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Broadridge Financial Solutions Llc (BR)
NYSE:BR
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Broadridge Financial Solutions
(NYSE:BR)
Rating:78Outperform
Price Target:
$271.00
▲(12.92%Upside)
Positive Factors
Client Investment Positions
A steady increase in investment positions by clients has created a positive secular tailwind.
Product Expansion
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 (BR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.19B
Dividend Yield1.45%
Average Volume (3M)528.55K
Price to Earnings (P/E)36.1
Beta (1Y)0.62
Revenue Growth5.73%
EPS Growth13.40%
CountryUS
Employees14,000
SectorTechnology
Sector Strength77
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.44
Shares Outstanding117,463,440
10 Day Avg. Volume504,429
30 Day Avg. Volume528,548
Financial Highlights & Ratios
PEG Ratio8.63
Price to Book (P/B)11.49
Price to Sales (P/S)0.00
P/FCF Ratio24.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$254.80Price Target Upside6.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Broadridge Financial Solutions Business Overview & Revenue Model
Company DescriptionBroadridge Financial Solutions (BR) is a leading provider of technology-driven solutions for the financial services industry. It operates in two main sectors: Investor Communication Solutions and Global Technology and Operations. The company offers a range of services, including data and analytics, communication solutions, and trade processing services, designed to enhance operational efficiency and compliance for financial institutions.
How the Company Makes MoneyBroadridge 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 Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q3-2025)
| % Change Since: -0.99%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
Broadridge reported strong financial results for the third quarter, with robust revenue and EPS growth despite market uncertainties. The company maintains high revenue retention and a significant backlog, indicating strong future growth prospects. However, some challenges such as the elongation of the sales process and FX impact on revenue were noted. Overall, the positive elements outweigh the concerns.Q3-2025 Updates
Positive Updates
Strong Third Quarter Performance
Broadridge delivered 8% recurring revenue growth and 9% adjusted EPS growth for the third quarter of fiscal 2025.
High Revenue Retention and Backlog
Broadridge achieved a 98% revenue retention rate with a $450 million revenue backlog, providing strong visibility into future growth.
Governance Business Growth
Governance recurring revenues rose 6%, driven by new sales and continued growth in investor participation, with equity position growth reaching 15%.
Capital Markets Segment Success
Reported 10% recurring revenue growth in Capital Markets, driven by strong trading volumes and demand for global post-trade solutions.
Wealth and Investment Management Expansion
Revenues grew 13% in the Wealth and Investment Management segment, supported by the acquisition of SIS and successful platform integrations.
Positive Outlook for Fiscal 2025
Broadridge remains on track to achieve 6% to 8% recurring revenue growth and adjusted EPS growth in the middle of the 8% to 12% guidance range for fiscal 2025.
Negative Updates
Elongation in Sales Process
Market uncertainty is causing delays in the closing process for some deals, impacting short-term sales guidance.
License Revenue Timing Impact
Movement of a significant wealth management license renewal into the fourth quarter created a 5-point headwind to organic revenue growth in the Wealth and Investment Management segment.
FX Impact on Reported Revenue
Changes in foreign exchange rates reduced reported recurring revenue growth by 90 basis points for the third quarter.
Company Guidance
During Broadridge's fiscal third quarter 2025 earnings call, the company reaffirmed guidance for fiscal year 2025, projecting 6% to 8% recurring revenue growth on a constant currency basis and adjusted EPS growth in the middle of the 8% to 12% range, supported by strong free cash flow. The call highlighted Broadridge's 94% recurring fee revenues, a 98% revenue retention rate, and a $450 million revenue backlog as key metrics demonstrating the company's strong visibility into future growth. Additionally, third-quarter results showed 8% recurring revenue growth and 9% adjusted EPS growth, with strong performance in both the Governance and Capital Markets segments. Despite market uncertainty, Broadridge remains confident in achieving its three-year growth objectives, driven by continued demand for digital solutions and innovation in trading and wealth management. The company also adjusted its guidance for Closed sales to a range of $240 million to $300 million, citing elongation in the closing process due to economic uncertainty, but emphasized that this would not impact fiscal 2026 results.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. While the company's debt level requires attention, its ability to generate cash and return on equity are commendable, positioning it well within the Information Technology Services industry.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.85
Very Positive
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.75
Positive
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.80
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.77B | 6.51B | 6.06B | 5.71B | 4.99B | 4.53B | Gross Profit |
| 2.06B | 1.93B | 1.79B | 1.59B | 1.42B | 1.26B | EBIT |
| 1.18B | 1.02B | 936.40M | 759.90M | 678.70M | 624.90M | EBITDA |
| 1.56B | 1.51B | 1.36B | 1.22B | 1.01B | 924.20M | Net Income Common Stockholders |
| 788.50M | 698.10M | 630.60M | 539.10M | 547.50M | 462.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 317.20M | 305.20M | 252.30M | 224.70M | 274.50M | 476.60M | Total Assets |
| 8.30B | 8.24B | 8.23B | 8.17B | 8.12B | 4.89B | Total Debt |
| 3.64B | 3.58B | 3.41B | 3.84B | 3.89B | 1.79B | Net Debt |
| 3.32B | 3.27B | 3.16B | 3.61B | 3.61B | 1.31B | Total Liabilities |
| 5.92B | 6.07B | 5.99B | 6.25B | 6.31B | 3.54B | Stockholders Equity |
| 2.38B | 2.17B | 2.24B | 1.92B | 1.81B | 1.35B |
| Cash Flow | Free Cash Flow | ||||
| 1.13B | 943.20M | 748.10M | 370.40M | 539.40M | 499.50M | Operating Cash Flow |
| 1.19B | 1.06B | 823.30M | 443.50M | 640.10M | 598.20M | Investing Cash Flow |
| -347.50M | -148.00M | -80.40M | -110.40M | -2.65B | -441.70M | Financing Cash Flow |
| -757.90M | -855.50M | -714.70M | -370.80M | 1.80B | 51.20M |
Broadridge Financial Solutions Technical Analysis
Positive
239.99
Price Trends
235.74
Positive
234.94
Positive
226.13
Positive
Market Momentum
1.26
Negative
54.47
Neutral
45.84
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 239.99 is above the 20-day moving average (MA) of 237.54, above the 50-day MA of 235.74, and above the 200-day MA of 226.13, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 45.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BR.
Broadridge Financial Solutions Risk Analysis
Broadridge Financial Solutions disclosed 22 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $34.24B | 27.67 | 113.19% | ― | 5.99% | 59.74% | |
78 Outperform | $28.19B | 36.07 | 33.92% | 1.45% | 5.73% | 13.40% | |
76 Outperform | $39.75B | 16.98 | 16.61% | 1.53% | 4.09% | 14.05% | |
74 Outperform | $13.44B | 31.42 | 22.49% | 1.23% | 6.04% | 13.36% | |
71 Outperform | $42.01B | 50.02 | 5.25% | 1.89% | -9.12% | ― | |
67 Neutral | $30.42B | 19.52 | 16.62% | 2.15% | -2.83% | 106.18% | |
61 Neutral | $11.29B | 10.17 | -6.88% | 2.97% | 7.41% | -8.93% |
* Technology Sector Average
Performance Comparison
BR
Broadridge Financial Solutions
239.99
46.86
24.26%
CTSH
Cognizant
80.64
14.78
22.44%
FIS
Fidelity National Info
79.96
6.24
8.46%
IT
Gartner
444.86
10.16
2.34%
JKHY
Jack Henry & Associates
184.59
23.57
14.64%
WIT
Wipro
2.90
0.26
9.85%
Broadridge Financial Solutions Corporate Events
Dividends
Broadridge Announces Quarterly Dividend for Shareholders
Positive
May 13, 2025
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.
Business Operations and StrategyFinancial Disclosures
Broadridge Financial Solutions Unveils May 2025 Growth Strategy
Positive
May 9, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.