GICS Sector : Financial Services
BRP Group, Inc.markets and sells insurance products and services in the United States.The company operates through four segments: Middle Market, Specialty, MainStreet, and Medicare.
The Baldwin Group reported robust financial performance for the fourth quarter and full-year 2024, highlighting significant progress across key metrics. In Q4, the company achieved organic revenue growth of 19%, driven by strong contributions from its IAS, UCTS, and MIS segments. Adjusted EBITDA margin expanded by 310 basis points to 19.1%, while adjusted free cash flow surged 97% to $134.9 million. For the full year, organic revenue growth stood at 17%, with adjusted EBITDA margin improving by 200 basis points to 22.5%. Net leverage declined to 4.1 times, reflecting the company's focus on deleveraging. Brad Hale, CFO, noted, "Our Q4 total revenue of $329.9 million and adjusted net income of $32.1 million underscore our ability to deliver strong profitability while investing in growth initiatives."
Publication Date: Mar -02
The company's valuation metrics highlight the market's confidence in its growth trajectory. The Price-to-Book (P/B) ratio of 4.57 indicates a premium, reflecting the market's expectation of continued strong financial performance. The Combined Ratio, a key metric for insurers, improved due to disciplined underwriting and cost management. With a free cash flow yield of 2.18% and return on equity (ROE) of -4.14%, the company is balancing profitability with strategic investments. The enterprise value-to-EBITDA ratio of 26.12 suggests that the market is pricing in future growth, aligning with management's outlook for sustained organic revenue growth in the lower half of its 10-15% target range.
Looking ahead, The Baldwin Group expects Q1 2025 revenue of $410-420 million, with organic growth towards the lower end of its target range. Adjusted EPS is projected to be $0.0.62-0.0.66, reflecting continued margin expansion. The company forecasts full-year 2025 revenue between $1.52 billion and $1.56 billion, with adjusted EBITDA of $345-360 million, implying margin expansion in the lower half of its 25-100 basis point target range. Trevor Baldwin, CEO, emphasized, "We are confident in our ability to sustain double-digit organic growth, improve margins, and reduce net leverage, positioning the company for continued success in 2025 and beyond." Strategic initiatives, such as the launch of a Texas-domiciled reciprocal insurance exchange, are expected to enhance long-term growth and economics for the builder-sourced book, with full benefits anticipated by 2026 or 2027.
BRP Inc. (DOOO) Beats Q3 Earnings and Revenue Estimates
Dec -04
BRP ANNOUNCES THE RENEWAL OF ITS NORMAL COURSE ISSUER BID
Dec -04
BRP PRESENTS ITS THIRD QUARTER RESULTS FOR FISCAL YEAR 2026
Dec -04
BRP Donates More Than $300,000 to Ride Out Intimidation on its Fourth Annual Yellow Day
Nov -28
BRP Will Present its Third Quarter Fiscal Year 2026 Results
Nov -20
Vision Marine Technologies Selects BRP Electrification Engineering Services to Support Their Next Stage of Growth
Nov -05
Here's Why BRP (DOOO) Could be Great Choice for a Bottom Fisher
Nov -04
Is BRP Stock a Buy After Investment Firm QV Investors Initiated a Position?
Oct -31
BRP Group's 12.0% growth in Insurance Advisory is driven by increasing demand for specialized insurance products, expansion into new markets, strategic acquisitions, and a strong sales force. Additionally, the company's investments in digital platforms and data analytics have enhanced its ability to provide tailored solutions to clients, further fueling growth.
BRP Group's 14.0% growth driven by underwriting excellence, capacity expansion, and technology advancements. Underwriting: disciplined risk selection and pricing strategies. Capacity: increased carrier partnerships and expanded product offerings. Technology: investments in data analytics and digital platforms, enhancing operational efficiency and client experience.
Mainstreet Insurance's 11.0% growth is driven by strategic acquisitions, expansion into new markets, and increased adoption of digital platforms. Organic growth is fueled by a strong sales force, cross-selling initiatives, and a diversified product portfolio. Additionally, BRP Group's investment in technology and data analytics enables Mainstreet to better serve clients, driving retention and growth.
BRP Group's Corporate and Other segment growth of 10.0% is driven by strategic M&A, expansion of service offerings, and increased investment in technology and data analytics. Additionally, the company's focus on organic growth initiatives, such as cross-selling and upselling, has contributed to the segment's growth.
BRP Group, Inc. provides insurance distribution services, connecting clients with insurance carriers and products that meet their specific needs.
BRP Group, Inc. offers risk management services, helping clients identify and mitigate potential risks to their business.
BRP Group, Inc. provides employee benefits services, helping clients design and implement benefits programs that attract and retain top talent.
BRP Group, Inc. offers wealth management services, helping clients achieve their financial goals through investment and wealth planning.
BRP Group, Inc. provides specialty insurance services, offering unique insurance products for niche industries and markets.
BRP Group, Inc. operates in a niche market with limited substitutes, but customers may still opt for alternative solutions, hence a medium threat level.
BRP Group, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, resulting in a low threat level.
BRP Group, Inc. relies on a few key suppliers, which gives them some bargaining power, but the company's size and diversification mitigate this threat, resulting in a medium threat level.
The insurance industry is highly regulated, and new entrants face significant barriers to entry, but the threat of new entrants remains high due to the potential for disruption from fintech companies and other innovators.
The insurance industry is highly competitive, with many established players, resulting in a high level of rivalry among companies, including BRP Group, Inc.
| Value | |
|---|---|
| Debt Weight | 74.44% |
| Debt Cost | 7.26% |
| Equity Weight | 25.56% |
| Equity Cost | 11.67% |
| WACC | 8.39% |
| Leverage | 291.18% |
Value: 5.7
Growth: 4.3
Quality: 5.9
Yield: 0.0
Momentum: 6.0
Volatility: 7.7
1-Year Total Return ->
Value: 9.3
Growth: 6.4
Quality: 6.9
Yield: 0.0
Momentum: 3.5
Volatility: 1.0
1-Year Total Return ->
Value: 9.3
Growth: 4.6
Quality: 7.6
Yield: 0.0
Momentum: 4.0
Volatility: 1.0
1-Year Total Return ->
Value: 6.7
Growth: 6.4
Quality: 1.8
Yield: 0.0
Momentum: 5.0
Volatility: 2.7
1-Year Total Return ->
Value: 9.6
Growth: 4.8
Quality: 4.0
Yield: 0.0
Momentum: 0.5
Volatility: 2.0
1-Year Total Return ->
Value: 8.2
Growth: 0.3
Quality: 4.6
Yield: 0.0
Momentum: 5.0
Volatility: 1.7
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