BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - NYSE:BR - US11133T1034 - Common Stock
217.49 USD
-1.09 (-0.5%)
217.49 USD
0 (0%)
BR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. BR scores excellent on profitability, but there are 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
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
With an excellent Return On Assets value of 9.82%, BR belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
With an excellent Return On Equity value of 31.62%, BR belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
The Return On Invested Capital of BR (14.13%) is better than 85.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 27.96%.
The 3 year average ROIC (12.91%) for BR is below the current ROIC(14.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 31.62% | ||
| ROIC | 14.13% |
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
BR has a better Profit Margin (12.19%) than 88.24% of its industry peers.
BR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.25%, BR belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
In the last couple of years the Operating Margin of BR has grown nicely.
BR has a Gross Margin (31.02%) 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 | 17.25% | ||
| PM (TTM) | 12.19% | ||
| GM | 31.02% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BR is still creating some value.
BR has more shares outstanding than it did 1 year ago.
BR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BR has been reduced compared to a year ago.
2.2 Solvency
BR has an Altman-Z score of 4.49. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
BR has a better Altman-Z score (4.49) than 68.24% of its industry peers.
BR has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as BR would need 3.08 years to pay back of all of its debts.
BR has a better Debt to FCF ratio (3.08) than 64.71% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that BR has dependencies on debt financing.
BR has a Debt to Equity ratio of 1.04. This is in the lower half of the industry: BR underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.64
WACC8.62%
2.3 Liquidity
BR has a Current Ratio of 0.98. 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 Current ratio of 0.98. This is in the lower half of the industry: BR underperforms 78.82% of its industry peers.
A Quick Ratio of 0.98 indicates that BR may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, BR is not doing good in the industry: 77.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.43% over the past year.
BR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.19% yearly.
The Revenue has been growing slightly by 5.88% in the past year.
The Revenue has been growing by 8.75% on average over the past years. This is quite good.
EPS 1Y (TTM)18.43%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%51%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
3.2 Future
The Earnings Per Share is expected to grow by 10.64% 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 5.33% yearly.
EPS Next Y12.73%
EPS Next 2Y11.02%
EPS Next 3Y10.83%
EPS Next 5Y10.64%
Revenue Next Year4.96%
Revenue Next 2Y5.09%
Revenue Next 3Y5.25%
Revenue Next 5Y5.33%
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
With a Price/Earnings ratio of 24.01, BR is valued on the expensive side.
BR's Price/Earnings ratio is in line with the industry average.
BR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.67.
With a Price/Forward Earnings ratio of 20.64, BR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as BR.
BR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BR.
The rest of the industry has a similar Price/Free Cash Flow ratio as BR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.03 | ||
| EV/EBITDA | 18.6 |
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.
The excellent profitability rating of BR may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)2.14
EPS Next 2Y11.02%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 2.57, BR pays a better dividend. On top of this BR pays more dividend than 89.41% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, BR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of BR is nicely growing with an annual growth rate of 10.38%!
BR has been paying a dividend for at least 10 years, so it has 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
47.92% of the earnings are spent on dividend by BR. 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.
DP47.92%
EPS Next 2Y11.02%
EPS Next 3Y10.83%
217.49
-1.09 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners93.49%
Inst Owner Change-1.25%
Ins Owners0.42%
Ins Owner Change-0.95%
Market Cap25.39B
Revenue(TTM)6.89B
Net Income(TTM)839.50M
Analysts76.67
Price Target283.17 (30.2%)
Short Float %1.49%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend3.44
Dividend Growth(5Y)10.38%
DP47.92%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.92%
Min EPS beat(2)-2.34%
Max EPS beat(2)-1.49%
EPS beat(4)2
Avg EPS beat(4)-0.23%
Min EPS beat(4)-2.34%
Max EPS beat(4)2.83%
EPS beat(8)4
Avg EPS beat(8)0.37%
EPS beat(12)5
Avg EPS beat(12)-0.61%
EPS beat(16)7
Avg EPS beat(16)-0.14%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-5.62%
Max Revenue beat(2)-2.55%
Revenue beat(4)0
Avg Revenue beat(4)-3.98%
Min Revenue beat(4)-6.88%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-3.43%
Revenue beat(12)1
Avg Revenue beat(12)-3.59%
Revenue beat(16)4
Avg Revenue beat(16)-2.67%
PT rev (1m)0.72%
PT rev (3m)8.78%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)5.58%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 20.64 | ||
| P/S | 3.68 | ||
| P/FCF | 24.03 | ||
| P/OCF | 21.67 | ||
| P/B | 9.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.6 |
EPS(TTM)9.06
EY4.17%
EPS(NY)10.54
Fwd EY4.85%
FCF(TTM)9.05
FCFY4.16%
OCF(TTM)10.04
OCFY4.61%
SpS59.02
BVpS22.75
TBVpS-19.12
PEG (NY)1.89
PEG (5Y)2.14
Graham Number68.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 31.62% | ||
| ROCE | 17.78% | ||
| ROIC | 14.13% | ||
| ROICexc | 15.42% | ||
| ROICexgc | 76.43% | ||
| OM | 17.25% | ||
| PM (TTM) | 12.19% | ||
| GM | 31.02% | ||
| FCFM | 15.33% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 35.11% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 77.26% | ||
| Profit Quality | 125.84% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 4.49 |
F-Score8
WACC8.62%
ROIC/WACC1.64
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 Y12.73%
EPS Next 2Y11.02%
EPS Next 3Y10.83%
EPS Next 5Y10.64%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
Revenue Next Year4.96%
Revenue Next 2Y5.09%
Revenue Next 3Y5.25%
Revenue Next 5Y5.33%
EBIT growth 1Y16.87%
EBIT growth 3Y16.08%
EBIT growth 5Y13.72%
EBIT Next Year30.55%
EBIT Next 3Y12.29%
EBIT Next 5Y11.73%
FCF growth 1Y12%
FCF growth 3Y41.81%
FCF growth 5Y16.16%
OCF growth 1Y10.9%
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 of BROADRIDGE FINANCIAL SOLUTIO (BR) stock?
ChartMill assigns a valuation rating of 3 / 10 to BROADRIDGE FINANCIAL SOLUTIO (BR). This can be considered as Overvalued.
What is the profitability of BR stock?
BROADRIDGE FINANCIAL SOLUTIO (BR) has a profitability rating of 8 / 10.
What is the earnings growth outlook for BROADRIDGE FINANCIAL SOLUTIO?
The Earnings per Share (EPS) of BROADRIDGE FINANCIAL SOLUTIO (BR) is expected to grow by 12.73% in the next year.
Is the dividend of BROADRIDGE FINANCIAL SOLUTIO sustainable?
The dividend rating of BROADRIDGE FINANCIAL SOLUTIO (BR) is 6 / 10 and the dividend payout ratio is 47.92%.