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

Fundamentals

Established dividend payer with acceptable track record.


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


Market Performance


7 Day Return

-2.9%

BR

-4.6%

US IT

0.07%

US Market


1 Year Return

4.1%

BR

19.0%

US IT

8.9%

US Market

Return vs Industry: BR underperformed the US IT industry which returned 19% over the past year.

Return vs Market: BR underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

BRIndustryMarket
7 Day-2.9%-4.6%0.07%
30 Day-4.0%-3.7%-0.3%
90 Day-9.3%-7.8%-1.6%
1 Year5.9%4.1%20.2%19.0%11.3%8.9%
3 Year96.7%87.0%88.3%80.6%46.3%36.8%
5 Year208.3%180.9%136.9%115.2%62.1%44.3%

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?

29.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BR ($121.67) is trading above our estimate of fair value ($112.75)

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


Price To Earnings Ratio

PE vs Industry: BR is good value based on its PE Ratio (29.3x) compared to the IT industry average (36.1x).

PE vs Market: BR is poor value based on its PE Ratio (29.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BR is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: BR is overvalued based on its PB Ratio (12.3x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Broadridge Financial Solutions forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BR's forecast earnings growth (8.6% per year) is above the savings rate (2.7%).

Earnings vs Market: BR's earnings (8.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: BR's revenue (4.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BR's revenue (4.2% 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 very high in 3 years time (56%).


Next Steps

Past Performance

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

14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BR's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: BR's earnings growth over the past year (12.7%) is below its 5-year average (14% per year).

Earnings vs Industry: BR earnings growth over the past year (12.7%) exceeded the IT industry 9.8%.


Return on Equity

High ROE: Whilst BR's Return on Equity (42.76%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BR has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: BR's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities ($802.6M)

Long Term Liabilities: BR's short term assets (1.0B) do not cover its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: BR's debt to equity ratio (130.4%) is considered high

Reducing Debt: BR's debt to equity ratio has increased from 54.5% to 130.4% over the past 5 years.

Debt Coverage: BR's debt is well covered by operating cash flow (42%).

Interest Coverage: BR's interest payments on its debt are well covered by EBIT (15.7x 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 0.7x debt).


Next Steps

Dividend

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

1.78%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BR's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BR's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 reasonably low payout ratio (46.6%), BR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BR's dividends in 3 years are forecast to be well covered by earnings (42.6% payout ratio).


Next Steps

Management

What is the CEO of Broadridge Financial Solutions's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Tim Gokey (57yo)

0.8yrs

Tenure

US$7,285,994

Compensation

Mr. Timothy C. Gokey, also known as Tim, has been the President and Chief Executive Officer of Broadridge Financial Solutions, Inc. since September 1, 2017 and January 02, 2019, respectively and served as  ...


CEO Compensation Analysis

Compensation vs. Market: Tim has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.7yrs

Average Tenure

58yo

Average Age

Experienced Management: BR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

5.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: BR's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$3,969,77123 Sep 19
Richard Daly
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares31,202
Max PriceUS$127.23
SellUS$290,57204 Sep 19
Thomas Carey
EntityIndividual
Shares2,258
Max PriceUS$128.69
SellUS$2,281,43322 Aug 19
Douglas DeSchutter
EntityIndividual
Shares17,500
Max PriceUS$130.37
SellUS$1,060,64311 Jun 19
Robert Kalenka
EntityIndividual
Shares8,000
Max PriceUS$132.58
SellUS$2,023,51103 Jun 19
Douglas DeSchutter
EntityIndividual
Shares16,200
Max PriceUS$124.91
SellUS$1,875,18629 May 19
Robert Schifellite
EntityIndividual
Role
Senior Key Executive
Corporate Senior VP & President of Investor Communication Solutions
Shares15,000
Max PriceUS$125.01
SellUS$2,988,76528 May 19
Douglas DeSchutter
EntityIndividual
Shares24,399
Max PriceUS$122.50
SellUS$912,79521 May 19
Leslie Brun
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares7,500
Max PriceUS$121.71
SellUS$461,08414 May 19
Laura Matlin
EntityIndividual
Role
Chief Compliance Officer
Corporate VP
Shares3,875
Max PriceUS$118.99
SellUS$12,84109 Apr 19
Thomas Carey
EntityIndividual
Shares118
Max PriceUS$108.82

Ownership Breakdown


Management Team

  • Rich Daly (66yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$10.33m
  • Tim Gokey (57yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$7.29m
  • Bob Schifellite (61yo)

    Corporate Senior VP & President of Investor Communication Solutions

    • Tenure: 8.8yrs
    • Compensation: US$4.01m
  • Jim Young (48yo)

    Corporate VP & CFO

    • Tenure: 5.3yrs
    • Compensation: US$3.18m
  • Adam Amsterdam (58yo)

    Corporate VP & General Counsel

    • Tenure: 12.6yrs
    • Compensation: US$2.51m
  • Chris Perry (57yo)

    Corporate Senior Vice President of Global Sales

    • Tenure: 0yrs
    • Compensation: US$3.66m
  • Laura Matlin (60yo)

    Corporate VP

    • Tenure: 2.6yrs
  • W. Thibault

    Head of Corporate FP&A and Investor Relations

    • Tenure: 0yrs
  • Mark Schlesinger

    Chief Information Officer

    • Tenure: 0.8yrs
  • Tyler Derr

    Chief Technology & Product Officer

    • Tenure: 0.8yrs

Board Members

  • Rich Daly (66yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$10.33m
  • Pam Carter (69yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$259.61k
  • Stuart Levine (72yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$270.11k
  • Alan Weber (70yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$270.61k
  • Les Brun (67yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$347.79k
  • Brett Keller (51yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$248.86k
  • Tom Perna (69yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$243.36k
  • Tim Gokey (57yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$7.29m
  • Maura Markus (61yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$255.61k
  • Robert Duelks (64yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$254.11k

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$13.925b
  • Shares outstanding: 114.45m
  • 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

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 Analysis2019/10/22 23:56
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.