BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BR - US11133T1034 - Common Stock
232.02 USD
+1.14 (+0.49%)
232.02 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 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.
BR had a positive operating cash flow in the past year.
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 (11.14%) is better than 87.06% of its industry peers.
Looking at the Return On Equity, with a value of 35.11%, BR belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
BR has a better Return On Invested Capital (14.67%) than 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 29.59%.
The last Return On Invested Capital (14.67%) for BR is above the 3 year average (12.91%), which is a sign of increasing profitability.
| 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
BR's Profit Margin of 13.11% is amongst the best of the industry. BR outperforms 85.88% of its industry peers.
In the last couple of years the Profit Margin of BR has grown nicely.
BR has a Operating Margin of 17.62%. This is amongst the best in the industry. BR outperforms 90.59% of its industry peers.
BR's Operating Margin has improved in the last couple of years.
BR has a Gross Margin (31.34%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BR has grown nicely.
| 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
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.
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 4.86. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.86, BR is doing good in the industry, outperforming 72.94% of the companies in the same industry.
The Debt to FCF ratio of BR is 2.68, which is a good value as it means it would take BR, 2.68 years of fcf income to pay off 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 63.53% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that BR has dependencies on debt financing.
BR has a worse Debt to Equity ratio (1.06) than 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 4.86 |
ROIC/WACC1.75
WACC8.39%
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 83.53% 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.
With a Quick ratio value of 0.93, BR is not doing good in the industry: 81.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.43% over the past year.
Measured over the past years, BR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.19% on average per year.
Looking at the last year, BR shows a quite strong growth in Revenue. The Revenue has grown by 8.57% in the last 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)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
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
BR is valuated quite expensively with a Price/Earnings ratio of 25.61.
BR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BR to the average of the S&P500 Index (26.49), we can say BR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.99, the valuation of BR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, BR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.61 | ||
| Fwd PE | 21.99 |
4.2 Price Multiples
BR's Enterprise Value to EBITDA ratio is in line with the industry average.
BR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.08 | ||
| EV/EBITDA | 19.11 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)2.29
EPS Next 2Y11.08%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.95, BR pays a better dividend. On top of this BR pays more dividend than 90.59% of the companies listed in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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
BR pays out 44.54% of its income as dividend. 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.
DP44.54%
EPS Next 2Y11.08%
EPS Next 3Y10.81%
232.02
+1.14 (+0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.48%
Inst Owner Change-0.14%
Ins Owners0.42%
Ins Owner Change0.21%
Market Cap27.08B
Revenue(TTM)7.06B
Net Income(TTM)925.10M
Analysts76.67
Price Target275.06 (18.55%)
Short Float %1.66%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend3.44
Dividend Growth(5Y)10.38%
DP44.54%
Div Incr Years17
Div Non Decr Years17
Ex-Date
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)-2.86%
PT rev (3m)-2.17%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)1.06%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.61 | ||
| Fwd PE | 21.99 | ||
| P/S | 3.84 | ||
| P/FCF | 22.08 | ||
| P/OCF | 20.23 | ||
| P/B | 10.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.11 |
EPS(TTM)9.06
EY3.9%
EPS(NY)10.55
Fwd EY4.55%
FCF(TTM)10.51
FCFY4.53%
OCF(TTM)11.47
OCFY4.94%
SpS60.44
BVpS22.57
TBVpS-19.73
PEG (NY)1.84
PEG (5Y)2.29
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 | 4.86 |
F-Score8
WACC8.39%
ROIC/WACC1.75
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 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 13.92% 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 44.54%.