Is NYSE:BR suited for quality investing?

In this article we will dive into BROADRIDGE FINANCIAL SOLUTIO (NYSE:BR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BROADRIDGE FINANCIAL SOLUTIO showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:BR highlighted

• BROADRIDGE FINANCIAL SOLUTIO has demonstrated significant revenue growth over the past 5 years, with a 6.96% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 114.0%, BROADRIDGE FINANCIAL SOLUTIO demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• BROADRIDGE FINANCIAL SOLUTIO maintains a healthy Debt/Free Cash Flow Ratio of 4.56, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 101.0%, BROADRIDGE FINANCIAL SOLUTIO showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of BROADRIDGE FINANCIAL SOLUTIO has been remarkable, with 9.5% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• BROADRIDGE FINANCIAL SOLUTIO has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NYSE:BR

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, BR scores 4 out of 10 in our fundamental rating. BR was compared to 88 industry peers in the IT Services industry. BR scores excellent on profitability, but there are concerns on its financial health. BR is quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of BR

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.