BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BR - US11133T1034 - Common Stock
228.09 USD
+0.5 (+0.22%)
228.09 USD
0 (0%)
Overall BR gets a fundamental rating of 5 out of 10. We evaluated BR against 86 industry peers in the IT Services industry. While BR has a great profitability rating, there are quite some concerns on its financial health. BR is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years BR has always been profitable.
Each year in the past 5 years BR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.14%, BR belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
BR's Return On Equity of 35.11% is amongst the best of the industry. BR outperforms 94.12% of its industry peers.
BR has a better Return On Invested Capital (14.67%) than 87.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 29.77%.
The last Return On Invested Capital (14.67%) for BR is above the 3 year average (12.91%), which is a sign of increasing profitability.
| 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
The Profit Margin of BR (13.11%) is better than 87.06% of its industry peers.
In the last couple of years the Profit Margin of BR has grown nicely.
BR's Operating Margin of 17.62% is amongst the best of the industry. BR outperforms 90.59% of its industry peers.
In the last couple of years the Operating Margin of BR has grown nicely.
The Gross Margin of BR (31.34%) is comparable to the rest of the industry.
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.
The debt/assets ratio for BR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.81 indicates that BR is not in any danger for bankruptcy at the moment.
BR has a Altman-Z score of 4.81. This is in the better half of the industry: BR outperforms 70.59% 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.
With a decent Debt to FCF ratio value of 2.68, BR is doing good in the industry, outperforming 61.18% of the companies in the same industry.
BR has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
BR has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: BR underperforms 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 4.81 |
ROIC/WACC1.73
WACC8.49%
2.3 Liquidity
BR has a Current 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.
With a Current ratio value of 0.93, BR is not doing good in the industry: 81.18% of the companies in the same industry are doing better.
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.
BR has a worse Quick ratio (0.93) than 78.82% of its industry peers.
| 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.
Measured over the past years, BR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.19% on average per year.
Looking at the last year, BR shows a quite strong growth in Revenue. The Revenue has grown by 8.57% in the last year.
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
BR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.60% yearly.
The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y12.73%
EPS Next 2Y11.02%
EPS Next 3Y11.08%
EPS Next 5Y10.6%
Revenue Next Year4.96%
Revenue Next 2Y5.09%
Revenue Next 3Y5.39%
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.
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
With a Price/Earnings ratio of 25.18, BR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as BR.
BR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
BR is valuated rather expensively with a Price/Forward Earnings ratio of 21.64.
BR's Price/Forward Earnings is on the same level as the industry average.
BR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 21.64 |
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.
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 | 21.71 | ||
| EV/EBITDA | 18.82 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)2.25
EPS Next 2Y11.02%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.03, BR pays a better dividend. On top of this BR pays more dividend than 90.59% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, BR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
On average, the dividend of BR grows each year by 10.38%, 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)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 2Y11.02%
EPS Next 3Y11.08%
228.09
+0.5 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners93.49%
Inst Owner Change-0.18%
Ins Owners0.42%
Ins Owner Change-0.09%
Market Cap26.62B
Revenue(TTM)7.06B
Net Income(TTM)925.10M
Analysts76.67
Price Target278.88 (22.27%)
Short Float %1.42%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend3.44
Dividend Growth(5Y)10.38%
DP44.54%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.43%
Min EPS beat(2)-1.49%
Max EPS beat(2)18.35%
EPS beat(4)2
Avg EPS beat(4)4.34%
Min EPS beat(4)-2.34%
Max EPS beat(4)18.35%
EPS beat(8)4
Avg EPS beat(8)1.47%
EPS beat(12)6
Avg EPS beat(12)1.49%
EPS beat(16)7
Avg EPS beat(16)0.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-5.62%
Max Revenue beat(4)0.34%
Revenue beat(8)1
Avg Revenue beat(8)-3.4%
Revenue beat(12)2
Avg Revenue beat(12)-3.48%
Revenue beat(16)4
Avg Revenue beat(16)-2.7%
PT rev (1m)-1.51%
PT rev (3m)-0.81%
EPS NQ rev (1m)-8.14%
EPS NQ rev (3m)-8.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 21.64 | ||
| P/S | 3.77 | ||
| P/FCF | 21.71 | ||
| P/OCF | 19.88 | ||
| P/B | 10.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.82 |
EPS(TTM)9.06
EY3.97%
EPS(NY)10.54
Fwd EY4.62%
FCF(TTM)10.51
FCFY4.61%
OCF(TTM)11.47
OCFY5.03%
SpS60.44
BVpS22.57
TBVpS-19.73
PEG (NY)1.98
PEG (5Y)2.25
Graham Number67.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 35.11% | ||
| ROCE | 18.47% | ||
| ROIC | 14.67% | ||
| ROICexc | 15.34% | ||
| ROICexgc | 65.82% | ||
| OM | 17.62% | ||
| PM (TTM) | 13.11% | ||
| GM | 31.34% | ||
| FCFM | 17.38% |
ROA(3y)8.65%
ROA(5y)7.86%
ROE(3y)30.65%
ROE(5y)30.06%
ROIC(3y)12.91%
ROIC(5y)11.08%
ROICexc(3y)13.71%
ROICexc(5y)11.69%
ROICexgc(3y)78.85%
ROICexgc(5y)60.78%
ROCE(3y)16.25%
ROCE(5y)13.95%
ROICexgc growth 3Y37.85%
ROICexgc growth 5Y4.62%
ROICexc growth 3Y19.21%
ROICexc growth 5Y-0.93%
OM growth 3Y9.03%
OM growth 5Y4.57%
PM growth 3Y8.87%
PM growth 5Y3.6%
GM growth 3Y3.61%
GM growth 5Y2.14%
F-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.68 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 34.03% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 10.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 132.59% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 4.81 |
F-Score8
WACC8.49%
ROIC/WACC1.73
Cap/Depr(3y)31.86%
Cap/Depr(5y)32.62%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.59%
Profit Quality(3y)126.53%
Profit Quality(5y)109.36%
High Growth Momentum
Growth
EPS 1Y (TTM)18.43%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%51%
EPS Next Y12.73%
EPS Next 2Y11.02%
EPS Next 3Y11.08%
EPS Next 5Y10.6%
Revenue 1Y (TTM)8.57%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
Revenue Next Year4.96%
Revenue Next 2Y5.09%
Revenue Next 3Y5.39%
Revenue Next 5Y5.35%
EBIT growth 1Y23.93%
EBIT growth 3Y16.08%
EBIT growth 5Y13.72%
EBIT Next Year30.55%
EBIT Next 3Y12.4%
EBIT Next 5Y11.58%
FCF growth 1Y37.85%
FCF growth 3Y41.81%
FCF growth 5Y16.16%
OCF growth 1Y38.64%
OCF growth 3Y38.23%
OCF growth 5Y14.38%
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 of BROADRIDGE FINANCIAL SOLUTIO (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.
What is the earnings growth outlook for BROADRIDGE FINANCIAL SOLUTIO?
The Earnings per Share (EPS) of BROADRIDGE FINANCIAL SOLUTIO (BR) is expected to grow by 12.73% in the next year.
Is the dividend of BROADRIDGE FINANCIAL SOLUTIO sustainable?
The dividend rating of BROADRIDGE FINANCIAL SOLUTIO (BR) is 6 / 10 and the dividend payout ratio is 44.54%.