BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BR - US11133T1034 - Common Stock
209.28 USD
-9.36 (-4.28%)
209.28 USD
0 (0%)
Taking everything into account, BR scores 5 out of 10 in our fundamental rating. BR was compared to 88 industry peers in the IT Services industry. BR has an excellent profitability rating, but there are concerns on its financial health. BR is not valued too expensively and it also shows a decent growth rate. BR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year BR was profitable.
- In the past year BR had a positive cash flow from operations.
- BR had positive earnings in each of the past 5 years.
- Each year in the past 5 years BR had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BR (11.14%) is better than 87.50% of its industry peers.
- The Return On Equity of BR (35.11%) is better than 95.45% of its industry peers.
- BR has a better Return On Invested Capital (14.67%) than 88.64% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BR is significantly below the industry average of 29.06%.
- The last Return On Invested Capital (14.67%) for BR is above the 3 year average (12.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 35.11% | ||
| ROIC | 14.67% |
ROA(3y)8.65%
ROA(5y)7.86%
ROE(3y)30.65%
ROE(5y)30.06%
ROIC(3y)12.91%
ROIC(5y)11.08%
1.3 Margins
- The Profit Margin of BR (13.11%) is better than 86.36% of its industry peers.
- In the last couple of years the Profit Margin of BR has grown nicely.
- With an excellent Operating Margin value of 17.62%, BR belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- BR's Operating Margin has improved in the last couple of years.
- BR has a Gross Margin (31.34%) which is in line with its industry peers.
- BR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.62% | ||
| PM (TTM) | 13.11% | ||
| GM | 31.34% |
OM growth 3Y9.03%
OM growth 5Y4.57%
PM growth 3Y8.87%
PM growth 5Y3.6%
GM growth 3Y3.61%
GM growth 5Y2.14%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BR is creating some value.
- The number of shares outstanding for BR has been increased compared to 1 year ago.
- The number of shares outstanding for BR has been increased compared to 5 years ago.
- BR has a better debt/assets ratio than last year.
2.2 Solvency
- BR has an Altman-Z score of 4.58. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
- BR's Altman-Z score of 4.58 is fine compared to the rest of the industry. BR outperforms 75.00% of its industry peers.
- BR has a debt to FCF ratio of 2.68. This is a good value and a sign of high solvency as BR would need 2.68 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.68, BR is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that BR has dependencies on debt financing.
- BR has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: BR underperforms 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.65
WACC8.88%
2.3 Liquidity
- BR has a Current Ratio of 0.93. This is a bad value and indicates that BR is not financially healthy enough and could expect problems in meeting its short term obligations.
- BR has a worse Current ratio (0.93) than 81.82% of its industry peers.
- A Quick Ratio of 0.93 indicates that BR may have some problems paying its short term obligations.
- BR has a worse Quick ratio (0.93) than 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- BR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.43%, which is quite good.
- Measured over the past years, BR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.19% on average per year.
- BR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.57%.
- Measured over the past years, BR shows a quite strong growth in Revenue. The Revenue has been growing by 8.75% on average per year.
EPS 1Y (TTM)18.43%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%51%
Revenue 1Y (TTM)8.57%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
3.2 Future
- The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
- BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
EPS Next Y13.97%
EPS Next 2Y11.09%
EPS Next 3Y10.83%
EPS Next 5Y10.6%
Revenue Next Year5.48%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.35%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.10, the valuation of BR can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of BR indicates a somewhat cheap valuation: BR is cheaper than 60.23% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BR to the average of the S&P500 Index (26.94), we can say BR is valued inline with the index average.
- BR is valuated rather expensively with a Price/Forward Earnings ratio of 19.83.
- Based on the Price/Forward Earnings ratio, BR is valued a bit cheaper than 60.23% of the companies in the same industry.
- BR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
- BR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BR is cheaper than 62.50% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BR indicates a somewhat cheap valuation: BR is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.92 | ||
| EV/EBITDA | 17.43 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of BR may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)2.06
EPS Next 2Y11.09%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.78%, BR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.43, BR pays a better dividend. On top of this BR pays more dividend than 89.77% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, BR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
- On average, the dividend of BR grows each year by 10.38%, which is quite nice.
- BR has paid a dividend for at least 10 years, which is a reliable track record.
- BR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.38%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
- BR pays out 44.54% of its income as dividend. This is a bit on the high side, but may be sustainable.
- BR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP44.54%
EPS Next 2Y11.09%
EPS Next 3Y10.83%
209.28
-9.36 (-4.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)01-29 2026-01-29/bmo
Inst Owners94.61%
Inst Owner Change0.15%
Ins Owners0.41%
Ins Owner Change-0.34%
Market Cap24.43B
Revenue(TTM)7.06B
Net Income(TTM)925.10M
Analysts76.67
Price Target275.2 (31.5%)
Short Float %1.8%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend3.44
Dividend Growth(5Y)10.38%
DP44.54%
Div Incr Years17
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.43%
Min EPS beat(2)-1.49%
Max EPS beat(2)18.35%
EPS beat(4)2
Avg EPS beat(4)4.34%
Min EPS beat(4)-2.34%
Max EPS beat(4)18.35%
EPS beat(8)4
Avg EPS beat(8)1.47%
EPS beat(12)6
Avg EPS beat(12)1.49%
EPS beat(16)7
Avg EPS beat(16)0.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-5.62%
Max Revenue beat(4)0.34%
Revenue beat(8)1
Avg Revenue beat(8)-3.4%
Revenue beat(12)2
Avg Revenue beat(12)-3.48%
Revenue beat(16)4
Avg Revenue beat(16)-2.7%
PT rev (1m)0.05%
PT rev (3m)-2.81%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-7.72%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 19.83 | ||
| P/S | 3.46 | ||
| P/FCF | 19.92 | ||
| P/OCF | 18.24 | ||
| P/B | 9.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.43 |
EPS(TTM)9.06
EY4.33%
EPS(NY)10.55
Fwd EY5.04%
FCF(TTM)10.51
FCFY5.02%
OCF(TTM)11.47
OCFY5.48%
SpS60.44
BVpS22.57
TBVpS-19.73
PEG (NY)1.65
PEG (5Y)2.06
Graham Number67.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 35.11% | ||
| ROCE | 18.47% | ||
| ROIC | 14.67% | ||
| ROICexc | 15.34% | ||
| ROICexgc | 65.82% | ||
| OM | 17.62% | ||
| PM (TTM) | 13.11% | ||
| GM | 31.34% | ||
| FCFM | 17.38% |
ROA(3y)8.65%
ROA(5y)7.86%
ROE(3y)30.65%
ROE(5y)30.06%
ROIC(3y)12.91%
ROIC(5y)11.08%
ROICexc(3y)13.71%
ROICexc(5y)11.69%
ROICexgc(3y)78.85%
ROICexgc(5y)60.78%
ROCE(3y)16.25%
ROCE(5y)13.95%
ROICexgc growth 3Y37.85%
ROICexgc growth 5Y4.62%
ROICexc growth 3Y19.21%
ROICexc growth 5Y-0.93%
OM growth 3Y9.03%
OM growth 5Y4.57%
PM growth 3Y8.87%
PM growth 5Y3.6%
GM growth 3Y3.61%
GM growth 5Y2.14%
F-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 34.03% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 10.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 132.59% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 4.58 |
F-Score8
WACC8.88%
ROIC/WACC1.65
Cap/Depr(3y)31.86%
Cap/Depr(5y)32.62%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.59%
Profit Quality(3y)126.53%
Profit Quality(5y)109.36%
High Growth Momentum
Growth
EPS 1Y (TTM)18.43%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%51%
EPS Next Y13.97%
EPS Next 2Y11.09%
EPS Next 3Y10.83%
EPS Next 5Y10.6%
Revenue 1Y (TTM)8.57%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
Revenue Next Year5.48%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
Revenue Next 5Y5.35%
EBIT growth 1Y23.93%
EBIT growth 3Y16.08%
EBIT growth 5Y13.72%
EBIT Next Year28.58%
EBIT Next 3Y10.91%
EBIT Next 5Y11.58%
FCF growth 1Y37.85%
FCF growth 3Y41.81%
FCF growth 5Y16.16%
OCF growth 1Y38.64%
OCF growth 3Y38.23%
OCF growth 5Y14.38%
BROADRIDGE FINANCIAL SOLUTIO / BR FAQ
What is the ChartMill fundamental rating of BROADRIDGE FINANCIAL SOLUTIO (BR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BR.
What is the valuation status for BR stock?
ChartMill assigns a valuation rating of 4 / 10 to BROADRIDGE FINANCIAL SOLUTIO (BR). This can be considered as Fairly Valued.
What is the profitability of BR stock?
BROADRIDGE FINANCIAL SOLUTIO (BR) has a profitability rating of 8 / 10.
Can you provide the financial health for BR stock?
The financial health rating of BROADRIDGE FINANCIAL SOLUTIO (BR) is 3 / 10.
Can you provide the expected EPS growth for BR stock?
The Earnings per Share (EPS) of BROADRIDGE FINANCIAL SOLUTIO (BR) is expected to grow by 13.97% in the next year.