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Why the quality investor may take a look at BROADRIDGE FINANCIAL SOLUTIO (NYSE:BR).

By Mill Chart

Last update: Jan 3, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BROADRIDGE FINANCIAL SOLUTIO (NYSE:BR) is suited for quality investing. Investors should of course do their own research, but we spotted BROADRIDGE FINANCIAL SOLUTIO showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:BR.

  • Over the past 5 years, BROADRIDGE FINANCIAL SOLUTIO has experienced impressive revenue growth, with 6.96% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • BROADRIDGE FINANCIAL SOLUTIO demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 38.52% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • BROADRIDGE FINANCIAL SOLUTIO maintains a healthy Debt/Free Cash Flow Ratio of 4.14, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • BROADRIDGE FINANCIAL SOLUTIO demonstrates consistent Profit Quality over the past 5 years, with a strong 101.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • 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.
  • The EBIT 5-year growth of BROADRIDGE FINANCIAL SOLUTIO has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for NYSE:BR?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, BR scores 5 out of 10 in our fundamental rating. BR was compared to 87 industry peers in the IT Services industry. While BR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BR is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of BR contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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