BROADRIDGE FINANCIAL SOLUTIO (BR)
US11133T1034 - Common Stock
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 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.
BR had a positive operating cash flow in the past year.
Each year in the past 5 years BR has been profitable.
Each year in the past 5 years BR had a positive operating cash flow.
1.2 Ratios
BR's Return On Assets of 8.55% is fine compared to the rest of the industry. BR outperforms 76.19% of its industry peers.
BR has a better Return On Equity (33.07%) than 95.24% of its industry peers.
The Return On Invested Capital of BR (11.51%) is better than 80.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is below the industry average of 12.84%.
The last Return On Invested Capital (11.51%) for BR is above the 3 year average (9.86%), which is a sign of increasing profitability.
| Industry Rank | Sector 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 Profit Margin of 10.82%. This is in the better half of the industry: BR outperforms 76.19% of its industry peers.
BR's Profit Margin has been stable in the last couple of years.
BR has a Operating Margin of 16.04%. This is amongst the best in the industry. BR outperforms 88.10% of its industry peers.
In the last couple of years the Operating Margin of BR has grown nicely.
Looking at the Gross Margin, with a value of 29.93%, BR is doing worse than 60.71% of the companies in the same industry.
In the last couple of years the Gross Margin of BR has grown nicely.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, BR has more shares outstanding
BR has more shares outstanding than it did 5 years ago.
BR has a better debt/assets ratio than last year.
2.2 Solvency
BR has an Altman-Z score of 4.14. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.14, BR is doing good in the industry, outperforming 73.81% 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's Debt to FCF ratio of 3.83 is in line compared to the rest of the industry. BR outperforms 58.33% of 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 Debt to Equity ratio of 1.77. This is in the lower half of the industry: BR underperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.08
WACC10.65%
2.3 Liquidity
BR has a Current 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.
With a Current ratio value of 1.40, BR perfoms like the industry average, outperforming 47.62% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.85% over the past year.
The Earnings Per Share has been growing by 10.84% on average over the past years. This is quite good.
BR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.37%.
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.
The Revenue is expected to grow by 5.43% on average over the next years.
EPS Next Y13.74%
EPS Next 2Y12.02%
EPS Next 3Y11.33%
EPS Next 5Y10.08%
Revenue Next Year7.39%
Revenue Next 2Y6.48%
Revenue Next 3Y6.09%
Revenue Next 5Y5.43%
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
The Price/Earnings ratio is 26.71, which means the current valuation is very expensive for BR.
BR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.92. BR is around the same levels.
BR is valuated rather expensively with a Price/Forward Earnings ratio of 22.07.
61.90% of the companies in the same industry are more expensive than BR, based on the Price/Forward Earnings ratio.
BR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.71 | ||
| Fwd PE | 22.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BR.
60.71% of the companies in the same industry are more expensive than BR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.97 | ||
| EV/EBITDA | 20 |
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)1.94
PEG (5Y)2.46
EPS Next 2Y12.02%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.64%.
BR's Dividend Yield is rather good when compared to the industry average which is at 2.79. BR pays more dividend than 86.90% of the companies in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
BR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.24%
EPS Next 2Y12.02%
EPS Next 3Y11.33%
BROADRIDGE FINANCIAL SOLUTIO
NYSE:BR (4/26/2024, 7:04:01 PM)
After market: 194.15 0 (0%)194.15
-1.41 (-0.72%)
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 Cap22.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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(16)
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Revenue beat(2)
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Revenue beat(4)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.71 | ||
| Fwd PE | 22.07 | ||
| 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)1.94
PEG (5Y)2.46
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 Y13.74%
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