BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BR - US11133T1034 - Common Stock
223.36 USD
+0.45 (+0.2%)
223.36 USD
0 (0%)
Taking everything into account, BR scores 5 out of 10 in our fundamental rating. BR was compared to 88 industry peers in the IT Services industry. BR has an excellent profitability rating, but there are concerns on its financial health. BR is not valued too expensively and it also shows a decent growth rate. Finally BR also has an excellent dividend rating.
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
BR has a Return On Assets of 11.14%. This is amongst the best in the industry. BR outperforms 87.50% of its industry peers.
BR has a better Return On Equity (35.11%) than 95.45% of its industry peers.
The Return On Invested Capital of BR (14.67%) is better than 88.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 28.99%.
The 3 year average ROIC (12.91%) for BR is below the current ROIC(14.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 35.11% | ||
| ROIC | 14.67% |
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
Looking at the Profit Margin, with a value of 13.11%, BR belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Profit Margin of BR has grown nicely.
With an excellent Operating Margin value of 17.62%, BR belongs to the best of the industry, outperforming 90.91% 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 of 31.34%. This is comparable to the rest of the industry: BR outperforms 44.32% of its industry peers.
BR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.62% | ||
| PM (TTM) | 13.11% | ||
| GM | 31.34% |
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
BR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BR has more shares outstanding
BR has more shares outstanding than it did 5 years ago.
BR has a better debt/assets ratio than last year.
2.2 Solvency
BR has an Altman-Z score of 4.75. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.75, BR is in the better half of the industry, outperforming 76.14% of the companies in the same industry.
BR has a debt to FCF ratio of 2.68. This is a good value and a sign of high solvency as BR would need 2.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.68, BR is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
BR has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BR (1.06) is worse than 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 4.75 |
ROIC/WACC1.66
WACC8.85%
2.3 Liquidity
BR has a Current Ratio of 0.93. 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's Current ratio of 0.93 is on the low side compared to the rest of the industry. BR is outperformed by 81.82% of its industry peers.
BR has a Quick Ratio of 0.93. This is a bad value and indicates that BR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BR (0.93) is worse than 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
BR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.43%, which is quite good.
BR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.19% yearly.
Looking at the last year, BR shows a quite strong growth in Revenue. The Revenue has grown by 8.57% in the last year.
BR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.75% yearly.
EPS 1Y (TTM)18.43%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%51%
Revenue 1Y (TTM)8.57%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
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 10.60% on average per year.
The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y13.92%
EPS Next 2Y11.08%
EPS Next 3Y10.81%
EPS Next 5Y10.6%
Revenue Next Year5.46%
Revenue Next 2Y5.11%
Revenue Next 3Y5.27%
Revenue Next 5Y5.35%
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 24.65, BR is valued on the expensive side.
BR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. BR is around the same levels.
The Price/Forward Earnings ratio is 21.17, which indicates a rather expensive current valuation of BR.
BR's Price/Forward Earnings ratio is in line with the industry average.
BR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BR indicates a somewhat cheap valuation: BR is cheaper than 61.36% of the companies listed in the same industry.
62.50% of the companies in the same industry are more expensive than BR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.26 | ||
| EV/EBITDA | 18.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BR may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)2.2
EPS Next 2Y11.08%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, 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 0.43. BR pays more dividend than 89.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, BR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of BR grows each year by 10.38%, 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)10.38%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
44.54% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP44.54%
EPS Next 2Y11.08%
EPS Next 3Y10.81%
223.36
+0.45 (+0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.61%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change-0.34%
Market Cap26.07B
Revenue(TTM)7.06B
Net Income(TTM)925.10M
Analysts76.67
Price Target275.06 (23.15%)
Short Float %2.08%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend3.44
Dividend Growth(5Y)10.38%
DP44.54%
Div Incr Years17
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.43%
Min EPS beat(2)-1.49%
Max EPS beat(2)18.35%
EPS beat(4)2
Avg EPS beat(4)4.34%
Min EPS beat(4)-2.34%
Max EPS beat(4)18.35%
EPS beat(8)4
Avg EPS beat(8)1.47%
EPS beat(12)6
Avg EPS beat(12)1.49%
EPS beat(16)7
Avg EPS beat(16)0.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-5.62%
Max Revenue beat(4)0.34%
Revenue beat(8)1
Avg Revenue beat(8)-3.4%
Revenue beat(12)2
Avg Revenue beat(12)-3.48%
Revenue beat(16)4
Avg Revenue beat(16)-2.7%
PT rev (1m)0%
PT rev (3m)-2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)0%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 21.17 | ||
| P/S | 3.7 | ||
| P/FCF | 21.26 | ||
| P/OCF | 19.47 | ||
| P/B | 9.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.47 |
EPS(TTM)9.06
EY4.06%
EPS(NY)10.55
Fwd EY4.72%
FCF(TTM)10.51
FCFY4.7%
OCF(TTM)11.47
OCFY5.14%
SpS60.44
BVpS22.57
TBVpS-19.73
PEG (NY)1.77
PEG (5Y)2.2
Graham Number67.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 35.11% | ||
| ROCE | 18.47% | ||
| ROIC | 14.67% | ||
| ROICexc | 15.34% | ||
| ROICexgc | 65.82% | ||
| OM | 17.62% | ||
| PM (TTM) | 13.11% | ||
| GM | 31.34% | ||
| FCFM | 17.38% |
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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 34.03% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 10.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 132.59% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 4.75 |
F-Score8
WACC8.85%
ROIC/WACC1.66
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 Y13.92%
EPS Next 2Y11.08%
EPS Next 3Y10.81%
EPS Next 5Y10.6%
Revenue 1Y (TTM)8.57%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
Revenue Next Year5.46%
Revenue Next 2Y5.11%
Revenue Next 3Y5.27%
Revenue Next 5Y5.35%
EBIT growth 1Y23.93%
EBIT growth 3Y16.08%
EBIT growth 5Y13.72%
EBIT Next Year28.58%
EBIT Next 3Y10.91%
EBIT Next 5Y11.58%
FCF growth 1Y37.85%
FCF growth 3Y41.81%
FCF growth 5Y16.16%
OCF growth 1Y38.64%
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 for BR stock?
ChartMill assigns a valuation rating of 4 / 10 to BROADRIDGE FINANCIAL SOLUTIO (BR). This can be considered as Fairly Valued.
What is the profitability of BR stock?
BROADRIDGE FINANCIAL SOLUTIO (BR) has a profitability rating of 8 / 10.
Can you provide the financial health for BR stock?
The financial health rating of BROADRIDGE FINANCIAL SOLUTIO (BR) is 3 / 10.
Can you provide the expected EPS growth for BR stock?
The Earnings per Share (EPS) of BROADRIDGE FINANCIAL SOLUTIO (BR) is expected to grow by 13.92% in the next year.