BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
NYSE:BR - New York Stock Exchange, Inc. - US11133T1034 - Common Stock - Currency: USD
BR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the IT Services industry. BR scores excellent on profitability, but there are some minor concerns on its financial health. BR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BR had positive earnings in the past year.
In the past year BR had a positive cash flow from operations.
In the past 5 years BR has always been profitable.
Each year in the past 5 years BR had a positive operating cash flow.
1.2 Ratios
BR's Return On Assets of 9.22% is amongst the best of the industry. BR outperforms 80.25% of its industry peers.
The Return On Equity of BR (34.07%) is better than 95.06% of its industry peers.
BR's Return On Invested Capital of 12.16% is fine compared to the rest of the industry. BR outperforms 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BR is in line with the industry average of 10.72%.
The 3 year average ROIC (11.13%) for BR is below the current ROIC(12.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.22% | ||
| ROE | 34.07% | ||
| ROIC | 12.16% |
ROA(3y)7.58%
ROA(5y)7.79%
ROE(3y)29.48%
ROE(5y)30.61%
ROIC(3y)11.13%
ROIC(5y)11.06%
1.3 Margins
BR has a better Profit Margin (11.36%) than 83.95% of its industry peers.
In the last couple of years the Profit Margin of BR has remained more or less at the same level.
BR has a Operating Margin of 16.30%. This is amongst the best in the industry. BR outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of BR has remained more or less at the same level.
BR has a Gross Margin (30.25%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 11.36% | ||
| GM | 30.25% |
OM growth 3Y4.77%
OM growth 5Y0.88%
PM growth 3Y-0.72%
PM growth 5Y-0.59%
GM growth 3Y1.42%
GM growth 5Y1.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BR is still creating some value.
The number of shares outstanding for BR has been reduced 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 4.65. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
BR has a Altman-Z score of 4.65. This is in the better half of the industry: BR outperforms 72.84% of its industry peers.
The Debt to FCF ratio of BR is 4.03, which is a neutral value as it means it would take BR, 4.03 years of fcf income to pay off all of its debts.
BR has a Debt to FCF ratio (4.03) which is comparable to the rest of the industry.
BR has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BR (1.64) is worse than 72.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 4.65 |
ROIC/WACC1.32
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.35 indicates that BR should not have too much problems paying its short term obligations.
BR has a Current ratio of 1.35. This is in the lower half of the industry: BR underperforms 61.73% of its industry peers.
BR has a Quick Ratio of 1.35. This is a normal value and indicates that BR is financially healthy and should not expect problems in meeting its short term obligations.
BR has a Quick ratio (1.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.03% over the past year.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.73% in the past year.
BR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.33% yearly.
EPS 1Y (TTM)14.03%
EPS 3Y11%
EPS 5Y10.68%
EPS Q2Q%69.57%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y9.22%
Revenue growth 5Y8.33%
Sales Q2Q%13.11%
3.2 Future
BR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.85% yearly.
Based on estimates for the next years, BR will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y14.16%
EPS Next 2Y11.7%
EPS Next 3Y11.3%
EPS Next 5Y10.85%
Revenue Next Year6.56%
Revenue Next 2Y5.9%
Revenue Next 3Y5.78%
Revenue Next 5Y5.74%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.45 indicates a quite expensive valuation of BR.
BR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BR to the average of the S&P500 Index (28.29), we can say BR is valued inline with the index average.
A Price/Forward Earnings ratio of 24.42 indicates a rather expensive valuation of BR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BR is on the same level as its industry peers.
BR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.45 | ||
| Fwd PE | 24.42 |
4.2 Price Multiples
BR's Enterprise Value to EBITDA is on the same level as the industry average.
BR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.39 | ||
| EV/EBITDA | 21.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BR may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)2.66
EPS Next 2Y11.7%
EPS Next 3Y11.3%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.54%.
Compared to an average industry Dividend Yield of 3.23, BR pays a better dividend. On top of this BR pays more dividend than 82.72% of the companies listed in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
On average, the dividend of BR grows each year by 11.36%, which is quite nice.
BR has paid a dividend for at least 10 years, which is a reliable track record.
BR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.36%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
BR pays out 50.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
BR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.68%
EPS Next 2Y11.7%
EPS Next 3Y11.3%
235.85
+0.56 (+0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.15%
Inst Owner Change0.01%
Ins Owners0.5%
Ins Owner Change-5.3%
Market Cap27.60B
Analysts75.29
Price Target245.03 (3.89%)
Short Float %0.81%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend3.14
Dividend Growth(5Y)11.36%
DP50.68%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.46%
Min EPS beat(2)0.09%
Max EPS beat(2)2.83%
EPS beat(4)2
Avg EPS beat(4)-0.71%
Min EPS beat(4)-3.16%
Max EPS beat(4)2.83%
EPS beat(8)5
Avg EPS beat(8)0.68%
EPS beat(12)6
Avg EPS beat(12)-0.03%
EPS beat(16)8
Avg EPS beat(16)0.03%
Revenue beat(2)0
Avg Revenue beat(2)-3.87%
Min Revenue beat(2)-6.88%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-4.16%
Min Revenue beat(4)-6.88%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-3.4%
Revenue beat(12)2
Avg Revenue beat(12)-3.12%
Revenue beat(16)6
Avg Revenue beat(16)-1.77%
PT rev (1m)0%
PT rev (3m)5.62%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-2.64%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.45 | ||
| Fwd PE | 24.42 | ||
| P/S | 4.13 | ||
| P/FCF | 30.39 | ||
| P/OCF | 26.55 | ||
| P/B | 12.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.92 |
EPS(TTM)8.29
EY3.51%
EPS(NY)9.66
Fwd EY4.09%
FCF(TTM)7.76
FCFY3.29%
OCF(TTM)8.88
OCFY3.77%
SpS57.11
BVpS19.04
TBVpS-22.33
PEG (NY)2.01
PEG (5Y)2.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.22% | ||
| ROE | 34.07% | ||
| ROCE | 15.31% | ||
| ROIC | 12.16% | ||
| ROICexc | 12.68% | ||
| ROICexgc | 43.59% | ||
| OM | 16.3% | ||
| PM (TTM) | 11.36% | ||
| GM | 30.25% | ||
| FCFM | 13.59% |
ROA(3y)7.58%
ROA(5y)7.79%
ROE(3y)29.48%
ROE(5y)30.61%
ROIC(3y)11.13%
ROIC(5y)11.06%
ROICexc(3y)11.61%
ROICexc(5y)11.84%
ROICexgc(3y)63.11%
ROICexgc(5y)57.7%
ROCE(3y)14.01%
ROCE(5y)13.92%
ROICexcg growth 3Y6.75%
ROICexcg growth 5Y-7.68%
ROICexc growth 3Y14.68%
ROICexc growth 5Y-7.68%
OM growth 3Y4.77%
OM growth 5Y0.88%
PM growth 3Y-0.72%
PM growth 5Y-0.59%
GM growth 3Y1.42%
GM growth 5Y1.05%
F-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 40.7% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 73.61% | ||
| Profit Quality | 119.64% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 4.65 |
F-Score8
WACC9.19%
ROIC/WACC1.32
Cap/Depr(3y)27.48%
Cap/Depr(5y)35.63%
Cap/Sales(3y)1.42%
Cap/Sales(5y)1.69%
Profit Quality(3y)107.48%
Profit Quality(5y)105.79%
High Growth Momentum
Growth
EPS 1Y (TTM)14.03%
EPS 3Y11%
EPS 5Y10.68%
EPS Q2Q%69.57%
EPS Next Y14.16%
EPS Next 2Y11.7%
EPS Next 3Y11.3%
EPS Next 5Y10.85%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y9.22%
Revenue growth 5Y8.33%
Sales Q2Q%13.11%
Revenue Next Year6.56%
Revenue Next 2Y5.9%
Revenue Next 3Y5.78%
Revenue Next 5Y5.74%
EBIT growth 1Y7.46%
EBIT growth 3Y14.44%
EBIT growth 5Y9.28%
EBIT Next Year28.75%
EBIT Next 3Y14.17%
EBIT Next 5Y10.85%
FCF growth 1Y139.25%
FCF growth 3Y20.48%
FCF growth 5Y11.62%
OCF growth 1Y127.71%
OCF growth 3Y18.17%
OCF growth 5Y11.35%