BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BR - US11133T1034 - Common Stock
207.54 USD
-2.25 (-1.07%)
207.54 USD
0 (0%)
BR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. BR scores excellent on profitability, 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.
- BR had positive earnings in each of the past 5 years.
- Each year in the past 5 years BR had a positive operating cash flow.
1.2 Ratios
- BR's Return On Assets of 11.14% is amongst the best of 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.
- BR had an Average Return On Invested Capital over the past 3 years of 12.91%. This is significantly below the industry average of 29.06%.
- 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
- BR has a better Profit Margin (13.11%) than 86.36% of its industry peers.
- In the last couple of years the Profit Margin of BR has grown nicely.
- Looking at the Operating Margin, with a value of 17.62%, BR belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- BR's Operating Margin has improved in the last couple of years.
- BR has a Gross Margin (31.34%) which is in line with its industry peers.
- 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
- BR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BR has more shares outstanding than it did 1 year ago.
- 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 4.58. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of BR (4.58) is better than 75.00% of its industry peers.
- 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.
- BR's Debt to FCF ratio of 2.68 is fine compared to the rest of the industry. BR outperforms 63.64% of its industry peers.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that BR has dependencies on debt financing.
- BR's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. BR is outperformed by 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.67
WACC8.79%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that BR may have some problems paying its short term obligations.
- BR has a Current ratio of 0.93. This is amonst the worse of the industry: BR underperforms 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.
- Looking at the Quick ratio, with a value of 0.93, BR is doing worse than 79.55% of the companies in the same industry.
| 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.
- BR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.19% yearly.
- The Revenue has grown by 8.57% in the past year. This is quite good.
- 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.
- Based on estimates for the next years, BR will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y13.97%
EPS Next 2Y11.09%
EPS Next 3Y10.83%
EPS Next 5Y10.6%
Revenue Next Year5.48%
Revenue Next 2Y5.33%
Revenue Next 3Y5.3%
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.
- 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
- With a Price/Earnings ratio of 22.91, BR is valued on the expensive side.
- Based on the Price/Earnings ratio, BR is valued a bit cheaper than 61.36% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BR is valued at the same level.
- The Price/Forward Earnings ratio is 19.67, which indicates a rather expensive current valuation of BR.
- BR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BR is cheaper than 61.36% of the companies in the same industry.
- BR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 19.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BR is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
- 63.64% 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 | 19.75 | ||
| EV/EBITDA | 17.46 |
4.3 Compensation for Growth
- BR's 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)1.64
PEG (5Y)2.05
EPS Next 2Y11.09%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.78%, BR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.43, BR pays a better dividend. On top of this BR pays more dividend than 90.91% of the companies listed in the same industry.
- BR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
- The dividend of BR is nicely growing with an annual growth rate of 10.38%!
- 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)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 2Y11.09%
EPS Next 3Y10.83%
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 13.97% in the next year.