BROADRIDGE FINANCIAL SOLUTIO (BR)

US11133T1034 - Common Stock

209.74  +1.6 (+0.77%)

After market: 209.74 0 (0%)

Fundamental Rating

5

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. While showing a medium growth rate, BR is valued expensive at the moment.



8

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 each of the past 5 years.
In the past 5 years BR always reported a positive cash flow from operatings.

1.2 Ratios

BR has a better Return On Assets (8.51%) than 80.00% of its industry peers.
BR's Return On Equity of 30.83% is amongst the best of the industry. BR outperforms 95.00% of its industry peers.
BR has a better Return On Invested Capital (11.58%) than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is below the industry average of 12.02%.
The 3 year average ROIC (9.86%) for BR is below the current ROIC(11.58%), indicating increased profibility in the last year.
Industry RankSector 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

Looking at the Profit Margin, with a value of 10.92%, BR belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Profit Margin of BR has remained more or less at the same level.
BR has a better Operating Margin (16.09%) than 88.75% of its industry peers.
In the last couple of years the Operating Margin of BR has grown nicely.
The Gross Margin of BR (30.03%) is worse than 65.00% of its industry peers.
BR's Gross Margin has improved in the last couple of years.
Industry RankSector 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%

4

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.
The number of shares outstanding for BR has been increased compared to 5 years ago.
Compared to 1 year ago, BR has an improved debt to assets ratio.

2.2 Solvency

BR has an Altman-Z score of 4.29. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
BR's Altman-Z score of 4.29 is fine compared to the rest of the industry. BR outperforms 71.25% 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 has a Debt to Equity ratio of 1.55. This is in the lower half of the industry: BR underperforms 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 3.66
Altman-Z 4.29
ROIC/WACC1.21
WACC9.56%

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.
BR has a Current ratio (1.39) which is in line with its industry peers.
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 (1.39) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 1.39

4

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.
BR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.68%.
The Revenue has been growing slightly by 6.96% on average over the past years.
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.
BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
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

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.

3

4. Valuation

4.1 Price/Earnings Ratio

BR is valuated quite expensively with a Price/Earnings ratio of 28.15.
Compared to the rest of the industry, the Price/Earnings ratio of BR is on the same level as its industry peers.
BR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.53.
BR is valuated rather expensively with a Price/Forward Earnings ratio of 23.99.
The rest of the industry has a similar Price/Forward Earnings ratio as BR.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, BR is valued at the same level.
Industry RankSector Rank
PE 28.15
Fwd PE 23.99

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.
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 RankSector Rank
P/FCF 25.84
EV/EBITDA 20.75

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 excellent profitability rating of BR may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)2.6
EPS Next 2Y11.68%
EPS Next 3Y10.98%

6

5. Dividend

5.1 Amount

BR has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.85, BR pays a better dividend. On top of this BR pays more dividend than 85.00% of the companies listed in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
Industry RankSector Rank
Dividend Yield 1.57%

5.2 History

The dividend of BR is nicely growing with an annual growth rate of 14.57%!
BR has paid a dividend for at least 10 years, which is 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 (7/16/2024, 7:12:35 PM)

After market: 209.74 0 (0%)

209.74

+1.6 (+0.77%)

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 Cap24.79B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.57%
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 RankSector Rank
PE 28.15
Fwd PE 23.99
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)2.07
PEG (5Y)2.6
Profitability
Industry RankSector 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 RankSector 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