Broadridge Financial Solutions, Inc. (BR) stock analysis

P/E below its 5-year median

Broadridge Financial Solutions's P/E of 20.1 is below its own 5-year median of 33.8.

P/E below the industry

Broadridge Financial Solutions's P/E of 20.1 is below the Miscellaneous Business Services median of 25.8.

EV/EBITDA below its 5-year median

Broadridge Financial Solutions's EV/EBITDA of 17.3 is below its 5-year median of 24.4.

P/B above the industry

Broadridge Financial Solutions's price-to-book of 7.74 is above the Miscellaneous Business Services median of 2.48.

Trading below fair value

The share price of $192.85 is below our fair value estimate of $234.69.

Margin of safety under 20%

The price is 17.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 21.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 33.9% over the last twelve months, against a 5-year average of 15.5% a year.

Growing slower than the industry

Revenue grew 8.5% over the last twelve months; the Miscellaneous Business Services median is 9.9%.

Guidance lowered

Broadridge Financial Solutions lowered its FY’26 Closed sales outlook on Apr 30, 2026.

Gross margin improving

Gross margin was 31.8% over the last twelve months, against 31.0% a year earlier.

Return on equity over 15%

Return on equity was 40.9% over the last twelve months and averaged 33.3% over five years.

Return on capital over 10%

Return on invested capital was 18.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Broadridge Financial Solutions's return on equity of 40.9% is above the Miscellaneous Business Services median of 6.8%.

Earnings grew over 5 years

Net income grew 15.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 15.0% over the last twelve months, against a 5-year average of 11.6%.

Net margin above the industry

Broadridge Financial Solutions's net margin of 15.0% is above the Miscellaneous Business Services median of 3.8%.

High debt

Debt is 115% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 215% five years ago to 115%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 41.3% of total debt.

Interest well covered

Operating income covers interest expense 11.6 times.

Short-term assets cover short-term debts

Current assets are 1.24 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Broadridge Financial Solutions paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Broadridge Financial Solutions yields 2.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 39.4% of net income.

Covered by free cash flow

Dividends take 34.7% of free cash flow.