BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
NYSE:BR - New York Stock Exchange, Inc. - US11133T1034 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BR. BR was compared to 82 industry peers in the IT Services industry. While BR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BR had positive earnings in the past year.
In the past year BR had a positive cash flow from operations.
BR had positive earnings in 4 of the past 5 years.
BR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.50%, BR belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
BR has a better Return On Equity (33.10%) than 95.12% of its industry peers.
BR has a better Return On Invested Capital (12.78%) than 80.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BR is significantly below the industry average of 22.80%.
The 3 year average ROIC (11.13%) for BR is below the current ROIC(12.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 33.1% | ||
| ROIC | 12.78% |
ROA(3y)7.58%
ROA(5y)7.79%
ROE(3y)29.48%
ROE(5y)30.61%
ROIC(3y)11.13%
ROIC(5y)11.06%
1.3 Margins
BR's Profit Margin of 11.65% is amongst the best of the industry. BR outperforms 84.15% of its industry peers.
BR's Profit Margin has been stable in the last couple of years.
BR has a Operating Margin of 16.72%. This is amongst the best in the industry. BR outperforms 87.80% of its industry peers.
BR's Operating Margin has been stable in the last couple of years.
BR has a Gross Margin (30.41%) which is comparable to the rest of the industry.
BR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 11.65% | ||
| GM | 30.41% |
OM growth 3Y4.77%
OM growth 5Y0.88%
PM growth 3Y-0.72%
PM growth 5Y-0.59%
GM growth 3Y1.42%
GM growth 5Y1.05%
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.
There is no outstanding debt for BR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.09 indicates that BR is not in any danger for bankruptcy at the moment.
BR's Altman-Z score of 5.09 is fine compared to the rest of the industry. BR outperforms 74.39% of its industry peers.
The Debt to FCF ratio of BR is 3.19, which is a good value as it means it would take BR, 3.19 years of fcf income to pay off all of its debts.
BR has a Debt to FCF ratio of 3.19. This is in the better half of the industry: BR outperforms 63.41% of its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that BR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.44, BR is doing worse than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 5.09 |
ROIC/WACC1.33
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.32 indicates that BR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, BR is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
A Quick Ratio of 1.32 indicates that BR should not have too much problems paying its short term obligations.
BR's Quick ratio of 1.32 is on the low side compared to the rest of the industry. BR is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.47% 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.
EPS 1Y (TTM)10.47%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%1.43%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.24%
3.2 Future
BR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.78% yearly.
BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.47% yearly.
EPS Next Y11.39%
EPS Next 2Y10.49%
EPS Next 3Y11.33%
EPS Next 5Y10.78%
Revenue Next Year4.9%
Revenue Next 2Y5.19%
Revenue Next 3Y5.51%
Revenue Next 5Y5.47%
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.
4. Valuation
4.1 Price/Earnings Ratio
BR is valuated quite expensively with a Price/Earnings ratio of 30.83.
BR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BR to the average of the S&P500 Index (27.03), we can say BR is valued inline with the index average.
The Price/Forward Earnings ratio is 27.68, which means the current valuation is very expensive for BR.
The rest of the industry has a similar Price/Forward Earnings ratio as BR.
The average S&P500 Price/Forward Earnings ratio is at 36.28. BR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.83 | ||
| Fwd PE | 27.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BR.
The rest of the industry has a similar Price/Free Cash Flow ratio as BR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.73 | ||
| EV/EBITDA | 23.57 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)2.75
EPS Next 2Y10.49%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.42%.
Compared to an average industry Dividend Yield of 2.51, BR pays a better dividend. On top of this BR pays more dividend than 84.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of BR grows each year by 11.36%, 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)11.36%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
49.90% of the earnings are spent on dividend by BR. This is a bit on the high side, but may be sustainable.
BR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.9%
EPS Next 2Y10.49%
EPS Next 3Y11.33%
NYSE:BR (8/6/2025, 9:45:09 AM)
263.575
-1.75 (-0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change-0.92%
Ins Owners0.44%
Ins Owner Change-6.49%
Market Cap30.96B
Analysts76.67
Price Target260.31 (-1.24%)
Short Float %1.12%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend3.14
Dividend Growth(5Y)11.36%
DP49.9%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.25%
Min EPS beat(2)-2.34%
Max EPS beat(2)2.83%
EPS beat(4)2
Avg EPS beat(4)-0.5%
Min EPS beat(4)-2.59%
Max EPS beat(4)2.83%
EPS beat(8)5
Avg EPS beat(8)0.59%
EPS beat(12)5
Avg EPS beat(12)-0.65%
EPS beat(16)7
Avg EPS beat(16)-0.23%
Revenue beat(2)0
Avg Revenue beat(2)-3.24%
Min Revenue beat(2)-5.62%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-4.28%
Min Revenue beat(4)-6.88%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-3.74%
Revenue beat(12)2
Avg Revenue beat(12)-3.33%
Revenue beat(16)5
Avg Revenue beat(16)-2.45%
PT rev (1m)0%
PT rev (3m)6.98%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-3.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.83 | ||
| Fwd PE | 27.68 | ||
| P/S | 4.57 | ||
| P/FCF | 28.73 | ||
| P/OCF | 25.96 | ||
| P/B | 13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.57 |
EPS(TTM)8.55
EY3.24%
EPS(NY)9.52
Fwd EY3.61%
FCF(TTM)9.18
FCFY3.48%
OCF(TTM)10.15
OCFY3.85%
SpS57.62
BVpS20.28
TBVpS-20.45
PEG (NY)2.71
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 33.1% | ||
| ROCE | 16.08% | ||
| ROIC | 12.78% | ||
| ROICexc | 13.38% | ||
| ROICexgc | 46.49% | ||
| OM | 16.72% | ||
| PM (TTM) | 11.65% | ||
| GM | 30.41% | ||
| FCFM | 15.92% |
ROA(3y)7.58%
ROA(5y)7.79%
ROE(3y)29.48%
ROE(5y)30.61%
ROIC(3y)11.13%
ROIC(5y)11.06%
ROICexc(3y)11.61%
ROICexc(5y)11.84%
ROICexgc(3y)63.11%
ROICexgc(5y)57.7%
ROCE(3y)14.01%
ROCE(5y)13.92%
ROICexcg growth 3Y6.75%
ROICexcg growth 5Y-7.68%
ROICexc growth 3Y14.68%
ROICexc growth 5Y-7.68%
OM growth 3Y4.77%
OM growth 5Y0.88%
PM growth 3Y-0.72%
PM growth 5Y-0.59%
GM growth 3Y1.42%
GM growth 5Y1.05%
F-Score8
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 35.54% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 8.16 | ||
| Cash Conversion | 81.98% | ||
| Profit Quality | 136.68% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 5.09 |
F-Score8
WACC9.58%
ROIC/WACC1.33
Cap/Depr(3y)27.48%
Cap/Depr(5y)35.63%
Cap/Sales(3y)1.42%
Cap/Sales(5y)1.69%
Profit Quality(3y)107.48%
Profit Quality(5y)105.79%
High Growth Momentum
Growth
EPS 1Y (TTM)10.47%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%1.43%
EPS Next Y11.39%
EPS Next 2Y10.49%
EPS Next 3Y11.33%
EPS Next 5Y10.78%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.24%
Revenue Next Year4.9%
Revenue Next 2Y5.19%
Revenue Next 3Y5.51%
Revenue Next 5Y5.47%
EBIT growth 1Y9.86%
EBIT growth 3Y14.44%
EBIT growth 5Y9.28%
EBIT Next Year28.45%
EBIT Next 3Y14.04%
EBIT Next 5Y10.76%
FCF growth 1Y121.75%
FCF growth 3Y20.48%
FCF growth 5Y11.62%
OCF growth 1Y116.25%
OCF growth 3Y18.17%
OCF growth 5Y11.35%