Broadridge reported a satisfactory fiscal third quarter. Recurring fee revenue growth decelerated to 4% during the period from 7% in the fiscal second quarter. It does, however, look like the firm saw some revenue move from the third quarter to the fourth quarter of fiscal 2024, which had a negative impact on recurring fee revenue by about 1-2 percentage points in the third quarter.
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.
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.
|
Metric
|
BR
|
ENV
|
FIS
|
|---|---|---|---|
Price/Earnings (Normalized) | 27.35 | 34.35 | 18.57 |
Price/Book Value | 10.62 | 6.29 | 2.45 |
Price/Sales | 3.80 | 2.85 | 4.10 |
Price/Cash Flow | 21.28 | 17.65 | 11.05 |
|
Metric
|
BR
|
ENV
|
FIS
|
|---|---|---|---|
Quick Ratio | 1.25 | 0.81 | 1.14 |
Current Ratio | 1.39 | 1.19 | 1.52 |
Interest Coverage | 6.68 | −11.71 | −9.88 |
|
Metric
|
BR
|
ENV
|
FIS
|
|---|---|---|---|
Return on Assets (Normalized) | 10.84% | 7.56% | 5.17% |
Return on Equity (Normalized) | 41.54% | 22.37% | 12.86% |
Return on Invested Capital (Normalized) | 16.56% | 9.74% | 8.06% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
ACN
| Accenture PLC Class A | Zgwvtymqn | Rqqh | $190.9 Bil | |
IBM
| International Business Machines Corp | Rnpj | Prvdxz | $155.3 Bil | |
FI
| Fiserv Inc | Rfdjssgby | Xrpbpv | $89.9 Bil | |
INFY
| Infosys Ltd ADR | Shqnlxx | Yrrlntc | $71.6 Bil | |
FIS
| Fidelity National Information Services Inc | Bgbdgbtk | Sncpkf | $43.6 Bil | |
CTSH
| Cognizant Technology Solutions Corp Class A | Yldsymlv | Yjzbmg | $34.2 Bil | |
WIT
| Wipro Ltd ADR | Kxrtnktc | Czjkrdj | $28.8 Bil | |
GIB
| CGI Inc Class A | Pjqnnlqg | Mpwhbn | $24.2 Bil | |
JKHY
| Jack Henry & Associates Inc | Ksdtxmzqh | Mdlv | $12.3 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/5fe9ddf2-0963-4604-b5ab-86494761b179.jpg)