Brown Brown Price To Sales vs. Profit Margin
| BRO Stock | USD 111.74 0.31 0.28% |
Brown Brown Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.56 | 0.3337 |
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| Net Profit Margin | 0.12 | 0.2045 |
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| Operating Profit Margin | 0.26 | 0.25 |
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| Pretax Profit Margin | 0.19 | 0.2692 |
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| Return On Assets | 0.0816 | 0.0585 |
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| Return On Equity | 0.15 | 0.156 |
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For Brown Brown profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brown Brown to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brown Brown utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brown Brown's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brown Brown over time as well as its relative position and ranking within its peers.
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Brown Brown's Revenue Breakdown by Earning Segment
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Is Insurance Brokers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Brown Brown. If investors know Brown will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Brown Brown listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.311 | Dividend Share 0.52 | Earnings Share 3.68 | Revenue Per Share 16.261 | Quarterly Revenue Growth 0.099 |
The market value of Brown Brown is measured differently than its book value, which is the value of Brown that is recorded on the company's balance sheet. Investors also form their own opinion of Brown Brown's value that differs from its market value or its book value, called intrinsic value, which is Brown Brown's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Brown Brown's market value can be influenced by many factors that don't directly affect Brown Brown's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Brown Brown's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brown Brown is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brown Brown's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Brown Brown Profit Margin vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Brown Brown's current stock value. Our valuation model uses many indicators to compare Brown Brown value to that of its competitors to determine the firm's financial worth. Brown Brown is number one stock in price to sales category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.03 of Profit Margin per Price To Sales. The ratio of Price To Sales to Profit Margin for Brown Brown is roughly 30.47 . At this time, Brown Brown's Price To Sales Ratio is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Brown Brown's earnings, one of the primary drivers of an investment's value.Brown Brown's Earnings Breakdown by Geography
Brown Profit Margin vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Brown Brown |
| = | 7.03 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Brown Brown |
| = | 0.23 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Brown Profit Margin Comparison
Brown Brown is currently under evaluation in profit margin category among its peers.
Brown Brown Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Brown Brown, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brown Brown will eventually generate negative long term returns. The profitability progress is the general direction of Brown Brown's change in net profit over the period of time. It can combine multiple indicators of Brown Brown, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -19.1 M | -18.1 M | |
| Operating Income | 1.1 B | 1.2 B | |
| Income Before Tax | 1.1 B | 1.2 B | |
| Total Other Income Expense Net | 8.9 M | 8.5 M | |
| Net Income | 870.5 M | 914 M | |
| Income Tax Expense | 275.6 M | 289.4 M | |
| Net Income Applicable To Common Shares | 758 M | 795.9 M | |
| Net Income From Continuing Ops | 747 M | 397.8 M | |
| Interest Income | 162.4 M | 170.5 M | |
| Net Interest Income | -195.4 M | -185.6 M | |
| Change To Netincome | 41.3 M | 42.1 M | |
| Net Income Per Share | 3.11 | 3.27 | |
| Income Quality | 1.16 | 1.67 | |
| Net Income Per E B T | 0.76 | 0.50 |
Brown Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Brown Brown. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Brown Brown position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Brown Brown's important profitability drivers and their relationship over time.
Use Brown Brown in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brown Brown position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brown Brown will appreciate offsetting losses from the drop in the long position's value.Brown Brown Pair Trading
Brown Brown Pair Trading Analysis
The ability to find closely correlated positions to Brown Brown could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brown Brown when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brown Brown - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brown Brown to buy it.
The correlation of Brown Brown is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brown Brown moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brown Brown moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brown Brown can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Brown Brown position
In addition to having Brown Brown in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Agriculture theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Agriculture Theme or any other thematic opportunities.
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Check out Trending Equities. To learn how to invest in Brown Stock, please use our How to Invest in Brown Brown guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
To fully project Brown Brown's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Brown Brown at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Brown Brown's income statement, its balance sheet, and the statement of cash flows.