BROWN & BROWN, INC. (BRO)

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AI: Fair-priced

Price checkStrong cash generation is offset by heavy debt and weak underlying growth.

Google Finance’s latest verifiable price was $70.54 at the August 14 close, with a $23.6 billion market value. Supplied filing figures imply trailing net income near $1.21 billion, making the shares roughly 20 times earnings. Free cash flow—cash left after operating and capital spending—was about $1.45 billion, a 6.1% yield. Adding $6.84 billion of net debt lowers that yield to about 4.7% on total business value. This supports a Fair-priced verdict rather than a clear bargain.

Big pictureAcquisitions drove impressive expansion, but the existing businesses have stopped growing.

Revenue increased from $2.61 billion in 2020 to $5.90 billion in 2025, while operating cash flow doubled from $713 million to $1.45 billion. Recent growth is acquisition-led: first-half 2026 revenue rose 33%, but revenue from businesses owned in both periods fell 0.3%, or rose only 1.6% including performance-linked commissions. Insurance broking is resilient because policies renew, yet softer commercial insurance prices reduce commissions. The bull case is successful Accession cross-selling; the bear case is paying heavily while existing operations stagnate.

Business strengthProfits convert into cash well, but the large acquisition reduced financial safety.

Over the latest twelve months, operating cash was about $1.52 billion versus roughly $1.21 billion of net income; after approximately $74 million of capital spending, free cash flow was about $1.45 billion. June cash was $918 million, while current assets of $8.69 billion exceeded current liabilities of $7.71 billion, although much is client-related money. Net debt reached $6.84 billion. Shares rose from 286 million at 2024 year-end to 330 million. First-half buybacks of $500 million partly reversed acquisition dilution, and $112 million of dividends was well covered.

What could change the storyFaster acquired-business growth would justify the price; continued stagnation would not.

At $70.54, investors need Accession to lift per-share earnings enough to offset roughly 15% more shares and nearly doubled net debt. Evidence would improve if revenue from existing operations returned above roughly 4% and free cash flow stayed near $1.4 billion while debt declined. Another year near zero growth, weaker performance-linked commissions after storms, softer insurance pricing, or higher interest costs would make roughly 20 times trailing earnings demanding. The clearest upside is integration and cross-selling; the clearest downside is lasting leverage without renewed underlying growth.

$70.54 price considered

AI: News

Second-quarter resultsAcquired revenue surged, but nearly flat underlying growth kept integration quality in focus.

On July 27, 2026, Brown & Brown reported $1.68 billion of quarterly revenue, up 30.4%, and diluted earnings of $0.84 per share, up 7.7%. Revenue from businesses owned in both periods fell 0.7%, or rose 0.7% when performance-linked commissions were included. Shares gained 5.7% on July 28 and another 1.7% on July 29. The timing is consistent with a favorable response, but it does not prove that the report alone caused the move.

Analyst growth downgradeMorgan Stanley lowered its rating as softer insurance prices raised doubts about near-term growth.

On July 6, 2026, Morgan Stanley changed its rating to one expecting the shares to lag the market and cut its target from $60 to $55. The firm cited slowing underlying growth, softer insurance pricing, property exposure and stronger competition for employees. Shares declined about 2.2% that day. The timing is consistent with the downgrade influencing sentiment, but does not establish sole causation. The action highlighted concern that acquisition growth was masking weakness in existing operations.

First-quarter growth stalledAcquired revenue lifted sales, while flat underlying growth exposed the softer insurance market.

On April 27, 2026, first-quarter revenue reached $1.90 billion, up 35.4%, but revenue from businesses owned in both periods was flat; including performance-linked commissions, it rose 2.2%. Diluted earnings per share fell 7.8% to $1.06 because acquisition effects and the larger share count offset higher total profit. Shares fell 4.5% on April 28 and 2.4% on April 29. That timing suggests disappointment, although broader trading and later interpretation may also have contributed.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$5.90B	$4.80B	$4.26B	$3.57B	$3.05B	$2.61B	$2.39B	$2.01B	$1.88B	$1.77B	$1.66B	$1.58B	$1.36B	$1.20B	$1.01B	$973.5M	$967.9M	$977.6M
Operating expenses	—	—	$3.11B	$2.70B	$2.29B	$1.99B	$1.87B	$1.55B	$1.43B	$1.34B	$1.26B	$1.24B	$1.01B	$895.2M	$743.0M	$707.4M	$713.1M	$705.1M
Net income	$1.05B	$993.0M	$871.0M	$672.0M	$587.1M	$480.5M	$398.5M	$344.3M	$399.6M	$257.5M	$243.3M	$206.9M	$217.1M	$184.0M	$164.0M	$161.8M	$153.3M	$166.1M
Basic EPSper diluted share	$3.37	$3.48	$3.07	$2.38	$2.08	$1.70	$1.42	$1.24	$1.43	$0.92	$1.72	$1.43	$1.50	$1.28	$1.15	$1.14	$1.08	$1.18
Diluted EPSper diluted share	$3.16	$3.46	$3.05	$2.37	$2.07	$1.69	$1.40	$1.22	$1.40	$0.91	$1.70	$1.41	$1.48	$1.26	$1.13	$1.12	$1.08	$1.17

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys4$505.4K disclosed value

Sells (SEC code S)4$61.14M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 9, 2026Form 4	JOHNSON JOIA MDirector	BuyCommon Stock, $.10 par value · indirect	860	$58.05	$49.9K	860
May 5, 2026Form 4	PROCTOR H PALMER JRDirector	BuyCommon Stock, $.10 par value	2.0K	$57.10	$114.2K	47.6K
Aug 8, 2025Form 4	KRUMP PAUL JDirector	BuyCommon Stock, $.10 par value	2.7K	$93.31	$249.9K	5.4K
Aug 6, 2025Form 4	Masojada Bronislaw EdmundDirector	BuyCommon Stock, $.10 par value · indirect	1.0K	$91.44	$91.4K	5.0K
Nov 26, 2024Form 4	BROWN HYATT JChairman	SellCommon Stock, $.10 par value · indirect	29.9K	$111.75	$3.34M	36.00M

Review ownership filings at SEC.gov ↗

BROWN & BROWN, INC. (BRO)

Financial charts

Financial statements

Insider buys & sells