BROADRIDGE FINANCIAL SOLUTIO (BR)
US11133T1034 - Common Stock
Overall BR gets a fundamental rating of 5 out of 10. We evaluated BR against 84 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
In the past year BR was profitable.
BR had a positive operating cash flow in the past year.
BR had positive earnings in each of the past 5 years.
In the past 5 years BR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.57%, BR is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
With an excellent Return On Equity value of 31.14%, BR belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
BR has a Return On Invested Capital of 11.31%. This is amongst the best in the industry. BR outperforms 80.49% 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 9.59%.
The last Return On Invested Capital (11.31%) for BR is above the 3 year average (11.13%), which is a sign of increasing profitability.
| 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 75.61% of the companies in the same industry.
BR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 15.44%, BR belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
BR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 29.64%, BR is doing worse than 63.41% of the companies in the same industry.
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 just above the Cost of Capital (WACC), which means it is creating some 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
BR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.60 indicates that BR is not in any danger for bankruptcy at the moment.
BR has a Altman-Z score of 4.60. This is in the better half of the industry: BR outperforms 67.07% of its industry peers.
The Debt to FCF ratio of BR is 4.16, which is a neutral value as it means it would take BR, 4.16 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.16, BR perfoms like the industry average, outperforming 58.54% 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.
With a Debt to Equity ratio value of 1.63, BR is not doing good in the industry: 74.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 4.6 |
ROIC/WACC1.07
WACC10.55%
2.3 Liquidity
A Current Ratio of 1.39 indicates that BR should not have too much problems paying its short term obligations.
BR's Current ratio of 1.39 is in line compared to the rest of the industry. BR outperforms 41.46% of its industry peers.
A Quick Ratio of 1.39 indicates that BR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.39, BR is in line with its industry, outperforming 42.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.37% 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 10.68% yearly.
Looking at the last year, BR shows a small growth in Revenue. The Revenue has grown by 4.67% in the last year.
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
BR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.65% yearly.
Based on estimates for the next years, BR will show a small growth in Revenue. The Revenue will grow by 5.16% on average per year.
EPS Next Y13.3%
EPS Next 2Y11.53%
EPS Next 3Y11.08%
EPS Next 5Y10.65%
Revenue Next Year5.79%
Revenue Next 2Y5.61%
Revenue Next 3Y5.39%
Revenue Next 5Y5.16%
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 29.73, the valuation of BR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BR is on the same level as its industry peers.
BR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 23.63, BR is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BR is valued a bit cheaper than 60.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BR to the average of the S&P500 Index (23.82), we can say BR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 23.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BR is on the same level as its industry peers.
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 | 30.84 | ||
| EV/EBITDA | 22.39 |
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)2.24
PEG (5Y)2.78
EPS Next 2Y11.53%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.55%.
BR's Dividend Yield is rather good when compared to the industry average which is at 2.85. BR pays more dividend than 89.02% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, BR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of BR is nicely growing with an annual growth rate of 11.36%!
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 Years16
Div Non Decr Years16
5.3 Sustainability
BR pays out 54.73% of its income as dividend. 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 2Y11.53%
EPS Next 3Y11.08%
BROADRIDGE FINANCIAL SOLUTIO
NYSE:BR (11/21/2024, 8:15:53 PM)
After market: 227.47 0 (0%)227.47
+2.08 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 23.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.24
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.57% | ||
| ROE | 31.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.44% | ||
| PM (TTM) | 10.57% | ||
| GM | 29.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.37%
EPS 3Y11%
EPS 5Y
EPS Q2Q%
EPS Next Y13.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.67%
Revenue growth 3Y9.22%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y