BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - NYSE:BR - US11133T1034 - Common Stock
221.72 USD
+4.23 (+1.94%)
221.72 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BR. BR was compared to 84 industry peers in the IT Services industry. BR has an excellent profitability rating, but there are 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
In the past year BR was profitable.
In the past year BR had a positive cash flow from operations.
Each year in the past 5 years BR has been profitable.
In the past 5 years BR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.82%, BR belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
The Return On Equity of BR (31.62%) is better than 95.29% of its industry peers.
BR's Return On Invested Capital of 14.13% is amongst the best of the industry. BR outperforms 85.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 28.48%.
The 3 year average ROIC (12.91%) for BR is below the current ROIC(14.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 31.62% | ||
| ROIC | 14.13% |
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
BR has a better Profit Margin (12.19%) than 88.24% of its industry peers.
BR's Profit Margin has improved in the last couple of years.
BR has a Operating Margin of 17.25%. This is amongst the best in the industry. BR outperforms 91.76% of its industry peers.
BR's Operating Margin has improved in the last couple of years.
BR has a Gross Margin of 31.02%. This is comparable to the rest of the industry: BR outperforms 43.53% of its industry peers.
In the last couple of years the Gross Margin of BR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.25% | ||
| PM (TTM) | 12.19% | ||
| GM | 31.02% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BR is creating some value.
Compared to 1 year ago, BR has more shares outstanding
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 4.53 indicates that BR is not in any danger for bankruptcy at the moment.
BR has a Altman-Z score of 4.53. This is in the better half of the industry: BR outperforms 67.06% of its industry peers.
BR has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as BR would need 3.08 years to pay back of all of its debts.
BR's Debt to FCF ratio of 3.08 is fine compared to the rest of the industry. BR outperforms 64.71% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that BR has dependencies on debt financing.
BR has a Debt to Equity ratio of 1.04. This is in the lower half of the industry: BR underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.53 |
ROIC/WACC1.65
WACC8.57%
2.3 Liquidity
BR has a Current Ratio of 0.98. 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 0.98, BR is not doing good in the industry: 78.82% of the companies in the same industry are doing better.
BR has a Quick Ratio of 0.98. This is a bad value and indicates that BR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BR (0.98) is worse than 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.43% over the past year.
The Earnings Per Share has been growing by 11.19% on average over the past years. This is quite good.
BR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.88%.
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)5.88%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
3.2 Future
The Earnings Per Share is expected to grow by 10.64% on average over the next years. This is quite good.
BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.33% yearly.
EPS Next Y12.73%
EPS Next 2Y11.02%
EPS Next 3Y10.83%
EPS Next 5Y10.64%
Revenue Next Year4.96%
Revenue Next 2Y5.09%
Revenue Next 3Y5.25%
Revenue Next 5Y5.33%
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
A Price/Earnings ratio of 24.47 indicates a rather expensive valuation of BR.
Compared to the rest of the industry, the Price/Earnings ratio of BR is on the same level as its industry peers.
BR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.04, which indicates a rather expensive current valuation of BR.
BR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, BR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 21.04 |
4.2 Price Multiples
BR's Enterprise Value to EBITDA ratio is in line with 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 | 24.5 | ||
| EV/EBITDA | 18.85 |
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)1.92
PEG (5Y)2.19
EPS Next 2Y11.02%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.01, BR pays a better dividend. On top of this BR pays more dividend than 90.59% of the companies listed in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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
47.92% 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.92%
EPS Next 2Y11.02%
EPS Next 3Y10.83%
221.72
+4.23 (+1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners93.49%
Inst Owner Change-0.94%
Ins Owners0.42%
Ins Owner Change-0.77%
Market Cap25.88B
Revenue(TTM)6.89B
Net Income(TTM)839.50M
Analysts76.67
Price Target283.17 (27.72%)
Short Float %1.49%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend3.44
Dividend Growth(5Y)10.38%
DP47.92%
Div Incr Years17
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.92%
Min EPS beat(2)-2.34%
Max EPS beat(2)-1.49%
EPS beat(4)2
Avg EPS beat(4)-0.23%
Min EPS beat(4)-2.34%
Max EPS beat(4)2.83%
EPS beat(8)4
Avg EPS beat(8)0.37%
EPS beat(12)5
Avg EPS beat(12)-0.61%
EPS beat(16)7
Avg EPS beat(16)-0.14%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-5.62%
Max Revenue beat(2)-2.55%
Revenue beat(4)0
Avg Revenue beat(4)-3.98%
Min Revenue beat(4)-6.88%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-3.43%
Revenue beat(12)1
Avg Revenue beat(12)-3.59%
Revenue beat(16)4
Avg Revenue beat(16)-2.67%
PT rev (1m)0%
PT rev (3m)8.78%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)5.58%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 21.04 | ||
| P/S | 3.76 | ||
| P/FCF | 24.5 | ||
| P/OCF | 22.09 | ||
| P/B | 9.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.85 |
EPS(TTM)9.06
EY4.09%
EPS(NY)10.54
Fwd EY4.75%
FCF(TTM)9.05
FCFY4.08%
OCF(TTM)10.04
OCFY4.53%
SpS59.02
BVpS22.75
TBVpS-19.12
PEG (NY)1.92
PEG (5Y)2.19
Graham Number68.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 31.62% | ||
| ROCE | 17.78% | ||
| ROIC | 14.13% | ||
| ROICexc | 15.42% | ||
| ROICexgc | 76.43% | ||
| OM | 17.25% | ||
| PM (TTM) | 12.19% | ||
| GM | 31.02% | ||
| FCFM | 15.33% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 35.11% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 77.26% | ||
| Profit Quality | 125.84% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 4.53 |
F-Score8
WACC8.57%
ROIC/WACC1.65
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 3Y10.83%
EPS Next 5Y10.64%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%11.7%
Revenue Next Year4.96%
Revenue Next 2Y5.09%
Revenue Next 3Y5.25%
Revenue Next 5Y5.33%
EBIT growth 1Y16.87%
EBIT growth 3Y16.08%
EBIT growth 5Y13.72%
EBIT Next Year30.55%
EBIT Next 3Y12.29%
EBIT Next 5Y11.73%
FCF growth 1Y12%
FCF growth 3Y41.81%
FCF growth 5Y16.16%
OCF growth 1Y10.9%
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 3 / 10 to BROADRIDGE FINANCIAL SOLUTIO (BR). This can be considered as Overvalued.
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 47.92%.