BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
NYSE:BR - New York Stock Exchange, Inc. - US11133T1034 - Common Stock - Currency: USD
Taking everything into account, BR scores 5 out of 10 in our fundamental rating. BR was compared to 82 industry peers in the IT Services industry. BR has an excellent profitability rating, 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.
BR had a positive operating cash flow in the past year.
Each year in the past 5 years BR has 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 (9.50%) is better than 80.49% of its industry peers.
BR has a better Return On Equity (33.10%) than 95.12% of its industry peers.
BR has a better Return On Invested Capital (12.78%) than 80.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 21.64%.
The last Return On Invested Capital (12.78%) for BR is above the 3 year average (11.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 33.1% | ||
| ROIC | 12.78% |
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
Looking at the Profit Margin, with a value of 11.65%, BR belongs to the top of the industry, outperforming 85.37% 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 (16.72%) is better than 87.80% of its industry peers.
In the last couple of years the Operating Margin of BR has remained more or less at the same level.
With a Gross Margin value of 30.41%, BR is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
BR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 11.65% | ||
| GM | 30.41% |
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.
Compared to 1 year ago, BR has less shares outstanding
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 4.73. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
BR's Altman-Z score of 4.73 is fine compared to the rest of the industry. BR outperforms 70.73% of its industry peers.
The Debt to FCF ratio of BR is 3.19, which is a good value as it means it would take BR, 3.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, BR is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that BR has dependencies on debt financing.
BR's Debt to Equity ratio of 1.44 is on the low side compared to the rest of the industry. BR is outperformed by 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.36
WACC9.41%
2.3 Liquidity
BR has a Current Ratio of 1.32. 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 of 1.32. This is in the lower half of the industry: BR underperforms 63.41% of its industry peers.
A Quick Ratio of 1.32 indicates that BR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.32, BR is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
BR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.09%, which is quite good.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
BR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.73%.
Measured over the past years, BR shows a quite strong growth in Revenue. The Revenue has been growing by 8.33% on average per year.
EPS 1Y (TTM)14.09%
EPS 3Y11%
EPS 5Y10.68%
EPS Q2Q%9.42%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y9.22%
Revenue growth 5Y8.33%
Sales Q2Q%4.95%
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 10.71% on average per year.
BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.50% yearly.
EPS Next Y12.96%
EPS Next 2Y10.93%
EPS Next 3Y10.48%
EPS Next 5Y10.71%
Revenue Next Year5.5%
Revenue Next 2Y5.16%
Revenue Next 3Y5.2%
Revenue Next 5Y5.5%
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.
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 27.67, BR can be considered very expensive at the moment.
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 27.30, BR is valued at the same level.
The Price/Forward Earnings ratio is 24.69, which indicates a rather expensive current valuation of BR.
BR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, BR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.67 | ||
| Fwd PE | 24.69 |
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 | 25.63 | ||
| EV/EBITDA | 21.13 |
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)2.13
PEG (5Y)2.59
EPS Next 2Y10.93%
EPS Next 3Y10.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, BR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.48, BR pays a better dividend. On top of this BR pays more dividend than 82.93% of the companies listed in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
On average, the dividend of BR grows each year by 11.36%, which is quite nice.
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)11.36%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
49.90% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP49.9%
EPS Next 2Y10.93%
EPS Next 3Y10.48%
235.18
-3.41 (-1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change-0.01%
Ins Owners0.44%
Ins Owner Change-6.49%
Market Cap27.62B
Analysts76.67
Price Target260.31 (10.69%)
Short Float %1.09%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend3.14
Dividend Growth(5Y)11.36%
DP49.9%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.25%
Min EPS beat(2)-2.34%
Max EPS beat(2)2.83%
EPS beat(4)2
Avg EPS beat(4)-0.5%
Min EPS beat(4)-2.59%
Max EPS beat(4)2.83%
EPS beat(8)5
Avg EPS beat(8)0.59%
EPS beat(12)5
Avg EPS beat(12)-0.65%
EPS beat(16)7
Avg EPS beat(16)-0.23%
Revenue beat(2)0
Avg Revenue beat(2)-3.24%
Min Revenue beat(2)-5.62%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-4.28%
Min Revenue beat(4)-6.88%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-3.74%
Revenue beat(12)2
Avg Revenue beat(12)-3.33%
Revenue beat(16)5
Avg Revenue beat(16)-2.45%
PT rev (1m)0%
PT rev (3m)6.24%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-3.34%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.67 | ||
| Fwd PE | 24.69 | ||
| P/S | 4.08 | ||
| P/FCF | 25.63 | ||
| P/OCF | 23.16 | ||
| P/B | 11.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.13 |
EPS(TTM)8.5
EY3.61%
EPS(NY)9.52
Fwd EY4.05%
FCF(TTM)9.18
FCFY3.9%
OCF(TTM)10.15
OCFY4.32%
SpS57.62
BVpS20.28
TBVpS-20.45
PEG (NY)2.13
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 33.1% | ||
| ROCE | 16.08% | ||
| ROIC | 12.78% | ||
| ROICexc | 13.38% | ||
| ROICexgc | 46.49% | ||
| OM | 16.72% | ||
| PM (TTM) | 11.65% | ||
| GM | 30.41% | ||
| FCFM | 15.92% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 35.54% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 8.16 | ||
| Cash Conversion | 81.98% | ||
| Profit Quality | 136.68% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 4.73 |
F-Score8
WACC9.41%
ROIC/WACC1.36
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)14.09%
EPS 3Y11%
EPS 5Y10.68%
EPS Q2Q%9.42%
EPS Next Y12.96%
EPS Next 2Y10.93%
EPS Next 3Y10.48%
EPS Next 5Y10.71%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y9.22%
Revenue growth 5Y8.33%
Sales Q2Q%4.95%
Revenue Next Year5.5%
Revenue Next 2Y5.16%
Revenue Next 3Y5.2%
Revenue Next 5Y5.5%
EBIT growth 1Y9.86%
EBIT growth 3Y14.44%
EBIT growth 5Y9.28%
EBIT Next Year22.07%
EBIT Next 3Y13.31%
EBIT Next 5Y10.76%
FCF growth 1Y121.75%
FCF growth 3Y20.48%
FCF growth 5Y11.62%
OCF growth 1Y116.25%
OCF growth 3Y18.17%
OCF growth 5Y11.35%