Broadridge Financial Solutions, Inc.
Broadridge Financial Solutions, Inc. Fundamental Analysis
Broadridge Financial Solutions, Inc. (BR) shows moderate financial fundamentals with a PE ratio of 19.45, profit margin of 14.86%, and ROE of 41.06%. The company generates $7.2B in annual revenue with moderate year-over-year growth of 5.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBR demonstrates superior asset utilization.
Valuation Score
ExcellentBR trades at attractive valuation levels.
Growth Score
ExcellentBR delivers strong and consistent growth momentum.
Financial Health Score
WeakBR carries high financial risk with limited liquidity.
Profitability Score
ModerateBR maintains healthy but balanced margins.
Key Financial Metrics
Is BR Expensive or Cheap?
P/E Ratio
BR trades at 19.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BR's PEG of 1.26 indicates fair valuation.
Price to Book
The market values Broadridge Financial Solutions, Inc. at 7.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.47 times EBITDA. This is generally considered low.
How Well Does BR Make Money?
Net Profit Margin
For every $100 in sales, Broadridge Financial Solutions, Inc. keeps $14.86 as profit after all expenses.
Operating Margin
Core operations generate 17.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.06 in profit for every $100 of shareholder equity.
ROA
Broadridge Financial Solutions, Inc. generates $12.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Broadridge Financial Solutions, Inc. produces operating cash flow of $1.43B, showing steady but balanced cash generation.
Free Cash Flow
Broadridge Financial Solutions, Inc. generates strong free cash flow of $1.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.63 in free cash annually.
FCF Yield
BR converts 6.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How BR Stacks Against Its Sector Peers
| Metric | BR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.45 | 35.09 | Better (Cheaper) |
| ROE | 41.06% | 1183.00% | Weak |
| Net Margin | 14.86% | -132366.00% (disorted) | Strong |
| Debt/Equity | 1.22 | 0.42 | Weak (High Leverage) |
| Current Ratio | 0.97 | 4.90 | Weak Liquidity |
| ROA | 12.35% | -324448.00% (disorted) | Strong |
BR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Broadridge Financial Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.99%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
77.79%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
91.79%
Industry Style: Growth, Innovation, High Beta
High Growth