Broadridge Financial Solutions Llc (BR)
NYSE:BR
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Broadridge Financial Solutions
(NYSE:BR)
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Rating:72Outperform
Price Target:
$179.00
▲(11.94% Upside)
Action:UpgradedDate: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, contract-based revenue
Broadridge’s revenue base is heavily recurring and embedded in regulatory and operational workflows, producing high retention (98%) and predictable cash flows. That structural recurring mix supports multi-year revenue visibility, simplifies planning, and underpins durable margins and renewal-driven growth.
Negative Factors
Elevated financial leverage
Sustained leverage at these levels increases sensitivity to higher interest rates or earnings shocks, reducing financial flexibility. While leverage has improved from past peaks, meaningful debt amplifies downside risk, can pressure credit metrics during slower growth, and constrains large-scale opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, contract-based revenue
Broadridge’s revenue base is heavily recurring and embedded in regulatory and operational workflows, producing high retention (98%) and predictable cash flows. That structural recurring mix supports multi-year revenue visibility, simplifies planning, and underpins durable margins and renewal-driven growth.
Read all positive factors
Broadridge Financial Solutions (BR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.67B
Dividend Yield1.63%
Average Volume (3M)1.73M
Price to Earnings (P/E)22.9
Beta (1Y)0.60
Revenue Growth8.57%
EPS Growth35.02%
CountryUS
Employees14,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.59
Shares Outstanding116,748,720
10 Day Avg. Volume2,426,433
30 Day Avg. Volume1,725,239
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)10.72
Price to Sales (P/S)4.13
P/FCF Ratio26.94
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.04
Enterprise Value/Gross Profit9.73
Enterprise Value/Ebitda11.72
Forecast
1Y Price Target
$241.50Price Target Upside51.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)9.5
Revenue Forecast (FY)$7.36B
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 investor...
How the Company Makes Money
Broadridge makes money primarily by selling recurring, high-volume services and software/technology solutions that are embedded in clients’ core operational and regulatory workflows.
1) Investor Communication Solutions (ICS) revenue
- Processing ...
Broadridge Financial Solutions Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
Analyzes income from different business units, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
Data provided by:
The Fly
The FlyBroadridge Financial Solutions Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: mid-single-digit recurring revenue growth (8% CC), improved organic growth (7%), robust free cash flow ($319M H1 vs $56M prior), strengthened tokenization traction (double-digit scale in tokenized volumes), Q2 closed sales momentum (+24%), and an upgraded adjusted EPS-growth outlook (9%–12%). Offsetting items are largely timing- and mix-related headwinds: a 110 bps margin decline in Q2 driven by lower event-driven revenue, expected moderation of digital-asset-related revenue due to changes in the Canton minting curve, and some license/timing swings that create near-term quarterly volatility. Management reaffirmed full-year recurring revenue and margin guidance and increased EPS guidance, signaling confidence in recovery of margins and continued investment in strategic initiatives. Overall, positives (growth, cash flow, product traction, guidance raise) materially outweigh the transitory challenges (timing, event volatility, digital-asset moderation).Positive Updates
Recurring Revenue Growth
Recurring revenues grew 9% year-over-year (8% on a constant currency basis), including 7% organic growth, indicating broad-based demand across businesses.
Negative Updates
Quarterly Margin Contraction
Adjusted operating income margin declined 110 basis points to 15.5% year-over-year in Q2, driven primarily by a reduction in event-driven revenues versus the prior-year record quarter and the net impact of lower interest rates and higher distribution revenues (≈40 bps headwind).
Read all updates
Q2-2026 Updates
Positive
Negative
Recurring Revenue Growth
Recurring revenues grew 9% year-over-year (8% on a constant currency basis), including 7% organic growth, indicating broad-based demand across businesses.
Read all positive updates
Company Guidance
Management reaffirmed fiscal 2026 targets and tightened guidance: recurring revenue growth (constant currency) at the higher end of 5–7%, adjusted operating income margin 20–21%, adjusted EPS growth raised to 9–12% (from 8–12%), closed sales $290–$330M, and free cash flow conversion >100%. Q2 set the baseline: recurring revenue +9% reported (+8% cc, +7% organic), adjusted EPS $1.59, adjusted operating income margin 15.5% (down 110 bps), total revenue $1.7B (+8%), closed sales $57M (+24%; YTD $89M), free cash flow $319M YTD (vs $56M prior year), and event-driven revenue $91M in Q2 ($204M H1). Key operating metrics include equity position growth 17% (revenue positions +11%), fund position growth 15% in Q2 (8% H1; mid–high single digits expected for the year), revenue retention 98%, tokenization volumes $384B/day in December ($9T for the month) with $7M of digital asset revenue in Q2, digital asset holdings marked to $265M (including a $187M non‑cash gain), pipeline generation +>20%, $126M of tuck‑in M&A closed (including Acler for $70M), and $367M returned to shareholders YTD.Broadridge Financial Solutions Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
66
Positive
Cash Flow
78
Positive
| 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
Negative
159.90
Price Trends
179.53
Negative
201.31
Negative
220.57
Negative
Market Momentum
-6.46
Positive
36.07
Neutral
31.65
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 159.9 is below the 20-day moving average (MA) of 170.77, below the 50-day MA of 179.53, and below the 200-day MA of 220.57, indicating a bearish trend. The MACD of -6.46 indicates Positive momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 31.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BR.
Broadridge Financial Solutions Risk Analysis
Broadridge Financial Solutions disclosed 23 risk factors in its most recent earnings report. Broadridge Financial Solutions reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Broadridge Financial Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $58.78B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
72 Outperform | $18.67B | 22.90 | 41.06% | 1.63% | 8.57% | 35.02% | |
68 Neutral | $29.82B | 17.90 | 14.84% | 1.46% | 7.44% | -4.57% | |
68 Neutral | $20.08B | 16.69 | 31.07% | 0.87% | 6.48% | 22.17% | |
67 Neutral | $23.20B | 21.25 | 15.49% | 2.78% | -1.97% | 48.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $10.47B | 24.91 | 74.65% | ― | 5.24% | -16.05% |
* Technology Sector Average
BR
Broadridge Financial Solutions
159.90
-53.60
-25.11%
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2.25
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LDOS
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158.87
26.79
20.28%
Broadridge Financial Solutions Corporate Events
Dividends
Broadridge Declares Quarterly Cash Dividend, Signals Ongoing Stability
Positive
Mar 6, 2026
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...
Business Operations and StrategyExecutive/Board Changes
Broadridge expands board, appoints new independent directors
Positive
Feb 3, 2026
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 sam...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.