NYSE:BR

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Broadridge Financial Solutions

Executive Summary

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


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

Volatility Over Time: BR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

BR

5.2%

US IT

2.8%

US Market


1 Year Return

19.2%

BR

28.1%

US IT

20.9%

US Market

Return vs Industry: BR underperformed the US IT industry which returned 28.2% over the past year.

Return vs Market: BR underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

BRIndustryMarket
7 Day1.7%5.2%2.8%
30 Day6.7%14.7%11.1%
90 Day6.4%2.9%6.5%
1 Year21.4%19.2%29.4%28.1%23.6%20.9%
3 Year72.0%63.5%100.2%92.4%47.3%37.6%
5 Year193.5%168.2%175.4%156.2%94.3%72.9%

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?

35.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BR ($147.4) is trading above our estimate of fair value ($106.87)

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 (35.9x) compared to the US IT industry average (36.3x).

PE vs Market: BR is poor value based on its PE Ratio (35.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: BR is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: BR is overvalued based on its PB Ratio (12.1x) compared to the US IT industry average (4x).


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?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BR's forecast earnings growth (8.9% per year) is above the savings rate (2.2%).

Earnings vs Market: BR's earnings (8.9% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: BR's revenue (4.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BR's revenue (4.4% 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 (42.7%).


Next Steps

Past Performance

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

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BR has high quality earnings.

Growing Profit Margin: BR's current net profit margins (10.3%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: BR's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: BR's earnings growth over the past year (2.5%) is below its 5-year average (11.2% per year).

Earnings vs Industry: BR earnings growth over the past year (2.5%) underperformed the IT industry 3.2%.


Return on Equity

High ROE: Whilst BR's Return on Equity (33.41%) 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 ($1.1B) exceed its short term liabilities ($743.9M).

Long Term Liabilities: BR's short term assets ($1.1B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: BR's debt to equity ratio (125.6%) is considered high.

Reducing Debt: BR's debt to equity ratio has increased from 79.5% to 125.6% over the past 5 years.

Debt Coverage: BR's debt is well covered by operating cash flow (36.1%).

Interest Coverage: BR's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.56%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BR's dividend (1.56%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: BR's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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 (53.4%), 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?

1.8yrs

Average management tenure


CEO

Tim Gokey (58 yo)

1.83yrs

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 ($USD9.15M) is about average for companies of similar size in the US market ($USD10.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Daly
Executive Chairman1.83yrsUS$6.52m0.17%
$ 28.3m
Timothy Gokey
CEO & Director1.83yrsUS$9.15m0.078%
$ 13.3m
Christopher Perry
President0.67yrUS$3.12m0.040%
$ 6.8m
Robert Schifellite
Corporate Senior VP & President of Investor Communication Solutions9.83yrsUS$4.11m0.037%
$ 6.3m
Matthew Connor
Corporate VP & Interim CFO0.17yrno datano data
Thomas Carey
Corporate VP and President of Global Technology & Operationsno datano data0.0036%
$ 605.0k
Tyler Derr
Chief Technology & Product Officer1.83yrsno datano data
John Hogan
Chief Information Officer0.83yrUS$2.60mno data
W. Thibault
Head of Investor Relationsno datano datano data
Adam Amsterdam
Corporate VP & General Counsel13.67yrsUS$2.51m0.0099%
$ 1.7m
Laura Matlin
Corporate VP3.67yrsno data0.0062%
$ 1.1m
Gregg Rosenberg
Global Head of Corporate Communicationsno datano datano data

1.8yrs

Average Tenure

59yo

Average Age

Experienced Management: BR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Daly
Executive Chairman1.83yrsUS$6.52m0.17%
$ 28.3m
Timothy Gokey
CEO & Director1.83yrsUS$9.15m0.078%
$ 13.3m
Pamela Carter
Independent Director3yrsUS$287.47k0.0024%
$ 409.0k
Alan Weber
Independent Director13.67yrsUS$296.97k0.040%
$ 6.9m
Leslie Brun
Lead Independent Director1.83yrsUS$364.56k0.011%
$ 1.9m
Brett Keller
Independent Director5.5yrsUS$260.72k0.0056%
$ 959.5k
Thomas Perna
Independent Director11yrsUS$259.72k0.028%
$ 4.8m
Maura Markus
Independent Director7.67yrsUS$271.97k0.0068%
$ 1.2m
Robert Duelks
Independent Director11yrsUS$279.47k0.0082%
$ 1.4m
Amit Zavery
Independent Director1.42yrsUS$258.47k0.0020%
$ 342.6k

4.3yrs

Average Tenure

66yo

Average Age

Experienced Board: BR's board of directors are considered experienced (4.3 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$17.042b
  • Shares outstanding: 115.62m
  • 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 p...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:51
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.