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Broadridge Financial Solutions Inc BR

Morningstar Rating
$205.56 +1.82 (0.89%)
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Company Report

Broadridge Earnings: Relatively Steady Quarter and Outlook

Broadridge reported an OK fiscal second quarter ahead of its seasonally strong fiscal second half. Revenue of $1.41 billion and adjusted EPS of $0.92 compare modestly favorably with the FactSet consensus estimates of $1.40 billion and $0.89, respectively. The market is reacting negatively to the firm’s results, which we attribute to healthy valuation going into the quarter and modestly lower expectations for equity position growth. Broadridge maintained its fiscal 2024 outlook for firmwide recurring revenue growth, operating margins, earnings per share, and closed sales but provided updates to more granular aspects. We will maintain our narrow moat rating and $190 fair value estimate on Broadridge’s shares.

Price vs Fair Value

BR is trading at a 8% premium.
Price
$205.56
Fair Value
$183.00
Uncertainty
Low
1-Star Price
$595.20
5-Star Price
$655.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Broadridge has a dominant market share position on delivering proxies and interims to beneficial shareholders. Direct indexing and the rise of retail investing can support position growth.

Bears

Broadridge’s fees are set by the NYSE Proxy Working Group, which is overseen by the SEC. A fee review could have a negative impact. In addition, asset managers continue to face fee pressures and may be more mindful of regulatory fees in Broadridge's mutual fund and ETF interim business.

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News

Trading Information

Previous Close Price
$203.74
Day Range
$203.23205.62
52-Week Range
$133.97207.29
Bid/Ask
$77.01 / $0.00
Market Cap
$24.21 Bil
Volume/Avg
461,048 / 594,084

Key Statistics

Price/Earnings (Normalized)
28.28
Price/Sales
3.87
Dividend Yield (Trailing)
1.48%
Dividend Yield (Forward)
1.56%
Total Yield
2.24%

Company Profile

Broadridge Financial Solutions, which was spun off from ADP in 2007, is a leading provider of investor communications and technology-driven solutions to banks, broker/dealers, asset managers, wealth managers, and corporate issuers. Broadridge is composed of two segments: investor communication solutions, or ICS, and global technology and operations, or GTO.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Mid Core
Total Number of Employees
14,700

Competitors

Valuation

Metric
BR
SSNC
FIS
Price/Earnings (Normalized)
28.2813.7314.71
Price/Book Value
11.702.472.12
Price/Sales
3.872.934.18
Price/Cash Flow
22.0412.299.18
Price/Earnings
BR
SSNC
FIS

Financial Strength

Metric
BR
SSNC
FIS
Quick Ratio
1.201.030.14
Current Ratio
1.401.070.75
Interest Coverage
6.502.791.80
Quick Ratio
BR
SSNC
FIS

Profitability

Metric
BR
SSNC
FIS
Return on Assets (Normalized)
10.61%7.08%13.19%
Return on Equity (Normalized)
42.40%19.03%33.35%
Return on Invested Capital (Normalized)
16.14%11.27%18.98%
Return on Assets
BR
SSNC
FIS
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