 31.1%, respectively, compared to the same period in the prior year. This positive news is a sign that BROWN & BROWN is a reliable investment option, as the company has managed to maintain strong growth while continuing to generate a profit. Investors should closely monitor BROWN & BROWN’s performance and financial results throughout the rest of FY2023 for further signs of success.
