BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
NYSE:BR - New York Stock Exchange, Inc. - US11133T1034 - Common Stock - Currency: USD
Overall BR gets a fundamental rating of 5 out of 10. We evaluated BR against 82 industry peers in the IT Services industry. While BR has a great profitability rating, there are some minor concerns on its financial health. BR is valied quite expensively at the moment, while 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.
BR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BR (8.57%) is better than 78.48% of its industry peers.
The Return On Equity of BR (31.14%) is better than 94.94% of its industry peers.
With a decent Return On Invested Capital value of 11.31%, BR is doing good in the industry, outperforming 79.75% of the companies in the same industry.
BR had an Average Return On Invested Capital over the past 3 years of 11.13%. This is in line with the industry average of 9.86%.
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
BR has a better Profit Margin (10.57%) than 75.95% of its industry peers.
In the last couple of years the Profit Margin of BR has remained more or less at the same level.
The Operating Margin of BR (15.44%) is better than 86.08% of its industry peers.
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 63.29% 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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BR has less shares outstanding
Compared to 5 years ago, BR has more shares outstanding
The debt/assets ratio for BR has been reduced compared to a year ago.
2.2 Solvency
BR has an Altman-Z score of 4.73. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.73, BR is doing good in the industry, outperforming 70.89% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 4.16, BR perfoms like the industry average, outperforming 55.70% of the companies in the same industry.
A Debt/Equity ratio of 1.63 is on the high side and indicates that BR has dependencies on debt financing.
The Debt to Equity ratio of BR (1.63) is worse than 73.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 4.73 |
ROIC/WACC0.98
WACC11.5%
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.
A Quick Ratio of 1.39 indicates that BR should not have too much problems paying its short term obligations.
The Quick ratio of BR (1.39) is comparable to the rest of the 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.
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.
The Revenue is expected to grow by 5.08% on average over the next years.
EPS Next Y13.53%
EPS Next 2Y11.67%
EPS Next 3Y11.19%
EPS Next 5Y9.81%
Revenue Next Year5.95%
Revenue Next 2Y5.67%
Revenue Next 3Y5.49%
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
Based on the Price/Earnings ratio of 31.03, 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.
Compared to an average S&P500 Price/Earnings ratio of 28.58, BR is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.59, the valuation of BR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BR is valued a bit cheaper than the industry average as 63.29% of the companies are valued more expensively.
BR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 24.59 |
4.2 Price Multiples
BR's Enterprise Value to EBITDA is on the same level as 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 | 32.18 | ||
| EV/EBITDA | 23.4 |
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 decent profitability rating of BR may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)2.9
EPS Next 2Y11.67%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, 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 2.87. BR pays more dividend than 87.34% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, BR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 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 (1/24/2025, 7:00:00 PM)
After market: 237.35 0 (0%)237.35
+0.59 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.29%
Inst Owner Change-0.28%
Ins Owners0.5%
Ins Owner Change3.05%
Market Cap27.74B
Analysts75.29
Price Target232 (-2.25%)
Short Float %0.9%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend3.14
Dividend Growth(5Y)11.36%
DP54.73%
Div Incr Years17
Div Non Decr Years17
Ex-DateN/A
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)0.31%
PT rev (3m)4.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.66%
EPS NY rev (1m)0%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.95%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 24.59 | ||
| P/S | 4.27 | ||
| P/FCF | 32.18 | ||
| P/OCF | 27.95 | ||
| P/B | 12.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.4 |
EPS(TTM)7.65
EY3.22%
EPS(NY)9.65
Fwd EY4.07%
FCF(TTM)7.38
FCFY3.11%
OCF(TTM)8.49
OCFY3.58%
SpS55.6
BVpS18.88
TBVpS-21.99
PEG (NY)2.29
PEG (5Y)2.9
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 | 4.73 |
F-Score7
WACC11.5%
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 Year5.95%
Revenue Next 2Y5.67%
Revenue Next 3Y5.49%
Revenue Next 5Y5.08%
EBIT growth 1Y0.58%
EBIT growth 3Y14.44%
EBIT growth 5Y9.28%
EBIT Next Year28.68%
EBIT Next 3Y13.65%
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%