BROADRIDGE FINANCIAL SOLUTIO (BR)

US11133T1034 - Common Stock

203.74  +0.16 (+0.08%)

After market: 203.74 0 (0%)

Fundamental Rating

5

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 some minor concerns on its financial health. BR is quite expensive at the moment. It does show a decent growth rate.



7

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

The Return On Assets of BR (8.55%) is better than 77.38% of its industry peers.
BR's Return On Equity of 33.07% is amongst the best of the industry. BR outperforms 95.24% of its industry peers.
BR has a better Return On Invested Capital (11.51%) than 80.95% of its industry peers.
BR had an Average Return On Invested Capital over the past 3 years of 9.86%. This is below the industry average of 13.32%.
The 3 year average ROIC (9.86%) for BR is below the current ROIC(11.51%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.55%
ROE 33.07%
ROIC 11.51%
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

BR has a better Profit Margin (10.82%) than 77.38% of its industry peers.
In the last couple of years the Profit Margin of BR has remained more or less at the same level.
BR has a Operating Margin of 16.04%. This is amongst the best in the industry. BR outperforms 86.90% of its industry peers.
In the last couple of years the Operating Margin of BR has grown nicely.
With a Gross Margin value of 29.93%, BR is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BR has grown nicely.
Industry RankSector Rank
OM 16.04%
PM (TTM) 10.82%
GM 29.93%
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.
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

BR has an Altman-Z score of 4.23. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.23, BR is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
BR has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as BR would need 3.83 years to pay back of all of its debts.
BR has a Debt to FCF ratio (3.83) which is in line with its industry peers.
A Debt/Equity ratio of 1.77 is on the high side and indicates that BR has dependencies on debt financing.
BR has a worse Debt to Equity ratio (1.77) than 73.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.77
Debt/FCF 3.83
Altman-Z 4.23
ROIC/WACC1.06
WACC10.84%

2.3 Liquidity

A Current Ratio of 1.40 indicates that BR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, BR perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
BR has a Quick Ratio of 1.40. 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 Quick ratio (1.40) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.4
Quick Ratio 1.4

5

3. Growth

3.1 Past

BR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.85%, 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 10.84% yearly.
Looking at the last year, BR shows a quite strong growth in Revenue. The Revenue has grown by 8.37% in the last year.
The Revenue has been growing slightly by 6.96% on average over the past years.
EPS 1Y (TTM)14.85%
EPS 3Y11.7%
EPS 5Y10.84%
EPS growth Q2Q1.1%
Revenue 1Y (TTM)8.37%
Revenue growth 3Y10.2%
Revenue growth 5Y6.96%
Revenue growth Q2Q8.67%

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 10.08% on average per year.
BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y13.56%
EPS Next 2Y12.05%
EPS Next 3Y11.39%
EPS Next 5Y10.08%
Revenue Next Year7.52%
Revenue Next 2Y6.44%
Revenue Next 3Y5.85%
Revenue Next 5Y5.43%

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

A Price/Earnings ratio of 28.02 indicates a quite expensive valuation of BR.
BR's Price/Earnings is on the same level as the industry average.
BR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.86.
A Price/Forward Earnings ratio of 23.15 indicates a rather expensive valuation of BR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BR indicates a somewhat cheap valuation: BR is cheaper than 65.48% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BR to the average of the S&P500 Index (21.87), we can say BR is valued inline with the index average.
Industry RankSector Rank
PE 28.02
Fwd PE 23.15

4.2 Price Multiples

BR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, BR is valued a bit cheaper than 61.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.15
EV/EBITDA 20.73

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BR may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)2.59
EPS Next 2Y12.05%
EPS Next 3Y11.39%

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 2.38, BR pays a better dividend. On top of this BR pays more dividend than 89.29% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, BR is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.57%

5.2 History

On average, the dividend of BR grows each year by 14.57%, 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 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

BR pays out 51.24% of its income as dividend. 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.
DP51.24%
EPS Next 2Y12.05%
EPS Next 3Y11.39%

BROADRIDGE FINANCIAL SOLUTIO

NYSE:BR (3/1/2024, 7:04:56 PM)

After market: 203.74 0 (0%)

203.74

+0.16 (+0.08%)

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 Cap23.99B
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
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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 28.02
Fwd PE 23.15
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)2.59
Profitability
Industry RankSector Rank
ROA 8.55%
ROE 33.07%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.04%
PM (TTM) 10.82%
GM 29.93%
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 RankSector Rank
Debt/Equity 1.77
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.4
Quick Ratio 1.4
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)
Growth
EPS 1Y (TTM)14.85%
EPS 3Y11.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.37%
Revenue growth 3Y10.2%
Revenue growth 5Y
Revenue growth 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