NYSE:BR

Stock Analysis Report

Broadridge Financial Solutions

Executive Summary

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


Snowflake Analysis

Established dividend payer and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

BR

8.3%

US IT

7.2%

US Market


1 Year Return

-7.8%

BR

-2.8%

US IT

-10.4%

US Market

Return vs Industry: BR underperformed the US IT industry which returned -2.8% over the past year.

Return vs Market: BR exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

BRIndustryMarket
7 Day2.2%8.3%7.2%
30 Day-7.1%-12.6%-12.6%
90 Day-21.5%-15.2%-19.4%
1 Year-6.1%-7.8%-1.8%-2.8%-8.5%-10.4%
3 Year52.4%44.8%63.1%56.0%15.8%8.3%
5 Year95.1%78.0%92.0%75.1%35.8%21.0%

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?

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BR ($96.94) is trading below our estimate of fair value ($121.93)

Significantly Below Fair Value: BR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BR is poor value based on its PE Ratio (26.4x) compared to the IT industry average (24.2x).

PE vs Market: BR is poor value based on its PE Ratio (26.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: BR is overvalued based on its PB Ratio (9.9x) compared to the US IT industry average (2.8x).


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?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BR's forecast earnings growth (13.2% per year) is above the savings rate (1.7%).

Earnings vs Market: BR's earnings (13.2% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: BR's revenue (4.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BR's revenue (4.3% 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 BR'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?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BR has high quality earnings.

Growing Profit Margin: BR's current net profit margins (9.7%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: BR's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: BR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BR had negative earnings growth (-4.7%) over the past year, making it difficult to compare to the IT industry average (13.4%).


Return on Equity

High ROE: Whilst BR's Return on Equity (37.45%) 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: BR's short term assets ($1.0B) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: BR's short term assets ($1.0B) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: BR's debt to equity ratio (164.3%) is considered high.

Reducing Debt: BR's debt to equity ratio has increased from 53.5% to 164.3% over the past 5 years.

Debt Coverage: BR's debt is well covered by operating cash flow (29.6%).

Interest Coverage: BR's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

Inventory Level: BR has a low level of unsold assets or inventory.

Debt Coverage by Assets: BR's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BR's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: BR's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (5.4%).


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 (55.9%), 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 (38.7% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Tim Gokey (57yo)

1.17s

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 ($USD7.29M) is below average for companies of similar size in the US market ($USD11.74M).

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

NamePositionTenureCompensationOwnership
Richard Daly
Executive Chairman1.17yrsUS$10.33m0.22% $23.9m
Timothy Gokey
CEO & Director1.17yrsUS$7.29m0.050% $5.5m
Christopher Perry
Presidentno dataUS$3.66m0.034% $3.8m
James Young
Corporate Senior VP & CFO5.67yrsUS$3.18m0.014% $1.5m
Adam Amsterdam
Corporate VP & General Counsel13yrsUS$2.51m0.013% $1.4m
Robert Schifellite
Corporate Senior VP & President of Investor Communication Solutions9.17yrsUS$4.01m0.051% $5.7m
Thomas Carey
Corporate VP of Broadridge International and President of Global Technology & Operationsno datano data0.00064% $71.2k
Tyler Derr
Chief Technology & Product Officer1.17yrsno datano data
Mark Schlesinger
Chief Information Officer1.17yrsno datano data
W. Thibault
Head of Investor Relationsno datano datano data

1.2yrs

Average Tenure

57yo

Average Age

Experienced Management: BR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Daly
Executive Chairman1.17yrsUS$10.33m0.22% $23.9m
Timothy Gokey
CEO & Director1.17yrsUS$7.29m0.050% $5.5m
Pamela Carter
Independent Director2.25yrsUS$259.61k0.0019% $211.5k
Alan Weber
Independent Director13yrsUS$270.61k0.041% $4.5m
Leslie Brun
Lead Independent Director1.17yrsUS$347.79k0.011% $1.2m
Brett Keller
Independent Director4.83yrsUS$248.86k0.0047% $527.5k
Thomas Perna
Independent Director10.25yrsUS$243.36k0.011% $1.2m
Maura Markus
Independent Director7yrsUS$255.61k0.0068% $753.4k
Robert Duelks
Independent Director10.25yrsUS$254.11k0.0082% $914.8k
Amit Zavery
Independent Director0.67yrUS$21.25k0.0012% $130.2k

3.5yrs

Average Tenure

65yo

Average Age

Experienced Board: BR's board of directors are considered experienced (3.5 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 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: BR
  • Exchange: NYSE
  • Founded: 1962
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$11.129b
  • Shares outstanding: 114.80m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2007
5B9DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2007
0HPWLSE (London Stock Exchange)YesCommon StockGBUSDMar 2007
B1RF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:58
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.