Brown & Brown Inc. (BRO) exhibits 41.0% gross margins and 4.7% return on invested capital within Financials (Specialty Insurers), balanced against a 21.1x enterprise multiple and 6.6% implied options volatility.
Sustained 41.0% gross profitability converts into 21.8% operating margin and 4.7% ROIC, outpacing sector cost of capital.
ROIC: 4.7% // GM: 41.0%YoY revenue trajectory of +22.8% paired with 6.14% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +22.8% // FCF YLD: 6.14%Altman Z-Score of 1.62 and Piotroski F-Score of 9/9 indicate low near-term refinancing stress.
ALTMAN Z: 1.62 // F-SCORE: 9/9Trading at 21.3x trailing P/E (17.9x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 21.3x // EV/EBITDA: 21.1xOptions market prices a ±6.6% implied move with a 0.80 put/call ratio around $66.00 max pain.
IMPL MOVE: ±6.6% // P/C: 0.80Elevated industry capital intensity and customer concentration in Specialty Insurers require continuous execution to defend 17.9% net margins.
NET MARGIN: 17.9% // D/E: 0.44x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
Unblur the exact $50,000 delta-adjusted ETF/options hedge ratio for BRO & activate live FRED threshold breach alerts.