Broadridge Financial Solutions (BR) AI Stock Analysis

• Market Cap: $28.74B
• Dividend Yield: 1.44%
• Average Volume (3M): 671.22K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.62
• Revenue Growth: 5.73%
• EPS Growth: 13.40%
• Country: US
• Employees: 14,000
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 3.55
• Shares Outstanding: 117,463,440
• 10 Day Avg. Volume: 1,120,659
• 30 Day Avg. Volume: 671,222
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.74
• Enterprise Value/Gross Profit: 15.57
• Enterprise Value/Ebitda: 21.25
• 1Y Price Target: $249.00
• Price Target Upside: -6.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $268.00 ▲(1.01% Upside)

Broadridge Financial Solutions' strong financial performance and a positive outlook from the earnings call are significant strengths. While technical analysis and valuation suggest caution, the company's robust recurring revenue, high retention rates, and strategic growth initiatives support a solid overall score.

Positive Factors

Financial Performance

The company's consistent margin expansion and shareholder-friendly capital allocation strategy make the shares worthy of a premium valuation.

Product Offerings

BR's continued focus on expanding its product offerings has created a positive secular tailwind to drive organic growth.

Negative Factors

Sales Performance

Modest deal slippage contributed to the (21)% y/y deceleration in closed sales, although some deals have been closed and the remainder is expected to close soon.

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 Financial Solutions generates revenue through a diversified business model with key revenue streams originating from its Investor Communication Solutions and Global Technology and Operations segments. The Investor Communication Solutions segment provides services such as proxy distribution, shareholder communications, and regulatory document delivery, earning revenue through transaction fees and recurring service charges. The Global Technology and Operations segment offers services like securities processing, wealth management platforms, and data analytics, generating income through long-term contracts, licensing, and service fees. Broadridge's earnings are bolstered by strategic partnerships with financial institutions and corporations, focusing on enhancing client engagement and operational efficiencies.

Broadridge Financial Solutions Financial Statement Overview

Summary

Broadridge Financial Solutions demonstrates robust financial health characterized by consistent revenue growth, strong profitability margins, and efficient cash flow generation. The moderate debt-to-equity ratio is a slight concern, but the overall financial metrics are strong, particularly in cash flow and return on equity.

Income Statement

Broadridge Financial Solutions shows strong revenue growth with a CAGR of approximately 10% over the past five years. The gross profit margin remains healthy at 30.42% in the TTM, indicating efficient cost management. The net profit margin also improved to 11.65%, reflecting profitability enhancement. EBIT and EBITDA margins are solid at 17.42% and 23.12% respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.44, suggesting a balanced approach to leveraging. Return on equity has improved to 33.08% in the TTM, indicating robust shareholder returns. The equity ratio stands at 28.71%, highlighting a solid equity base relative to total assets. However, the total debt level is notable, requiring careful monitoring.

Cash Flow

Broadridge exhibits strong cash flow generation with a free cash flow growth rate of 19.52% year-over-year. The operating cash flow to net income ratio is 1.51, indicating strong cash conversion efficiency. The free cash flow to net income ratio of 1.43 further reinforces the company's ability to generate cash relative to its earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.51B	6.06B	5.71B	4.99B	4.53B
Gross Profit	1.93B	1.79B	1.59B	1.42B	1.26B
EBITDA	1.51B	1.36B	1.22B	1.01B	924.20M
Net Income	698.10M	630.60M	539.10M	547.50M	462.50M
Balance Sheet
Total Assets	8.24B	8.23B	8.17B	8.12B	4.89B
Cash, Cash Equivalents and Short-Term Investments	305.20M	252.30M	224.70M	274.50M	476.60M
Total Debt	3.58B	3.65B	4.07B	4.19B	2.11B
Total Liabilities	6.07B	5.99B	6.25B	6.31B	3.54B
Stockholders Equity	2.17B	2.24B	1.92B	1.81B	1.35B
Cash Flow
Free Cash Flow	943.20M	748.10M	370.40M	539.40M	499.50M
Operating Cash Flow	1.06B	823.30M	443.50M	640.10M	598.20M
Investing Cash Flow	-148.00M	-80.40M	-110.40M	-2.65B	-441.70M
Financing Cash Flow	-855.50M	-714.70M	-370.80M	1.80B	51.20M

Broadridge Financial Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 265.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BR, the sentiment is Positive. The current price of 265.33 is above the 20-day moving average (MA) of 244.08, above the 50-day MA of 241.85, and above the 200-day MA of 233.11, indicating a bullish trend. The MACD of 3.77 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 50.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BR.

Broadridge Financial Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BR	76 Outperform	$28.74B	36.77	34.81%	1.44%	5.73%	13.40%
IT	75 Outperform	$25.29B	20.44	116.13%	―	5.99%	59.74%
CTSH	74 Outperform	$34.48B	14.33	16.69%	1.73%	6.34%	12.16%
WIT	71 Outperform	$29.17B	20.18	16.50%	3.09%	-1.95%	62.75%
JKHY	68 Neutral	$12.18B	28.47	22.49%	1.35%	6.04%	13.36%
FIS	68 Neutral	$41.17B	49.02	1.01%	1.94%	-9.12%	―
Sector *	62 Neutral	$34.76B	5.42	-10.77%	2.07%	6.42%	-8.84%

Broadridge Financial Solutions Corporate Events

Broadridge Announces Quarterly Dividend for Shareholders

On May 13, 2025, Broadridge Financial Solutions announced a quarterly cash dividend of $0.88 per share, payable on July 2, 2025, to stockholders of record as of June 13, 2025. This announcement reflects Broadridge’s ongoing commitment to returning value to its shareholders and underscores its stable financial position within the fintech industry.

The most recent analyst rating on (BR) stock is a Hold with a $224.00 price target. To see the full list of analyst forecasts on Broadridge Financial Solutions stock, see the BR Stock Forecast page.

Broadridge Financial Solutions Unveils May 2025 Growth Strategy

On May 9, 2025, Broadridge Financial Solutions posted its May 2025 investor presentation online, highlighting its growth strategy and financial performance. The presentation emphasized Broadridge’s focus on recurring revenue and its objectives for fiscal years 2024 to 2026, including a 7-9% growth in recurring revenue and an 8-12% growth in adjusted EPS. The company also outlined various risks and uncertainties that could impact its performance, such as changes in laws, cybersecurity threats, and market conditions. Broadridge’s strategic positioning and consistent growth have contributed to its strong market presence and shareholder value.