BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
NYSE:BR - US11133T1034 - Common Stock
257.29 USD
+0.6 (+0.23%)
257.29 USD
0 (0%)
Overall BR gets a fundamental rating of 5 out of 10. We evaluated BR against 83 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
BR had positive earnings in the past year.
BR had a positive operating cash flow in the past year.
BR had positive earnings in each of the past 5 years.
Each year in the past 5 years BR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BR (9.82%) is better than 85.54% of its industry peers.
The Return On Equity of BR (31.62%) is better than 95.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.13%, BR belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 22.12%.
The last Return On Invested Capital (14.13%) for BR is above the 3 year average (12.91%), which is a sign of increasing profitability.
| 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
The Profit Margin of BR (12.19%) is better than 86.75% of its industry peers.
In the last couple of years the Profit Margin of BR has grown nicely.
The Operating Margin of BR (17.25%) is better than 91.57% 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 42.17% of its industry peers.
BR's Gross Margin has improved in the last couple of years.
| 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
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
The number of shares outstanding for BR has been increased compared to 5 years ago.
BR has a better debt/assets ratio than last year.
2.2 Solvency
BR has an Altman-Z score of 4.95. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.95, BR is doing good in the industry, outperforming 73.49% of the companies in the same industry.
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 has a Debt to FCF ratio of 3.08. This is in the better half of the industry: BR outperforms 65.06% of its industry peers.
BR has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
BR has a worse Debt to Equity ratio (1.04) than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.95 |
ROIC/WACC1.53
WACC9.23%
2.3 Liquidity
A Current Ratio of 0.98 indicates that BR may have some problems paying its short term obligations.
BR has a worse Current ratio (0.98) than 79.52% of its industry peers.
A Quick Ratio of 0.98 indicates that BR may have some problems paying its short term obligations.
The Quick ratio of BR (0.98) is worse than 78.31% 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 10.47% 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%.
Measured over the past years, BR shows a quite strong growth in Revenue. The Revenue has been growing by 8.75% on average per year.
EPS 1Y (TTM)10.47%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%1.43%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%6.22%
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 10.64% on average per year.
BR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.33% yearly.
EPS Next Y12.65%
EPS Next 2Y11%
EPS Next 3Y10.85%
EPS Next 5Y10.64%
Revenue Next Year4.89%
Revenue Next 2Y5.01%
Revenue Next 3Y2.95%
Revenue Next 5Y5.33%
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.
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 30.09 indicates a quite expensive valuation of BR.
BR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.08, BR is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.71, the valuation of BR can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as BR.
BR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 26.71 |
4.2 Price Multiples
BR's Enterprise Value to EBITDA is on the same level as the industry average.
BR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.53 | ||
| EV/EBITDA | 21.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)2.69
EPS Next 2Y11%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
BR has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.44, BR pays a better dividend. On top of this BR pays more dividend than 85.54% of the companies listed in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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%
EPS Next 3Y10.85%
257.29
+0.6 (+0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.95%
Inst Owner Change-4.72%
Ins Owners0.44%
Ins Owner Change-6.13%
Market Cap30.14B
Analysts76.67
Price Target281.15 (9.27%)
Short Float %1.26%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)8%
PT rev (3m)15.46%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)1.13%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 26.71 | ||
| P/S | 4.37 | ||
| P/FCF | 28.53 | ||
| P/OCF | 25.73 | ||
| P/B | 11.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.61 |
EPS(TTM)8.55
EY3.32%
EPS(NY)9.63
Fwd EY3.74%
FCF(TTM)9.02
FCFY3.51%
OCF(TTM)10
OCFY3.89%
SpS58.82
BVpS22.67
TBVpS-19.05
PEG (NY)2.38
PEG (5Y)2.69
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%
ROICexcg growth 3Y37.85%
ROICexcg 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 | 4.95 |
F-Score8
WACC9.23%
ROIC/WACC1.53
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)10.47%
EPS 3Y9.74%
EPS 5Y11.19%
EPS Q2Q%1.43%
EPS Next Y12.65%
EPS Next 2Y11%
EPS Next 3Y10.85%
EPS Next 5Y10.64%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%6.22%
Revenue Next Year4.89%
Revenue Next 2Y5.01%
Revenue Next 3Y2.95%
Revenue Next 5Y5.33%
EBIT growth 1Y16.87%
EBIT growth 3Y16.08%
EBIT growth 5Y13.72%
EBIT Next Year30.34%
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%