NYSE:BR

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Broadridge Financial Solutions

Market Cap

US$22.6b

Last Updated

2021/08/01 22:13 UTC

Data Sources

Company Financials +

Executive Summary

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry worldwide. More Details


Snowflake Analysis

Solid track record established dividend payer.


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: BR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BR's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

BR

-2.7%

US IT

-0.4%

US Market


1 Year Return

29.1%

BR

30.7%

US IT

35.9%

US Market

Return vs Industry: BR underperformed the US IT industry which returned 30.7% over the past year.

Return vs Market: BR underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

BRIndustryMarket
7 Day0.6%-2.7%-0.4%
30 Day5.5%1.2%-0.3%
90 Day8.4%4.7%3.1%
1 Year31.2%29.1%31.9%30.7%38.0%35.9%
3 Year58.8%50.9%100.2%93.6%62.9%52.7%
5 Year174.9%152.3%219.9%197.4%121.3%96.9%

Long-Term 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

Valuation

Is Broadridge Financial Solutions undervalued compared to its fair value and its price relative to the market?

38.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BR ($173.49) is trading above our estimate of fair value ($150.68)

Significantly Below Fair Value: BR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BR is poor value based on its PE Ratio (38.8x) compared to the US IT industry average (35.8x).

PE vs Market: BR is poor value based on its PE Ratio (38.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BR is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: BR is overvalued based on its PB Ratio (12.7x) compared to the US IT industry average (5.2x).


Future Growth

How is Broadridge Financial Solutions forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BR's forecast earnings growth (10.1% per year) is above the savings rate (2%).

Earnings vs Market: BR's earnings (10.1% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: BR's earnings are forecast to grow, but not significantly.

Revenue vs Market: BR's revenue (5.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: BR's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BR's Return on Equity is forecast to be high in 3 years time (36.9%)


Past Performance

How has Broadridge Financial Solutions performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BR has high quality earnings.

Growing Profit Margin: BR's current net profit margins (10.7%) are higher than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: BR's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: BR's earnings growth over the past year (24.2%) exceeds its 5-year average (11% per year).

Earnings vs Industry: BR earnings growth over the past year (24.2%) exceeded the IT industry 19.3%.


Return on Equity

High ROE: Whilst BR's Return on Equity (32.52%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Broadridge Financial Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: BR's short term assets ($1.4B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: BR's short term assets ($1.4B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: BR's debt to equity ratio (109.3%) is considered high.

Reducing Debt: BR's debt to equity ratio has increased from 90.9% to 109.3% over the past 5 years.

Debt Coverage: BR's debt is well covered by operating cash flow (36.4%).

Interest Coverage: BR's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Dividend

What is Broadridge Financial Solutions's current dividend yield, its reliability and sustainability?

1.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BR's dividend (1.33%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: BR's dividend (1.33%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: BR's dividends per share have been stable in the past 10 years.

Growing Dividend: BR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.6%), BR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BR's dividends in 3 years are forecast to be well covered by earnings (38.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Tim Gokey (59 yo)

2.5yrs

Tenure

US$9,149,408

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 ($USD9.15M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BR's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: BR's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.7%.


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: BR
  • Exchange: NYSE
  • Founded: 1962
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$22.641b
  • Shares outstanding: 130.50m
  • 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


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 p...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:13
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.