Key Takeaways AJG is pursuing organic and inorganic growth worldwide, with solid retention and improving renewal premiums. AJG expects margin stability near 21% in 2025, with Risk Management and Brokerage driving organic growth. AJG's acquisition pipeline remains strong, boosting international revenue share and supporting dividends. Arthur J. Gallagher & Co. (AJG) shares are trading at a discount compared with the Zacks Brokerage Insurance industry. Its price-to-book value of 2.85X is lower than the industr ...

Core Insights - Brown & Brown, Inc. (BRO) shares are trading at a discount compared to the Zacks Brokerage Insurance industry, with a forward price-to-earnings multiple of 16.72X, lower than the industry average of 17.49X, the Finance sector's 17.07X, and the Zacks S&P 500 Composite's 23.46X [1] - The company has a market capitalization of $26.77 billion, with an average trading volume of 2.8 million shares over the last three months [1] Performance Comparison - Brown & Brown shares have decreased by 23.8% over the past year, which is better than the industry's decline of 27.4% [3] - Earnings have grown by 21.5% in the past five years, surpassing the industry average growth of 15.2% [5] Growth Projections - The Zacks Consensus Estimate for Brown & Brown's 2025 earnings per share indicates a year-over-year increase of 11.4%, with revenues projected at $5.93 billion, reflecting a year-over-year improvement of 23.4% [4] - For 2026, earnings per share and revenues are expected to increase by 10.2% and 23.5%, respectively, compared to 2025 estimates [4] Analyst Sentiment - The average price target for BRO, based on short-term targets from 14 analysts, is $97.43 per share, suggesting a potential upside of 25.4% from the last closing price [6] Revenue Drivers - Commissions and fees, the main revenue component, benefit from new business, strong retention, and rate increases across most coverage lines [11] - The company has achieved its intermediate annual revenue goal of $4 billion, doubling its revenue in the last five years [11] Strategic Acquisitions - Brown & Brown has made 713 acquisitions since 1993, enhancing its market reach and product offerings [12] - The Quintes acquisition was noted as the largest transaction in 2024 [12] Financial Strength - The company maintains a strong liquidity position with an improving leverage ratio, ensuring effective cash deployment into acquisitions and shareholder returns [13] - Brown & Brown has a robust dividend history, increasing dividends for the last 30 years at a five-year CAGR of 8.7% [14]

Core Insights - Brown & Brown, Inc. (BRO) shares are trading at a discount compared to the Zacks Brokerage Insurance industry, with a forward price-to-earnings multiple of 19.69X, lower than the industry average of 19.79X and the Zacks S&P 500 Composite's 23.39X [1] - The company has a market capitalization of $29.98 billion and an average trading volume of 3.3 million shares over the last three months [1] Financial Performance - Brown & Brown's shares have declined by 11.9% over the past year, while the industry has seen a larger decline of 19.4% [3] - The Zacks Consensus Estimate for Brown & Brown's 2025 earnings per share indicates an 8.3% year-over-year increase, with revenues projected at $5.83 billion, reflecting a 21.3% year-over-year improvement [3] - Earnings have grown by 21.5% over the past five years, surpassing the industry average growth of 15.2% [4] Growth Strategy - The company has completed 702 acquisitions since 1993, leveraging strategic buyouts to capture market opportunities and enhance its product and service portfolio [8][12] - Brown & Brown has met its intermediate annual revenue goal of $4 billion, doubling its revenue in the last five years [11] Dividend and Capital Position - The company has a strong dividend history, having raised dividends for 30 consecutive years, with a five-year compound annual growth rate (CAGR) of 8.7% from 2019 to 2024 [8][14] - Brown & Brown maintains a robust liquidity position and an improving leverage ratio, ensuring strong cash conversion and effective cash deployment for acquisitions and shareholder dividends [13] Analyst Sentiment - The average price target for BRO, based on short-term estimates from 14 analysts, is $111.50 per share, suggesting a potential upside of 22.6% from the last closing price [9] - Positive analyst sentiment and favorable growth estimates position the company well for future growth [15]