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Brown & Brown - AI Stock Analysis
Analysis generated February 26, 2025
Brown Brown, Inc. is a leading insurance brokerage firm that provides a variety of insurance products and related services. The company operates through dedicated segments such as Retail, National Programs, Wholesale Brokerage, and Services. They cater to a wide array of clients, including both commercial and individual customers, offering personalized insurance solutions. With a history of strong operational performance, Brown Brown has built a reputation for excellence in the insurance industry.
Fundamental Analysis
For the most recent quarter, Brown Brown reported revenue of $1.19 billion. This figure marks an increase of 0.68% from the previous quarter, signifying steady short-term growth. On a year-over-year basis, revenue has grown by an impressive 11.05%, highlighting the company's positive long-term performance.
Net income for the last quarter stood at $234 million, a decrease of 8.95% compared to the previous quarter. While this dip is concerning, when viewed year-over-year, the net income increased by 32.95%, showing a robust annual growth trajectory.
Regarding EBITDA, Brown Brown reported $414 million for the last quarter. This is an increase of 4.55% from the previous quarter and a year-over-year increase of 12.38%. These figures contribute to a positive outlook for ongoing operational efficiency.
The current Price to Earnings (P/E) ratio is 32.54. While this might be considered high and could signal overvaluation, the financial growth metrics suggest that the stock may still hold potential for investors who value growth.
Technical Analysis
The current stock price of Brown Brown is $114.79, marking an increase of 8.45% from a month ago. This indicates a positive short-term trend. Compared to the same period last year, the stock has increased by 37.24%, suggesting a strong long-term bullish trend.
The 10-day Simple Moving Average (SMA10) is currently 112.33, which is higher than the previous SMA10 of 111.91. This signals a potential upward trend in price movement. Meanwhile, the Relative Strength Index (RSI) is 65.4, indicating a neutral condition, but leaning towards slightly overbought, which investors should keep an eye on.
Alternative Data Analysis
Brown Brown has 501 open positions listed on popular job boards, a stable figure over recent months, indicating a stable employment situation. Employee sentiment is reportedly neutral, suggesting a balanced internal company outlook.
In terms of customer acquisition, the company's website has an estimated 24,000 visitors. However, this number has declined by 29% over the past few months, which could indicate a potential dip in customer interest or market share.
Regarding customer engagement, Brown Brown has 2,000 Instagram followers, with a recent increase of 4%. This uptick indicates rising interest in the company’s social media presence. Brown Brown also has 640 Twitter followers, a figure that has remained stable recently.
An interesting metric is the AltIndex's AI score, which combines various data points to predict stock performance. Brown Brown holds an AI score of 69, signaling a "buy."
Conclusion and Recommendation
Brown Brown demonstrates several encouraging signs of growth and stability. The revenue and EBITDA figures reveal consistent short-term and long-term performance improvements. However, the dip in net income compared to the previous quarter is a cautionary point that should be monitored. The stock's technical indicators collectively suggest a bullish trend, backed by increasing prices and improving simple moving averages.
Despite a current high P/E ratio, the company’s strong year-over-year growth, stable job openings, and positive social media metrics offer a promising outlook. Nevertheless, the decline in website visitors is a cautionary signal that should not be ignored.
Taking into account all the data points, including the AltIndex AI score pointing to a "buy," the overall assessment recommends a cautious yet optimistic stance on Brown Brown. The stock appears to be a strong candidate for investment, particularly for those who value growth and are willing to keep an eye on short-term fluctuations.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
