Broadridge Financial Solutions (BR) AI Stock Analysis

• Market Cap: $20.80B
• Dividend Yield: 1.63%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.57
• 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: 1,753,949
• 30 Day Avg. Volume: 1,298,841
• 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: 1.14
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: 10.62
• Enterprise Value/Ebitda: 12.80
• 1Y Price Target: $239.80
• Price Target Upside: 35.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 9.5
• Revenue Forecast (FY): $7.35B

• Rating: 67 Neutral
• Price Target: $182.00 ▲(2.81% Upside)

The score is driven primarily by solid fundamentals (profitability and free cash flow) and a supportive earnings call with reaffirmed targets and raised EPS growth guidance. These positives are tempered by very weak technicals (downtrend and heavy negative momentum) and balance-sheet leverage, while valuation and dividend yield are moderate rather than clearly compelling.

Positive Factors

Recurring Revenue & Retention

A 9% recurring revenue increase and 98% retention create a durable, predictable revenue base that supports steady cash generation and margin visibility. High retention lowers new-sales dependency, enabling multi-year planning, cross-sell of platform services, and stable long-term client relationships that underpin steady FCF and investment capacity.

Free Cash Flow Generation

Sustained FCF growth and management’s >100% FCF conversion target signal strong earnings quality and cash conversion. Robust cash generation funds organic investment, tuck-in M&A (e.g., $126M closed), dividend returns and debt reduction, providing financial flexibility and resilience across economic cycles despite some working-capital timing variability.

Product Innovation & Tokenization Traction

Doubling tokenization volumes and launches (digital bond issuance, planned real-time repo) position the company in an emerging market infrastructure niche. Expanding product capabilities across asset classes can create new, sticky revenue streams and strengthen competitive differentiation if Broadridge converts platform scale into client adoption over the medium term.

Negative Factors

Elevated Leverage

Meaningful leverage boosts ROE but increases sensitivity to higher rates and economic shocks, constraining strategic optionality. Debt above equity limits free cash deployment flexibility for larger deals or accelerated buybacks and raises refinancing and covenant risk, making capital allocation more rate- and cycle-dependent.

Margin Volatility from Event Revenue

Event-driven revenues are lumpy and materially affect margins when annualized comparables shift. Such mix-driven swings complicate sustained margin expansion targets, create quarterly earnings volatility, and require management to offset with recurring margin improvements or cost discipline to maintain long-term operating profitability guidance.

Tokenization & Digital-Asset Model Risk

While tokenization is a growth avenue, market-model shifts (direct issuer–investor flows or new intermediaries) and protocol changes (e.g., Canton minting curve) could erode expected economics or revenue pools. Structural uncertainty increases execution risk: scale may not translate to proportionate revenue if value chains evolve away from incumbents.

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 expansion and robust free-cash-flow growth support a high-quality operating profile. The main constraints are meaningful (though improving) leverage and some cash-conversion variability, plus a modestly slower recent growth cadence.

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: 177.02
• 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 177.02 is below the 20-day moving average (MA) of 187.07, below the 50-day MA of 208.76, and below the 200-day MA of 230.97, indicating a bearish trend. The MACD of -10.53 indicates Negative momentum. The RSI at 33.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.89 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	$61.18B	19.39	32.85%	2.58%	4.62%	1.06%
LDOS	72 Outperform	$21.68B	15.40	31.05%	0.87%	6.48%	22.17%
CTSH	71 Outperform	$31.95B	14.65	15.16%	1.46%	7.44%	-4.57%
BR	67 Neutral	$20.80B	19.72	41.79%	1.63%	8.57%	35.02%
WIT	66 Neutral	$24.40B	15.81	15.82%	2.78%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IT	61 Neutral	$11.36B	16.26	86.85%	―	5.24%	-16.05%

Broadridge Financial Solutions Corporate Events

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.