BROADRIDGE FINANCIAL SOLUTIO (BR)
US11133T1034 - Common Stock
Taking everything into account, BR scores 5 out of 10 in our fundamental rating. BR was compared to 85 industry peers in the IT Services industry. While BR has a great profitability rating, 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
In the past year BR was profitable.
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 has a better Return On Assets (8.51%) than 80.72% of its industry peers.
BR's Return On Equity of 30.83% is amongst the best of the industry. BR outperforms 93.98% of its industry peers.
The Return On Invested Capital of BR (11.58%) is better than 80.72% of its industry peers.
BR had an Average Return On Invested Capital over the past 3 years of 9.86%. This is below the industry average of 12.38%.
The 3 year average ROIC (9.86%) for BR is below the current ROIC(11.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 30.83% | ||
| ROIC | 11.58% |
ROA(3y)7%
ROA(5y)8.58%
ROE(3y)28.83%
ROE(5y)32.72%
ROIC(3y)9.86%
ROIC(5y)12.11%
1.3 Margins
The Profit Margin of BR (10.92%) is better than 81.93% of its industry peers.
In the last couple of years the Profit Margin of BR has remained more or less at the same level.
BR has a Operating Margin of 16.09%. This is amongst the best in the industry. BR outperforms 89.16% of its industry peers.
In the last couple of years the Operating Margin of BR has grown nicely.
BR has a Gross Margin of 30.03%. This is in the lower half of the industry: BR underperforms 62.65% of its industry peers.
BR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.09% | ||
| PM (TTM) | 10.92% | ||
| GM | 30.03% |
OM growth 3Y3.84%
OM growth 5Y2.37%
PM growth 3Y0.62%
PM growth 5Y1.03%
GM growth 3Y1.82%
GM growth 5Y1.91%
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.
The debt/assets ratio for BR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.28 indicates that BR is not in any danger for bankruptcy at the moment.
The Altman-Z score of BR (4.28) is better than 69.88% of its industry peers.
The Debt to FCF ratio of BR is 3.66, which is a good value as it means it would take BR, 3.66 years of fcf income to pay off all of its debts.
BR has a Debt to FCF ratio (3.66) which is in line with its industry peers.
BR has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
BR's Debt to Equity ratio of 1.55 is on the low side compared to the rest of the industry. BR is outperformed by 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 4.28 |
ROIC/WACC1.19
WACC9.76%
2.3 Liquidity
BR has a Current Ratio of 1.39. This is a normal value and indicates that BR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BR (1.39) is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that BR should not have too much problems paying its short term obligations.
BR has a Quick ratio of 1.39. This is comparable to the rest of the industry: BR outperforms 46.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.50% 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 10.84% yearly.
The Revenue has been growing slightly by 7.68% in the past year.
BR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
EPS 1Y (TTM)15.5%
EPS 3Y11.7%
EPS 5Y10.84%
EPS Q2Q%8.78%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y10.2%
Revenue growth 5Y6.96%
Sales Q2Q%4.91%
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 5.49% on average per year.
EPS Next Y13.6%
EPS Next 2Y11.68%
EPS Next 3Y10.98%
EPS Next 5Y10.6%
Revenue Next Year6.82%
Revenue Next 2Y6.1%
Revenue Next 3Y5.79%
Revenue Next 5Y5.49%
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.
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
BR is valuated quite expensively with a Price/Earnings ratio of 28.45.
The rest of the industry has a similar Price/Earnings ratio as BR.
When comparing the Price/Earnings ratio of BR to the average of the S&P500 Index (24.29), we can say BR is valued inline with the index average.
A Price/Forward Earnings ratio of 24.24 indicates a rather expensive valuation of BR.
BR's Price/Forward Earnings ratio is in line with the industry average.
BR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.45 | ||
| Fwd PE | 24.24 |
4.2 Price Multiples
BR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.11 | ||
| EV/EBITDA | 20.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)2.62
EPS Next 2Y11.68%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
BR's Dividend Yield is rather good when compared to the industry average which is at 2.62. BR pays more dividend than 85.54% of the companies in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of BR grows each year by 14.57%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.57%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
51.39% 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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.39%
EPS Next 2Y11.68%
EPS Next 3Y10.98%
BROADRIDGE FINANCIAL SOLUTIO
NYSE:BR (7/26/2024, 9:41:25 AM)
211.93
+3.86 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.45 | ||
| Fwd PE | 24.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.09
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 30.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.09% | ||
| PM (TTM) | 10.92% | ||
| GM | 30.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)15.5%
EPS 3Y11.7%
EPS 5Y
EPS Q2Q%
EPS Next Y13.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.68%
Revenue growth 3Y10.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y