Broadridge Financial Solutions Inc BR

Morningstar Rating
$171.01 −1.23 (0.71%)
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Company Report

Broadridge’s Regulatory Communications Business Is the Source of Its Wide Moat

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Price vs Fair Value

BR is trading at a LOCK|Lh<R% premium.
Price
$171.01
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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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 beyond consensus expectations.

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.

News

Articles & Videos

Trading Information

Previous Close Price
$172.24
Day Range
$169.38173.37
52-Week Range
$133.83265.37
Bid/Ask
$165.00 / $176.00
Shares Outstanding
114.02M
Market Cap
$19.50B
Volume/Avg
587,630 / 1M

Key Statistics

Price/Earnings (Normalized)
17.74
Price/Sales
2.68
Dividend Yield (Trailing)
2.28%
Dividend Yield (Forward)
2.55%
Total Yield
5.38%

Company Profile

Broadridge Financial Solutions, which was spun off from Automatic Data Processing in 2007, is a leading provider of investor communication and technology-driven solutions to banks, broker/dealers, traditional and alternative-asset managers, wealth managers, and corporate issuers. Broadridge is composed of two operating segments: investor communication solutions and global technology and operations.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Mid Core
Total Number of Employees
15,000

Competitors

Valuation

Metric
BR
FIS
SSNC
Price/Earnings (Normalized)
17.747.1212.15
Price/Book Value
6.871.382.88
Price/Sales
2.681.833.09
Price/Cash Flow
12.806.1810.31
Price/Earnings
BR
FIS
SSNC

Financial Strength

Metric
BR
FIS
SSNC
Quick Ratio
1.080.421.02
Current Ratio
1.240.531.06
Interest Coverage
13.833.233.48
Quick Ratio
BR
FIS
SSNC

Profitability

Metric
BR
FIS
SSNC
Return on Assets (Normalized)
13.01%8.35%8.31%
Return on Equity (Normalized)
40.65%21.17%24.30%
Return on Invested Capital (Normalized)
19.35%11.43%14.03%
Return on Assets
BR
FIS
SSNC

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