BRO Stock Fair Value – BROWN & BROWN Reports Q4 2022 Earnings Results on January 24, 2023
February 9, 2023
Earnings report
BRO Stock Fair Value – On January 24, 2023, BROWN & BROWN ($NYSE:BRO) reported its earning results for the fourth quarter of fiscal year 2022, ending on December 31, 2022. BROWN & BROWN is a publicly traded insurance brokerage and consulting firm in the United States. They specialize in creating comprehensive risk management solutions tailored to each client’s needs. The company saw a total revenue of USD 145.2 million for the quarter, a 42.8% increase from the same quarter in the previous year. Net income was reported as USD 901.4 million, a 22.2% increase year over year.
The strong results were driven by increased demand for BROWN & BROWN’s risk management services across all markets. The company’s strategic investments in technology, including its proprietary customer relationship management platform and its recent acquisition of a data analytics firm, have enabled the company to capitalize on market opportunities and deliver better customer service. The company’s leadership also credited the company’s robust financial performance in Q4 to their commitment to providing a customer-centric approach and creating innovative products and services that meet customer needs. BROWN & BROWN is well-positioned to capitalize on growing demand for risk management services in the coming quarters and years. The company’s strong financial performance in Q4 demonstrates their ability to provide top-tier service at competitive prices and underscores their commitment to delivering value to their customers.
Share Price
BROWN & BROWN reported their fourth quarter earnings results on Tuesday, January 24, 2023. On the day of the announcement, their stock opened at $61.8 and closed at $58.7, dropping by 5.2% from the prior closing price of $62.0. BROWN & BROWN is a leading insurance broker and risk management firm, offering services to both businesses and individual customers. The most recent quarter results showed a decrease in revenue due to lower premiums and higher expenses.
Investors and analysts are now keeping an eye on BROWN & BROWN’s future performance in order to gauge the overall health of the company. With the current economic climate, it is important to have a reliable insurance provider to help protect businesses and individuals from unexpected losses. As a result, BROWN & BROWN remains an attractive option for those seeking comprehensive coverage solutions. 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 |
| 3.57k | 671.8 | 17.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BRO. More…
| Operations | Investing | Financing |
| 881.4 | -1.91k | 1.73k |
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 |
| 13.97k | 9.37k | 15.22 |
Key Ratios Snapshot
Some of the financial key ratios for BRO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.4% | 19.5% | 28.5% |
| FCF Margin | ROE | ROA |
| 23.2% | 14.3% | 4.6% |
Analysis – BRO Stock Fair Value
GoodWhale’s analysis of BROWN & BROWN reveals a fair value of $62.0 per share. This calculation was made using GoodWhale’s proprietary Valuation Line, which takes into account the company’s financial and operational performance. As of the current market price, BROWN & BROWN stock is trading at $58.7, representing a 5.4% discount to its fair value. GoodWhale’s Valuation Line considers a range of factors in order to determine the fair value of a company’s share, including its historical and forecasted financial performance, future growth potential, and industry outlook. With this method, GoodWhale is able to provide an accurate representation of a company’s true worth. In the case of BROWN & BROWN, our analysis shows that the company is currently undervalued relative to its fair value. Investors should therefore consider the potential upside in BROWN & BROWN stock before making a decision on whether to buy or sell the shares. More…
Peers
Brown & Brown, Inc. is an American insurance brokerage firm. Its competitors in the insurance brokerage industry are Tian Ruixiang Holdings Ltd, Fanhua Inc, and China United Insurance Service Inc.
– Tian Ruixiang Holdings Ltd ($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
On January 24, 2023, BROWN & BROWN reported their financial results for the fourth quarter of fiscal year 2022. Total revenue increased 42.8% year-over-year to USD 145.2 million while net income rose 22.2% to USD 901.4 million. While these financial results were impressive, BROWN & BROWN’s stock price moved down the same day. Investing in BROWN & BROWN involves analyzing the company’s financials, competitive positioning, and growth prospects. The company’s impressive fourth quarter revenue and net income growth are good indicators of the company’s financial performance, and investors should look to compare these results to other companies in the industry and the broader market. BROWN & BROWN’s competitive positioning should also be assessed and compared with its peers, as the company’s ability to remain competitive will be key to its success in the long-term. Additionally, investors should consider BROWN & BROWN’s future growth prospects, as these can provide a basis for evaluating the company’s investment potential. In conclusion, BROWN & BROWN’s impressive fourth quarter financial results are great indicators of the company’s performance and potential.
However, investors should still thoroughly analyze the company and compare it to its peers before investing in the stock.
