Broadridge Financial Solutions (BR) AI Stock Analysis

• Market Cap: $21.38B
• Dividend Yield: 1.63%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.52
• Revenue Growth: 8.57%
• EPS Growth: 35.02%
• Country: US
• Employees: 14,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Services
• EPS (TTM): 1.59
• Shares Outstanding: 116,748,720
• 10 Day Avg. Volume: 1,413,950
• 30 Day Avg. Volume: 1,559,833
• PEG Ratio: 1.62
• Price to Book (P/B): 10.72
• Price to Sales (P/S): 4.13
• P/FCF Ratio: 26.94
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: 10.64
• Enterprise Value/Ebitda: 12.82
• 1Y Price Target: $239.80
• Price Target Upside: 30.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 9.5
• Revenue Forecast (FY): $7.35B

• Rating: 72 Outperform
• Price Target: $212.00 ▲(15.77% Upside)
• Action: Upgraded Date: 03/06/26
• Date: Action: Upgraded 03/06/26

The score is primarily driven by strong underlying financial performance (improving margins and robust free cash flow) and a positive earnings-call backdrop (raised EPS growth outlook and strong cash conversion). These positives are tempered by a weaker technical trend (below key longer-term moving averages with negative MACD) and a valuation that looks reasonable but not compelling at ~22.9x earnings with a ~1.94% yield.

Positive Factors

Recurring revenue & retention

High recurring revenue growth and a 98% retention rate create predictable, durable cash flows and reduce revenue volatility. This supports long-term margin sustainability, recurring service upsells, and reliable funding for strategic investments, dividends and share repurchases.

Robust free cash flow generation

Steady and rising free cash flow underpins capital allocation flexibility — enabling tuck-in M&A, shareholder returns and debt reduction. Strong FCF trends (and management targeting >100% conversion) indicate high earnings quality and long-term ability to fund growth without overreliance on external financing.

Market position and product traction

Leadership across governance, wealth and emerging tokenization provides diversified growth channels and cross-sell opportunities across large financial-institution clients. Product wins, platform scale, and pilot issuance (e.g., digital bonds) support durable competitive advantages and long-term market share expansion.

Negative Factors

Meaningful leverage

Leverage remains material and, while improved from peak levels, heightens sensitivity to rate increases and macro shocks. It constrains flexibility for opportunistic investment and amplifies downside risk to returns if revenue or margin trends weaken, making capital structure a persistent watch item.

Event-driven revenue & margin volatility

A material portion of revenue and margin is tied to lumpy event-driven activity. Normalization to lower event volumes reduces near-term margins and increases quarter-to-quarter variability, complicating planning and creating structural earnings cyclicality despite resilient recurring streams.

Tokenization & digital-asset uncertainty

While tokenization is a strategic growth area, industry structure could evolve (direct issuer models or new intermediaries), altering economics and pricing power. Combined with expected moderation in digital-asset revenue, this raises execution and monetization risk for long-term investment in DLT initiatives.

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 generates revenue through multiple key streams, primarily focused on recurring fees for its services. The company's Revenue model is structured around the provision of technology solutions and investor communication services, which include proxy voting services, shareholder communications, and regulatory compliance. A significant portion of its revenue comes from transaction-based fees related to processing financial transactions, such as trade confirmations and account statements. Additionally, Broadridge benefits from long-term contracts and relationships with financial institutions that ensure stable revenue flow. The company also engages in partnerships with financial institutions to enhance its service offerings, which can lead to increased revenue opportunities. Furthermore, Broadridge invests in technology and innovation to expand its product offerings, thereby tapping into new markets and client segments.

Broadridge Financial Solutions Financial Statement Overview

Summary

Strong multi-year revenue and margin improvement, with robust and rising free cash flow. Offsets include meaningful leverage (debt-to-equity ~1.3) and some cash-conversion variability, plus a moderation in the most recent growth pace.

Income Statement

BR shows a solid multi-year revenue uptrend (from ~$5.0B in FY2021 to $6.9B in FY2025, and $7.18B in TTM (Trailing-Twelve-Months)). Profitability has also strengthened over time, with net margin improving from ~9–11% in earlier years to ~12.2% in FY2025 and ~13.1% in TTM, alongside higher operating profitability. The main offset is that the most recent growth rate in TTM appears modest versus prior years, suggesting a slower near-term growth cadence despite healthy margins.

Balance Sheet

Leverage remains meaningful, with debt running above equity (debt-to-equity ~1.30 in FY2025 and ~1.32 in TTM), though it has improved from higher leverage levels seen in FY2021–FY2022 (~2.0+). Equity has grown over time, supporting a stronger capital base. Returns on equity are very strong (low-30% range historically, rising to ~38% in TTM), but that strength is partly amplified by the company’s leveraged balance sheet, which increases sensitivity to downturns or higher financing costs.

Cash Flow

Cash generation is a clear positive: free cash flow has grown from ~$0.54B (FY2021) to ~$1.06B (FY2025) and ~$1.36B in TTM (Trailing-Twelve-Months), with strong recent free-cash-flow growth. Free cash flow tracks net income well (roughly ~0.90–0.95x in recent periods), indicating good earnings quality. A key watch item is that operating cash flow has not consistently covered net income (coverage below 1.0 across periods, including ~0.85x in TTM), pointing to working-capital or timing effects that can create periodic volatility.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	7.18B	6.89B	6.51B	6.06B	5.71B	4.99B
Gross Profit	2.24B	2.14B	1.93B	1.79B	1.59B	1.42B
EBITDA	1.86B	1.69B	1.51B	1.36B	1.22B	1.01B
Net Income	1.07B	839.50M	698.10M	630.60M	539.10M	547.50M
Balance Sheet
Total Assets	8.64B	8.54B	8.24B	8.23B	8.17B	8.12B
Cash, Cash Equivalents and Short-Term Investments	371.50M	561.50M	305.20M	252.30M	224.70M	274.50M
Total Debt	3.51B	3.46B	3.58B	3.65B	4.07B	4.19B
Total Liabilities	5.76B	5.89B	6.07B	5.99B	6.25B	6.31B
Stockholders Equity	2.88B	2.66B	2.17B	2.24B	1.92B	1.81B
Cash Flow
Free Cash Flow	1.36B	1.06B	943.20M	748.10M	370.40M	539.40M
Operating Cash Flow	1.43B	1.17B	1.06B	823.30M	443.50M	640.10M
Investing Cash Flow	-188.30M	-316.20M	-148.00M	-80.40M	-110.40M	-2.65B
Financing Cash Flow	-1.17B	-600.80M	-855.50M	-714.70M	-370.80M	1.80B

Broadridge Financial Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 183.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 183.12 is above the 20-day moving average (MA) of 181.32, below the 50-day MA of 197.73, and below the 200-day MA of 227.70, indicating a neutral trend. The MACD of -1.63 indicates Negative momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 39.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BR.

Broadridge Financial Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$56.15B	24.55	29.68%	2.58%	4.62%	1.06%
LDOS	73 Outperform	$21.91B	16.69	31.07%	0.87%	6.48%	22.17%
BR	72 Outperform	$21.38B	22.90	41.06%	1.63%	8.57%	35.02%
CTSH	68 Neutral	$29.86B	17.90	14.84%	1.46%	7.44%	-4.57%
WIT	67 Neutral	$22.97B	21.25	15.49%	2.78%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IT	61 Neutral	$11.30B	24.91	74.65%	―	5.24%	-16.05%

Broadridge Financial Solutions Corporate Events

Broadridge Declares Quarterly Cash Dividend, Signals Ongoing Stability

On March 6, 2026, Broadridge Financial Solutions, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.975 per share, reinforcing its ongoing capital return program to shareholders. The dividend will be paid on April 8, 2026, to stockholders of record as of the close of business on March 16, 2026, underscoring the company’s continued financial stability and commitment to delivering regular income to its investor base.

The most recent analyst rating on (BR) stock is a Hold with a $189.00 price target. To see the full list of analyst forecasts on Broadridge Financial Solutions stock, see the BR Stock Forecast page.

Broadridge expands board, appoints new independent directors

On February 2, 2026, Broadridge Financial Solutions expanded its board of directors from eight to 10 members and appointed Boston Consulting Group senior advisor Trish Mosconi and company president Christopher Perry as directors, effective the same day, bringing the proportion of independent directors to eight out of 10 and reinforcing governance with Mosconi joining the audit and compensation committees. The company also disclosed that long-serving director Brett Keller, who has been on the board since 2015 and serves on the same two committees, notified Broadridge on February 2 of his decision to resign effective April 30, 2026, a move the company said was unrelated to any disagreements and that underscores an orderly board succession process, while Perry’s appointment without additional compensation and Mosconi’s extensive financial services and technology background signal a continued strategic focus on growth, innovation and industry leadership in market infrastructure and fintech.

The most recent analyst rating on (BR) stock is a Buy with a $223.00 price target. To see the full list of analyst forecasts on Broadridge Financial Solutions stock, see the BR Stock Forecast page.