Home Sectors Financial Services Present Valuation: Brown And Brown (NYSE: BRO)

Present Valuation: Brown And Brown (NYSE: BRO)

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Brown And Brown is part of the brokers and exchanges industry and financial services sector. The company CEO is J. Powell Brown. Brown and Brown Inc is an insurance agent and broker. It offers insurance products and services, primarily in the areas of property, casualty, and employee benefits, by connecting customers with insurance companies.

Previous Intraday Trading Performance:

The BRO stock showed a previous change of 1.08% with an open at 27.91 and a close of 28.13. It reached an intraday high of 28.16 and a low of 27.80.

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Liquidity:

The stock has a market cap of $7.9b with 279.6m shares outstanding, of which the float is 276.6m shares. Trading volume reached 1,113,578 shares compared to its average volume of 1,269,193 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Brown And Brown shares returned 0.29% and in the past 30 trading days it returned 3.79%. Over three months, it changed -2.01%. In one year it has changed 11.28% and within that year its 52-week high was 31.55 and its 52-week low was 24.34. BRO stock is 15.57% above its 52 Week Low.

Our calculations show a 200 day moving average of 28.38 and a 50 day moving average of 27.69. Currently BRO stock is trading -0.87% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

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Earnings:

The last annual fiscal EPS for the company was reported at 1.23 that ended on 31st of December 2018, which according to the previous close, that is a PE of 23.06. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.27. The TTM EPS is 1.23, which comes to a TTM PE of 22.87. Historically, the PE high was 28.80 and the PE low was 16.70. If the stock reached its PE low, that would represent a price of 20.54, which is a decrease of -26.98%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.26
09-30-2018:  0.38
06-30-2018:  0.26
03-31-2018:  0.33

The dividend per share is currently 0.32, which is a dividend yield of 1.14%. Also, the payout ratio is 26.02%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 15.77, which means it may be overvalued by -78.34%

Indicators to Watch:

Based on the latest filings, there is 1.10% of insider ownership and 104.00% of institutional ownership. Short-interest is 6,717,053, which is 2.40% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.51. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.70

Business Wire:  Bank of Hawaii Corporation 2018 Financial Results

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.33%, return on assets is 5.54%, profit margin is 17.13%, price-to-sales is 3.87 and price-to-book is 2.59.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 2  :Past Performance Score
 4  :Financial Strength Score
 2  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.