BROADRIDGE FINANCIAL SOLUTIO (BR) Stock Fundamental Analysis
USA - NYSE:BR - US11133T1034 - Common Stock
236.43 USD
-0.47 (-0.2%)
Overall BR gets a fundamental rating of 5 out of 10. We evaluated BR against 86 industry peers in the IT Services industry. BR scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, BR is valued expensive at the moment.
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.
BR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BR has a Return On Assets of 9.82%. This is amongst the best in the industry. BR outperforms 84.88% of its industry peers.
The Return On Equity of BR (31.62%) is better than 95.35% of its industry peers.
BR's Return On Invested Capital of 14.13% is amongst the best of the industry. BR outperforms 86.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BR is significantly below the industry average of 21.42%.
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
BR's Profit Margin of 12.19% is amongst the best of the industry. BR outperforms 88.37% of its industry peers.
In the last couple of years the Profit Margin of BR has grown nicely.
Looking at the Operating Margin, with a value of 17.25%, BR belongs to the top of the industry, outperforming 91.86% of the companies in the same industry.
BR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.02%, BR perfoms like the industry average, outperforming 43.02% 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 | 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.
BR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BR has more shares outstanding
Compared to 1 year ago, BR has an improved debt to assets ratio.
2.2 Solvency
BR has an Altman-Z score of 4.72. This indicates that BR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BR (4.72) is better than 69.77% of its industry peers.
The Debt to FCF ratio of BR is 3.08, which is a good value as it means it would take BR, 3.08 years of fcf income to pay off all of its debts.
BR has a better Debt to FCF ratio (3.08) than 65.12% 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.
Looking at the Debt to Equity ratio, with a value of 1.04, BR is doing worse than 68.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.72 |
ROIC/WACC1.71
WACC8.27%
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.
The Current ratio of BR (0.98) is worse than 79.07% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.98, BR is doing worse than 77.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
BR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.47%, 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 11.19% yearly.
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)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
BR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.64% yearly.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y12.72%
EPS Next 2Y11.01%
EPS Next 3Y10.86%
EPS Next 5Y10.64%
Revenue Next Year4.93%
Revenue Next 2Y5.07%
Revenue Next 3Y5.28%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.65, the valuation of BR can be described as expensive.
BR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BR to the average of the S&P500 Index (27.76), we can say BR is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.53, BR is valued on the expensive side.
BR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.21. BR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 24.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BR.
BR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.21 | ||
| EV/EBITDA | 20.08 |
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 excellent profitability rating of BR may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)2.47
EPS Next 2Y11.01%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, BR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.48, BR pays a better dividend. On top of this BR pays more dividend than 87.21% of the companies listed in the same industry.
BR's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of BR is nicely growing with an annual growth rate of 10.38%!
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)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.
The dividend of BR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.92%
EPS Next 2Y11.01%
EPS Next 3Y10.86%
NYSE:BR (10/8/2025, 12:42:04 PM)
236.43
-0.47 (-0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners93.49%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change-1.18%
Market Cap27.69B
Analysts76.67
Price Target283.17 (19.77%)
Short Float %1.28%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)0.72%
PT rev (3m)8.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 24.53 | ||
| P/S | 4.02 | ||
| P/FCF | 26.21 | ||
| P/OCF | 23.64 | ||
| P/B | 10.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.08 |
EPS(TTM)8.55
EY3.62%
EPS(NY)9.64
Fwd EY4.08%
FCF(TTM)9.02
FCFY3.81%
OCF(TTM)10
OCFY4.23%
SpS58.82
BVpS22.67
TBVpS-19.05
PEG (NY)2.17
PEG (5Y)2.47
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 | 4.72 |
F-Score8
WACC8.27%
ROIC/WACC1.71
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 Y12.72%
EPS Next 2Y11.01%
EPS Next 3Y10.86%
EPS Next 5Y10.64%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y6.46%
Revenue growth 5Y8.75%
Sales Q2Q%6.22%
Revenue Next Year4.93%
Revenue Next 2Y5.07%
Revenue Next 3Y5.28%
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%