In this article we will dive into BROADRIDGE FINANCIAL SOLUTIO (NYSE:BR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BROADRIDGE FINANCIAL SOLUTIO showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Some of the quality metrics of NYSE:BR highlighted
BROADRIDGE FINANCIAL SOLUTIO has shown strong performance in revenue growth over the past 5 years, with a 6.96% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
The ROIC excluding cash and goodwill of BROADRIDGE FINANCIAL SOLUTIO stands at 38.52%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
The Debt/Free Cash Flow Ratio of BROADRIDGE FINANCIAL SOLUTIO stands at 4.14, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
The Profit Quality (5-year) of BROADRIDGE FINANCIAL SOLUTIO stands at 101.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
The 5-year EBIT growth of BROADRIDGE FINANCIAL SOLUTIO has been remarkable, with 9.5% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
BROADRIDGE FINANCIAL SOLUTIO has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.
What is the full fundamental picture of NYSE:BR telling us.
At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.
We assign a fundamental rating of 6 out of 10 to BR. BR was compared to 88 industry peers in the IT Services industry. BR scores excellent on profitability, but there are some minor concerns on its financial health. BR has a correct valuation and a medium growth rate.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.