BROADRIDGE FINANCIAL SOLUTIO (BR)
US11133T1034 - Common Stock
Overall BR gets a fundamental rating of 5 out of 10. We evaluated BR against 83 industry peers in the IT Services industry. BR scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, BR is valued expensive at the moment.
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 has a Return On Assets of 8.57%. This is in the better half of the industry: BR outperforms 79.01% of its industry peers.
BR has a Return On Equity of 31.14%. This is amongst the best in the industry. BR outperforms 95.06% of its industry peers.
BR has a Return On Invested Capital of 11.31%. This is amongst the best in the industry. BR outperforms 80.25% 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 9.40%.
The 3 year average ROIC (11.13%) for BR is below the current ROIC(11.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.57% | ||
| ROE | 31.14% | ||
| ROIC | 11.31% |
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
With a decent Profit Margin value of 10.57%, BR is doing good in the industry, outperforming 76.54% of the companies in the same industry.
In the last couple of years the Profit Margin of BR has remained more or less at the same level.
The Operating Margin of BR (15.44%) is better than 86.42% 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 worse Gross Margin (29.64%) than 62.96% of its industry peers.
BR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 10.57% | ||
| GM | 29.64% |
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
BR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BR has been reduced compared to 1 year ago.
Compared to 5 years ago, BR has more shares outstanding
Compared to 1 year ago, BR has an improved debt to assets ratio.
2.2 Solvency
BR has an Altman-Z score of 4.60. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
BR's Altman-Z score of 4.60 is fine compared to the rest of the industry. BR outperforms 69.14% of its industry peers.
BR has a debt to FCF ratio of 4.16. This is a neutral value as BR would need 4.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.16, BR is in line with its industry, outperforming 55.56% of the companies in the same industry.
BR has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.63, BR is doing worse than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 4.6 |
ROIC/WACC0.98
WACC11.6%
2.3 Liquidity
BR has a Current Ratio of 1.39. 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 Current ratio (1.39) which is in line with its industry peers.
BR has a Quick Ratio of 1.39. 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 (1.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
BR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.37%.
Measured over the past years, BR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.68% on average per year.
BR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
The Revenue has been growing by 8.33% on average over the past years. This is quite good.
EPS 1Y (TTM)5.37%
EPS 3Y11%
EPS 5Y10.68%
EPS Q2Q%-8.26%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y9.22%
Revenue growth 5Y8.33%
Sales Q2Q%-0.57%
3.2 Future
Based on estimates for the next years, BR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.81% on average per year.
BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y13.53%
EPS Next 2Y11.67%
EPS Next 3Y11.19%
EPS Next 5Y9.81%
Revenue Next Year6%
Revenue Next 2Y5.71%
Revenue Next 3Y5.48%
Revenue Next 5Y5.08%
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
BR is valuated quite expensively with a Price/Earnings ratio of 29.54.
Compared to the rest of the industry, the Price/Earnings ratio of BR is on the same level as its industry peers.
BR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
BR is valuated rather expensively with a Price/Forward Earnings ratio of 23.41.
60.49% of the companies in the same industry are more expensive than BR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.83. BR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
BR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.64 | ||
| EV/EBITDA | 22.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BR does not grow enough to justify the current Price/Earnings ratio.
BR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)2.77
EPS Next 2Y11.67%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.57%, BR has a reasonable but not impressive dividend return.
BR's Dividend Yield is rather good when compared to the industry average which is at 2.74. BR pays more dividend than 87.65% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, BR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of BR is nicely growing with an annual growth rate of 11.36%!
BR has been paying a dividend for at least 10 years, so it has 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
54.73% of the earnings are spent on dividend by BR. This is a bit on the high side, but may be sustainable.
The dividend of BR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.73%
EPS Next 2Y11.67%
EPS Next 3Y11.19%
BROADRIDGE FINANCIAL SOLUTIO
NYSE:BR (12/20/2024, 8:04:01 PM)
After market: 226.01 0 (0%)226.01
+1.83 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.29%
Inst Owner Change-0.58%
Ins Owners0.5%
Ins Owner Change2.99%
Market Cap26.42B
Analysts75.29
Price Target231.27 (2.33%)
Short Float %0.79%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Dividend Growth(5Y)11.36%
DP54.73%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.25%
Min EPS beat(2)-2.59%
Max EPS beat(2)0.09%
EPS beat(4)2
Avg EPS beat(4)-1.4%
Min EPS beat(4)-3.16%
Max EPS beat(4)0.09%
EPS beat(8)4
Avg EPS beat(8)0.07%
EPS beat(12)5
Avg EPS beat(12)-0.55%
EPS beat(16)8
Avg EPS beat(16)-0.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.32%
Min Revenue beat(2)-6.88%
Max Revenue beat(2)-3.76%
Revenue beat(4)0
Avg Revenue beat(4)-4.62%
Min Revenue beat(4)-6.88%
Max Revenue beat(4)-2.7%
Revenue beat(8)1
Avg Revenue beat(8)-4.14%
Revenue beat(12)3
Avg Revenue beat(12)-2.87%
Revenue beat(16)7
Avg Revenue beat(16)-1.69%
PT rev (1m)4.12%
PT rev (3m)4.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.66%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.95%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 23.41 | ||
| P/S | 4.07 | ||
| P/FCF | 30.64 | ||
| P/OCF | 26.61 | ||
| P/B | 11.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.45 |
EPS(TTM)7.65
EY3.38%
EPS(NY)9.65
Fwd EY4.27%
FCF(TTM)7.38
FCFY3.26%
OCF(TTM)8.49
OCFY3.76%
SpS55.6
BVpS18.88
TBVpS-21.99
PEG (NY)2.18
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.57% | ||
| ROE | 31.14% | ||
| ROCE | 14.24% | ||
| ROIC | 11.31% | ||
| ROICexc | 11.8% | ||
| ROICexgc | 40.36% | ||
| OM | 15.44% | ||
| PM (TTM) | 10.57% | ||
| GM | 29.64% | ||
| FCFM | 13.27% |
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-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.16 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 40.79% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 6.88 | ||
| Cash Conversion | 75.01% | ||
| Profit Quality | 125.49% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 4.6 |
F-Score7
WACC11.6%
ROIC/WACC0.98
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)5.37%
EPS 3Y11%
EPS 5Y10.68%
EPS Q2Q%-8.26%
EPS Next Y13.53%
EPS Next 2Y11.67%
EPS Next 3Y11.19%
EPS Next 5Y9.81%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y9.22%
Revenue growth 5Y8.33%
Sales Q2Q%-0.57%
Revenue Next Year6%
Revenue Next 2Y5.71%
Revenue Next 3Y5.48%
Revenue Next 5Y5.08%
EBIT growth 1Y0.58%
EBIT growth 3Y14.44%
EBIT growth 5Y9.28%
EBIT Next Year27.56%
EBIT Next 3Y13.07%
EBIT Next 5Y10.03%
FCF growth 1Y184.05%
FCF growth 3Y20.48%
FCF growth 5Y11.62%
OCF growth 1Y165.24%
OCF growth 3Y18.17%
OCF growth 5Y11.35%