Broadridge Financial Solutions Inc
Exchange: NYSESector: TechnologyIndustry: Information Technology Services
Broadridge Financial Solutions is a global technology leader with trusted expertise and transformative technology, helping clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. Our technology and operations platforms process and generate over 7 billion communications annually and underpin the daily average trading of over $15 trillion in tokenized and traditional securities globally. A certified Great Place to Work ®, Broadridge is part of the S&P 500 ® Index, employing over 15,000 associates in 21 countries.
Did you know?
Carries 5.8x more debt than cash on its balance sheet.
Current Price
$155.95
-2.92%GoodMoat Value
$208.26
33.5% undervaluedProfile
Valuation (TTM)
Market Cap$18.20B
P/E17.06
EV$22.74B
P/B6.86
Shares Out116.73M
P/Sales2.54
Revenue$7.18B
EV/EBITDA11.85
Broadridge Financial Solutions Inc (BR) Stock Analysis
GoodMoat Analysis
Broadridge is a financial technology and data services provider with a strong, durable moat built on high switching costs and regulatory complexity. Its high ROE of 40.2% and consistent cash flow suggest a quality business, and it appears favourably priced with a GoodMoat Target implying a margin of safety above 20%.
Read full analysis
Broadridge Financial Solutions provides critical investor communications, data, and technology solutions to banks, broker-dealers, and asset managers. Its core business involves processing proxy statements and facilitating shareholder voting, a highly regulated and mission-critical function. This creates a powerful moat based on significant switching costs (Section 1, criteria 2) and regulatory barriers (criteria 5), as migrating this complex, compliance-heavy service is prohibitively expensive for clients. The company likely scores well on niche dominance (criteria 10) as a leading provider in this essential market. Financially, Broadridge exhibits high-quality indicators with a robust ROE of 40.2%, far exceeding the 15-20% threshold for high ROIC, and a solid free cash flow yield of 5.9%. Revenue growth of 7.8% YoY is moderate but consistent. Applying the Decision Framework, the business passes the Moat & Quality Gate. On valuation, the current P/E of 17.9x is reasonable for a stable business. The provided GoodMoat Target of $208.26, compared to the current price of $163.36, suggests a margin of safety of approximately 27.5%, which falls into the 'Favourable' 20-40% band in Section 4. This indicates the stock is trading at a discount to its estimated intrinsic value. For a value investor, Broadridge represents a company with a defendable, recurring revenue model, strong profitability, and a price that warrants further investigation. Analysis based on data as of 2024-05-15.
Market Cap$18.20B
Current Price$155.95
P/E Ratio17.06
Forward P/E—
PEG Ratio0.17
EPS$7.10
Book Value$22.75
P/B Ratio6.86
BR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 12.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.7B
Revenue
4.4B
FY19
4.5B
FY20
5.0B
FY21
5.7B
FY22
6.1B
FY23
6.5B
FY24
6.9B
FY25
Net Income
482M
FY19
463M
FY20
548M
FY21
539M
FY22
631M
FY23
698M
FY24
840M
FY25
BR 52-Week Range
$151.12
$263.31
50-Day MA: $170.70200-Day MA: $215.54
Did you know?
Profit margin stands at 14.9%.
Broadridge Financial Solutions Inc (BR) Financial Summary
Broadridge Financial Solutions Inc (BR) is a Technology company in the Information Technology Services industry, listed on NYSE. The stock currently trades at $155.95 with a market capitalization of $18.20B.
Key valuation metrics include a P/E ratio of 17.06, price-to-book ratio of 6.86, and EPS of $7.10. The company reports a profit margin of 14.9% and return on equity of 40.2%.
BR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $18.20B |
| P/E Ratio | 17.06 |
| EPS | $7.10 |
| P/B Ratio | 6.86 |
| P/S Ratio | 2.54 |
| EV/EBITDA | 11.85 |
| Dividend Yield | 2.21% |
| Profit Margin | 14.9% |
| Return on Equity | 40.2% |
| Debt/Equity | 1.22 |
BR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.36B | $482.10M |
| FY20 | $4.53B | $462.50M |
| FY21 | $4.99B | $547.50M |
| FY22 | $5.71B | $539.10M |
| FY23 | $6.06B | $630.60M |
| FY24 | $6.51B | $698.10M |
| FY25 | $6.89B | $839.50M |
Broadridge Financial Solutions Inc (BR) Valuation
Based on GoodMoat's DCF model, Broadridge Financial Solutions Inc has a fair value estimate of $208.26. At the current price of $155.95, the stock appears 25.1% undervalued relative to our intrinsic value estimate.
BR Quality Indicators
Broadridge Financial Solutions Inc maintains a profit margin of 14.9% and an operating margin of 17.3%. Return on equity stands at 40.2%. The current ratio is 0.98. Debt-to-equity ratio is 1.22.
About Broadridge Financial Solutions Inc
Broadridge Financial Solutions is a global technology leader with trusted expertise and transformative technology, helping clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. Our technology and operations platforms process and generate over 7 billion communications annually and underpin the daily average trading of over $15 trillion in tokenized and traditional securities globally. A certified Great Place to Work ®, Broadridge is part of the S&P 500 ® Index, employing over 15,000 associates in 21 countries.
BR Free Cash Flow
Broadridge Financial Solutions Inc generated $1.13B in trailing twelve-month free cash flow, representing an FCF yield of 6.19%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
BR Shares Outstanding
Broadridge Financial Solutions Inc has 0.12 billion shares outstanding at a share price of $155.95, giving it a market capitalization of $18.20B.
BR Recent Insider Trades
Recent insider transactions at Broadridge Financial Solutions Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Gokey Timothy C (CEO) | BUY | 5,300 | $1.03M |
| Duelks Robert N | SELL | 253 | $48727.80 |