Brown & Brown, Inc. (BRO)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Brown & Brown as an insurance broker whose commissions and fees tend to recur, and the filed numbers show steady scale: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.7B, net income $288.0M and diluted EPS $0.84, versus $1.3B, $231.0M and $0.78 in the filed fiscal Q2 2025. For FY2025, revenue was $5.9B and net income $1.1B, or $3.16 per diluted share, against $4.8B, $993.0M and $3.46 in FY2024; the per-share dip despite higher profit is a wrinkle to watch. The franchise has some moat-like qualities from broker relationships and recurring demand, but the return numbers are only moderate: FairStock shows ROE of 10.02% and ROCE of 5.38%, with debt-to-equity of 0.64. Cash generation is a real strength: trailing twelve-month free cash flow was $1.4B, a 6.1% FCF yield. The balance-sheet scores are mixed, with Piotroski at 6/9 but Altman Z at 1.34. At the 2026-10-26 close of $71.08, FairStock's P/E is 22.71, P/B 1.86 and PEG 0.94; its Graham Number is $51.82, leaving a -40.81% margin of safety, meaning the price is above that rough value. The computed Lynch category is STALWART, based on 17.0% annual profit growth and 17.7% revenue growth over five years. This looks like a good stalwart business, but not a bargain; I would want a wider discount before calling it compelling.

In plain English: Brown & Brown sells insurance products and services to businesses and people. It earned $1.1 billion in fiscal 2025 and generated $1.4 billion in cash after running the business over the last twelve months, so the company looks financially solid. At $71.08 a share, the price is above a simple value check based on earnings and book value, so it looks expensive by that measure.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer