Executive Summary
Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Broadridge Financial Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 5B9 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.7%
5B9
-2.5%
DE IT
0.05%
DE Market
1 Year Return
-6.0%
5B9
43.9%
DE IT
3.4%
DE Market
Return vs Industry: 5B9 underperformed the German IT industry which returned 49.2% over the past year.
Return vs Market: 5B9 underperformed the German Market which returned 4.5% over the past year.
Shareholder returns
| 5B9 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -2.5% | 0.05% |
| 30 Day | 3.8% | -43.6% | 5.5% |
| 90 Day | 13.4% | -47.9% | 19.9% |
| 1 Year | -4.2%-6.0% | 45.1%43.9% | 5.7%3.4% |
| 3 Year | 80.0%71.1% | -12.8%-14.6% | 3.4%-4.7% |
| 5 Year | 147.4%125.7% | 48.2%42.6% | 10.4%-4.5% |
Price Volatility Vs. Market
How volatile is Broadridge Financial Solutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Broadridge Financial Solutions undervalued compared to its fair value and its price relative to the market?
34.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 5B9 (€110) is trading above our estimate of fair value (€93.72)
Significantly Below Fair Value: 5B9 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 5B9 is poor value based on its PE Ratio (35x) compared to the DE IT industry average (27.9x).
PE vs Market: 5B9 is poor value based on its PE Ratio (35x) compared to the German market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: 5B9 is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: 5B9 is overvalued based on its PB Ratio (12.1x) compared to the DE IT industry average (3.4x).
Next Steps
Future Growth
How is Broadridge Financial Solutions forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
11.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 5B9's forecast earnings growth (11.4% per year) is above the savings rate (0.2%).
Earnings vs Market: 5B9's earnings (11.4% per year) are forecast to grow slower than the German market (22.3% per year).
High Growth Earnings: 5B9's earnings are forecast to grow, but not significantly.
Revenue vs Market: 5B9's revenue (4% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: 5B9's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if 5B9's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Broadridge Financial Solutions performed over the past 5 years?
12.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 5B9 has high quality earnings.
Growing Profit Margin: 5B9's current net profit margins (9.5%) are lower than last year (11.3%).
Past Earnings Growth Analysis
Earnings Trend: 5B9's earnings have grown by 12.1% per year over the past 5 years.
Accelerating Growth: 5B9's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 5B9 had negative earnings growth (-17.7%) over the past year, making it difficult to compare to the IT industry average (21.7%).
Return on Equity
High ROE: Whilst 5B9's Return on Equity (34.6%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Broadridge Financial Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: 5B9's short term assets ($1.4B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: 5B9's short term assets ($1.4B) do not cover its long term liabilities ($2.5B).
Debt to Equity History and Analysis
Debt Level: 5B9's debt to equity ratio (172.9%) is considered high.
Reducing Debt: 5B9's debt to equity ratio has increased from 70.1% to 172.9% over the past 5 years.
Debt Coverage: 5B9's debt is well covered by operating cash flow (26.7%).
Interest Coverage: 5B9's interest payments on its debt are well covered by EBIT (10.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Broadridge Financial Solutions's current dividend yield, its reliability and sustainability?
1.70%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 5B9's dividend (1.7%) is higher than the bottom 25% of dividend payers in the German market (1.24%).
High Dividend: 5B9's dividend (1.7%) is low compared to the top 25% of dividend payers in the German market (3.77%).
Stability and Growth of Payments
Stable Dividend: 5B9's dividends per share have been stable in the past 10 years.
Growing Dividend: 5B9's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (58.1%), 5B9's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 5B9's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Tim Gokey (58yo)
1.5yrs
Tenure
US$7,285,994
Compensation
Mr. Timothy C. Gokey, also known as Tim, has been Chief Executive Officer of Broadridge Financial Solutions, Inc. January 02, 2019. He served as Chief Operating Officer at Broadridge Financial Solutions, I ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD7.29M) is above average for companies of similar size in the German market ($USD5.06M).
Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.5yrs | US$7.29m | 0.057% $7.1m | |
| President | 0.33yr | US$3.66m | 0.036% $4.6m | |
| Corporate Senior VP & CFO | 6.08yrs | US$3.18m | 0.018% $2.2m | |
| Corporate VP & General Counsel | 13.33yrs | US$2.51m | 0.015% $1.9m | |
| Corporate Senior VP & President of Investor Communication Solutions | 9.5yrs | US$4.01m | 0.040% $5.1m | |
| Corporate VP of Broadridge International and President of Global Technology & Operations | no data | no data | 0.0017% $214.3k | |
| Chief Technology & Product Officer | 1.5yrs | no data | no data | |
| Chief Information Officer | 0.50yr | US$2.60m | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Corporate VP | 3.33yrs | no data | 0.0063% $791.6k | |
| Global Head of Corporate Communications | no data | no data | no data | |
| Chief Marketing Officer | 3.17yrs | no data | no data |
3.2yrs
Average Tenure
58.5yo
Average Age
Experienced Management: 5B9's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.5yrs | US$7.29m | 0.057% $7.1m | |
| Independent Director | 2.67yrs | US$259.61k | no data | |
| Independent Director | 13.33yrs | US$270.61k | 0.041% $5.1m | |
| Lead Independent Director | 1.5yrs | US$347.79k | 0.011% $1.4m | |
| Independent Director | 5.17yrs | US$248.86k | no data | |
| Independent Director | 10.67yrs | US$243.36k | 0.011% $1.4m | |
| Independent Director | 7.33yrs | US$255.61k | 0.0068% $853.3k | |
| Independent Director | 10.67yrs | US$254.11k | 0.0082% $1.0m | |
| Independent Director | 1.08yrs | US$21.25k | no data |
5.2yrs
Average Tenure
65yo
Average Age
Experienced Board: 5B9's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 5B9 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Broadridge Financial Solutions, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Broadridge Financial Solutions, Inc.
- Ticker: 5B9
- Exchange: DB
- Founded: 1962
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$14.366b
- Listing Market Cap: US$12.605b
- Shares outstanding: 114.82m
- Website: https://www.broadridge.com
Number of Employees
Location
- Broadridge Financial Solutions, Inc.
- 5 Dakota Drive
- Suite 300
- Lake Success
- New York
- 11042
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 2007 |
| 5B9 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 2007 |
| 0HPW | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 2007 |
| B1RF34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry worldwide. The company’s Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and offers ProxyEdge, an electronic proxy delivery and voting solution. It also distributes regulatory reports and corporate action/reorganization event information, as well as tax reporting solutions; and provides end-to-end platform for content management, composition, and multi-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services. In addition, this segment offers registered proxy, registrar, stock transfer, and record-keeping services; customer communication solutions; cloud-based marketing and customer communication tools; and customer and account data aggregation and reporting services, as well as creates sales and educational content, including seminars and a library of financial planning topics. Further, it provides mutual fund and retirement, and mutual fund trade processing services; and customizable advisor Websites, search engine marketing, and electronic and print newsletters. The company’s Global Technology and Operations segment offers desktop productivity tools, data aggregation, performance reporting, portfolio management, order capture and execution, trade confirmation, margin, cash management, clearance and settlement, asset servicing, reference data management, reconciliations, securities financing and collateral optimization, compliance and regulatory reporting, and accounting. It also provides capital market, wealth management, asset management, and international securities processing solutions, as well as managed services. The company was founded in 1962 and is headquartered in Lake Success, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/14 21:37 |
| End of Day Share Price | 2020/07/14 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.