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 86 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 quite expensive at the moment. 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.
BR had positive earnings in each of the past 5 years.
In the past 5 years BR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.47%, BR belongs to the best of the industry, outperforming 80.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 32.20%, BR belongs to the top of the industry, outperforming 95.06% of the companies in the same industry.
The Return On Invested Capital of BR (11.85%) is better than 82.72% of its industry peers.
BR had an Average Return On Invested Capital over the past 3 years of 11.13%. This is below the industry average of 13.88%.
The last Return On Invested Capital (11.85%) for BR is above the 3 year average (11.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.47% | ||
| ROE | 32.2% | ||
| ROIC | 11.85% |
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
With a decent Profit Margin value of 10.73%, BR is doing good in the industry, outperforming 77.78% of the companies in the same industry.
BR's Profit Margin has been stable in the last couple of years.
BR has a Operating Margin of 15.63%. This is amongst the best in the industry. BR outperforms 87.65% of its industry peers.
In the last couple of years the Operating Margin of BR has remained more or less at the same level.
BR's Gross Margin of 29.72% is on the low side compared to the rest of the industry. BR is outperformed by 64.20% of its industry peers.
BR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.63% | ||
| PM (TTM) | 10.73% | ||
| GM | 29.72% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BR is still creating some value.
The number of shares outstanding for BR has been reduced compared to 1 year ago.
Compared to 5 years ago, BR has more shares outstanding
BR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.33 indicates that BR is not in any danger for bankruptcy at the moment.
BR's Altman-Z score of 4.33 is fine compared to the rest of the industry. BR outperforms 70.37% of its industry peers.
The Debt to FCF ratio of BR is 3.56, which is a good value as it means it would take BR, 3.56 years of fcf income to pay off all of its debts.
BR's Debt to FCF ratio of 3.56 is in line compared to the rest of the industry. BR outperforms 58.02% of its industry peers.
A Debt/Equity ratio of 1.55 is on the high side and indicates that BR has dependencies on debt financing.
The Debt to Equity ratio of BR (1.55) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.23
WACC9.64%
2.3 Liquidity
BR has a Current Ratio of 1.08. This is a normal value and indicates that BR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.08, BR is doing worse than 71.60% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that BR should not have too much problems paying its short term obligations.
BR has a worse Quick ratio (1.08) than 69.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
BR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.41%, which is quite good.
BR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.68% yearly.
The Revenue has been growing slightly by 7.36% in the past year.
The Revenue has been growing by 8.33% on average over the past years. This is quite good.
EPS 1Y (TTM)10.41%
EPS 3Y11%
EPS 5Y10.68%
EPS Q2Q%9.03%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y9.22%
Revenue growth 5Y8.33%
Sales Q2Q%5.71%
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 10.65% yearly.
The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y13.14%
EPS Next 2Y11.5%
EPS Next 3Y10.86%
EPS Next 5Y10.65%
Revenue Next Year6.55%
Revenue Next 2Y5.91%
Revenue Next 3Y2.51%
Revenue Next 5Y5.16%
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.
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
A Price/Earnings ratio of 28.27 indicates a quite expensive valuation of BR.
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 (31.71), we can say BR is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.99, BR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as BR.
BR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.27 | ||
| Fwd PE | 24.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BR is on the same level as its industry peers.
BR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.12 | ||
| EV/EBITDA | 21.43 |
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.
The decent profitability rating of BR may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)2.65
EPS Next 2Y11.5%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, BR has a reasonable but not impressive dividend return.
BR's Dividend Yield is rather good when compared to the industry average which is at 2.62. BR pays more dividend than 88.89% of the companies in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of BR is nicely growing with an annual growth rate of 11.36%!
BR has paid a dividend for at least 10 years, which is 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 Years16
Div Non Decr Years16
5.3 Sustainability
52.74% 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.
DP52.74%
EPS Next 2Y11.5%
EPS Next 3Y10.86%
BROADRIDGE FINANCIAL SOLUTIO
NYSE:BR (10/21/2024, 5:05:01 PM)
After market: 218.81 0 (0%)218.81
-0.29 (-0.13%)
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 Cap25.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 | 28.27 | ||
| Fwd PE | 24.99 | ||
| 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)2.15
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.47% | ||
| ROE | 32.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.63% | ||
| PM (TTM) | 10.73% | ||
| GM | 29.72% | ||
| 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 Turnover0.79
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 | 1.08 | ||
| Quick Ratio | 1.08 | ||
| 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)10.41%
EPS 3Y11%
EPS 5Y
EPS Q2Q%
EPS Next Y13.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.36%
Revenue growth 3Y9.22%
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