Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.
Above average. Brown & Brown scores higher than 61% of the 1,794 companies Ryufin scores.
Carried by valuation and return on new capital, held back by capital allocation and the balance sheet.
Financial Services median 63 · all companies 57
26% of the score
Brown & Brown is valued at 15.9x its operating profit before acquisition amortisation (EBITA), including debt: an ordinary multiple.
18% of the score
Over 7 years the business earned 9.5% a year after tax on the capital it uses.
16% of the score
For every dollar of operating profit earned over 6 years, yearly profit grew by 13 cents. New capital earned 6.3%, and 210% of profit went back into the business.
14% of the score
How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.
12% of the score
Today's operating margin of 28% is 1.00x its normal 28%: close to its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.
8% of the score
What the debt weighs against the profit that has to carry it.
6% of the score
Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.
Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.
Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there.
The closest names by size in the same industry