Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry worldwide.
Established dividend payer and slightly overvalued.
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StIs Broadridge Financial Solutions (NYSE:BR) Using Too Much Debt?
3 weeks ago | Simply Wall StBe Sure To Check Out Broadridge Financial Solutions, Inc. (NYSE:BR) Before It Goes Ex-Dividend
Is Broadridge Financial Solutions undervalued compared to its fair value and its price relative to the market?
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).
How is Broadridge Financial Solutions forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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
How has Broadridge Financial Solutions performed over the past 5 years?
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.
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 ($2.1B).
Debt to Equity History and Analysis
Debt Level: BR's debt to equity ratio (164.3%) is considered high.
Reducing Debt: BR's debt to equity ratio has increased from 53.5% to 164.3% over the past 5 years.
Debt Coverage: BR's debt is well covered by operating cash flow (29.6%).
Interest Coverage: BR's interest payments on its debt are well covered by EBIT (11.9x coverage).
Inventory Level: BR has a low level of unsold assets or inventory.
Debt Coverage by Assets: BR's debt is not covered by short term assets (assets are 0.5x debt).
What is Broadridge Financial Solutions's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BR's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: BR's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (5.4%).
Stability and Growth of Payments
Stable Dividend: BR's dividends per share have been stable in the past 10 years.
Growing Dividend: BR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.9%), BR's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BR's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Gokey (57yo)
Mr. Timothy C. Gokey, also known as Tim, has been Chief Executive Officer of Broadridge Financial Solutions, Inc. January 02, 2019. He served as Chief Operating Officer at Broadridge Financial Solutions, I ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($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.
|Executive Chairman||1.17yrs||US$10.33m||0.22% $23.9m|
|CEO & Director||1.17yrs||US$7.29m||0.050% $5.5m|
|President||no data||US$3.66m||0.034% $3.8m|
|Corporate Senior VP & CFO||5.67yrs||US$3.18m||0.014% $1.5m|
|Corporate VP & General Counsel||13yrs||US$2.51m||0.013% $1.4m|
|Corporate Senior VP & President of Investor Communication Solutions||9.17yrs||US$4.01m||0.051% $5.7m|
|Corporate VP of Broadridge International and President of Global Technology & Operations||no data||no data||0.00064% $71.2k|
|Chief Technology & Product Officer||1.17yrs||no data||no data|
|Chief Information Officer||1.17yrs||no data||no data|
|Head of Investor Relations||no data||no data||no data|
Experienced Management: BR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
|Executive Chairman||1.17yrs||US$10.33m||0.22% $23.9m|
|CEO & Director||1.17yrs||US$7.29m||0.050% $5.5m|
|Independent Director||2.25yrs||US$259.61k||0.0019% $211.5k|
|Independent Director||13yrs||US$270.61k||0.041% $4.5m|
|Lead Independent Director||1.17yrs||US$347.79k||0.011% $1.2m|
|Independent Director||4.83yrs||US$248.86k||0.0047% $527.5k|
|Independent Director||10.25yrs||US$243.36k||0.011% $1.2m|
|Independent Director||7yrs||US$255.61k||0.0068% $753.4k|
|Independent Director||10.25yrs||US$254.11k||0.0082% $914.8k|
|Independent Director||0.67yr||US$21.25k||0.0012% $130.2k|
Experienced Board: BR's board of directors are considered experienced (3.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Broadridge Financial Solutions, Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- Broadridge Financial Solutions, Inc.
- 5 Dakota Drive
- Suite 300
- Lake Success
- New York
- United States
|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|
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||2020/03/31 00:58|
|End of Day Share Price||2020/03/30 00:00|
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.