Broadridge Financial Solutions (BR) AI Stock Analysis

• Market Cap: $27.44B
• Dividend Yield: 1.46%
• Average Volume (3M): 590.21K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.62
• Revenue Growth: 5.73%
• EPS Growth: 13.40%
• Country: US
• Employees: 14,000
• Sector: Technology
• Sector Strength: 67
• Industry: Information Technology Services
• EPS (TTM): 2.44
• Shares Outstanding: 117,463,440
• 10 Day Avg. Volume: 611,184
• 30 Day Avg. Volume: 590,210
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 16.57
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $254.80
• Price Target Upside: 7.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Broadridge Financial Solutions receives a strong overall score due to its robust financial performance, positive earnings outlook, and strategic growth initiatives. The technical indicators support a stable trend, while the valuation suggests a slight overvaluation. Despite some market uncertainties, the company's high revenue retention and strategic positioning provide confidence in its growth trajectory.

Positive Factors

Financial Flexibility

Broadridge retains significant capital allocation flexibility and can adjust buybacks, which provides financial maneuverability.

Market Position

Broadridge is well positioned to deliver consistent recurring revenue growth in the mid- to high-single digits in the medium term, driven by favorable demographics and growing complexities in investment markets.

Product Offerings

BR's continued focus on expanding its product offerings has created a positive secular tailwind to drive organic growth.

Negative Factors

Price Target

The $250 price target suggests limited upside from current levels.

Sales Performance

Modest deal slippage contributed to the (21)% y/y deceleration in closed sales, although some deals have been closed and the remainder is expected to close soon.

Valuation Concerns

Shares of BR are currently trading at 26.5x NTM EPS, representing a 4.4x premium to the S&P, suggesting a relatively full valuation with limited multiple expansion upside.

Broadridge Financial Solutions Business Overview & Revenue Model

Company Description

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. 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 distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions. It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; data and analytics solutions; solutions for public corporations and mutual funds; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities. The company's Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearance and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services. This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth management solutions. The company was founded in 1962 and is headquartered in Lake Success, New York.

How the Company Makes Money

Broadridge Financial Solutions generates revenue primarily through a combination of recurring fee-based services and transaction-based fees. The company's key revenue streams include investor communication solutions, which involve proxy voting, shareholder record-keeping, and regulatory communications. Additionally, Broadridge provides securities processing solutions, offering trade processing and settlement services to financial institutions. The company also earns from its data and analytics products, which offer insights and solutions to optimize business strategies for its clients. Significant partnerships with banks, broker-dealers, and asset managers enhance its service offerings, contributing to its steady revenue growth.

Broadridge Financial Solutions Financial Statement Overview

Summary

Broadridge Financial Solutions demonstrates robust financial health characterized by consistent revenue growth, strong profitability margins, and efficient cash flow generation. While the company's debt level requires attention, its ability to generate cash and return on equity are commendable, positioning it well within the Information Technology Services industry.

Income Statement

Broadridge Financial Solutions shows strong revenue growth with a CAGR of approximately 10% over the past five years. The gross profit margin remains healthy at 30.42% in the TTM, indicating efficient cost management. The net profit margin also improved to 11.65%, reflecting profitability enhancement. EBIT and EBITDA margins are solid at 17.42% and 23.12% respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.44, suggesting a balanced approach to leveraging. Return on equity has improved to 33.08% in the TTM, indicating robust shareholder returns. The equity ratio stands at 28.71%, highlighting a solid equity base relative to total assets. However, the total debt level is notable, requiring careful monitoring.

Cash Flow

Broadridge exhibits strong cash flow generation with a free cash flow growth rate of 19.52% year-over-year. The operating cash flow to net income ratio is 1.51, indicating strong cash conversion efficiency. The free cash flow to net income ratio of 1.43 further reinforces the company's ability to generate cash relative to its earnings.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.51B	6.06B	5.71B	4.99B	4.53B
	Gross Profit
1.93B	1.79B	1.59B	1.42B	1.26B
	EBIT
1.02B	936.40M	759.90M	678.70M	624.90M
	EBITDA
1.51B	1.36B	1.22B	1.01B	924.20M
	Net Income Common Stockholders
698.10M	630.60M	539.10M	547.50M	462.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
305.20M	252.30M	224.70M	274.50M	476.60M
	Total Assets
8.24B	8.23B	8.17B	8.12B	4.89B
	Total Debt
3.58B	3.41B	3.84B	3.89B	1.79B
	Net Debt
3.27B	3.16B	3.61B	3.61B	1.31B
	Total Liabilities
6.07B	5.99B	6.25B	6.31B	3.54B
	Stockholders Equity
2.17B	2.24B	1.92B	1.81B	1.35B
Cash Flow		Free Cash Flow
943.20M	748.10M	370.40M	539.40M	499.50M
	Operating Cash Flow
1.06B	823.30M	443.50M	640.10M	598.20M
	Investing Cash Flow
-148.00M	-80.40M	-110.40M	-2.65B	-441.70M
	Financing Cash Flow
-855.50M	-714.70M	-370.80M	1.80B	51.20M

Broadridge Financial Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 237.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BR, the sentiment is Positive. The current price of 237 is above the 20-day moving average (MA) of 235.27, above the 50-day MA of 234.64, and above the 200-day MA of 224.50, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BR.

Broadridge Financial Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BR	78 Outperform	$27.44B	34.89	33.92%	1.46%	5.73%	13.40%
CTSH	76 Outperform	$38.27B	16.40	16.61%	1.53%	4.09%	14.05%
IT	74 Outperform	$33.36B	26.93	113.19%	―	5.99%	59.74%
JKHY	74 Outperform	$12.54B	31.06	22.49%	1.24%	5.60%	―
WIT	67 Neutral	$29.81B	19.52	16.91%	2.12%	-2.83%	106.18%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%
FIS	58 Neutral	$39.90B	48.99	5.25%	1.90%	-9.12%	―

Broadridge Financial Solutions Corporate Events

Broadridge Financial Solutions Unveils May 2025 Growth Strategy

On May 9, 2025, Broadridge Financial Solutions posted its May 2025 investor presentation online, highlighting its growth strategy and financial performance. The presentation emphasized Broadridge’s focus on recurring revenue and its objectives for fiscal years 2024 to 2026, including a 7-9% growth in recurring revenue and an 8-12% growth in adjusted EPS. The company also outlined various risks and uncertainties that could impact its performance, such as changes in laws, cybersecurity threats, and market conditions. Broadridge’s strategic positioning and consistent growth have contributed to its strong market presence and shareholder value.

Spark’s Take on BR Stock

According to Spark, TipRanks’ AI Analyst, BR is a Outperform.

Broadridge Financial Solutions displays strong financial performance with robust revenue and profit growth, complemented by positive earnings call highlights. Technical analysis suggests stable stock support, though valuation metrics indicate potential overvaluation. Despite market uncertainties, the company’s strategic positioning and high revenue retention provide confidence in its growth trajectory.

To see Spark’s full report on BR stock, click here.

Broadridge Unveils February 2025 Growth Strategy

On February 10, 2025, Broadridge Financial Solutions posted its February 2025 investor presentation online, outlining its growth strategy and financial performance. The company emphasized its unique business model and growth objectives, aiming for steady earnings and capital return, thus enhancing shareholder value. The presentation highlighted potential risks and uncertainties that could impact future results, aligning with forward-looking statements. Broadridge also discussed its focus on key performance indicators and the ongoing use of Non-GAAP financial measures to assess its financial health.