Broadridge Financial Solutions, Inc. (BR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fortinet, Inc.

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Broadridge Financial Solutions, Inc.

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Cognizant Technology Solutions Corp.

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Block, Inc.

Cloudflare, Inc.

CDW Corp.

Why is Broadridge Financial Solutions, Inc. ?

High Management Efficiency with a high ROCE of 19.36%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 1,171.3 MM
DIVIDEND PER SHARE(HY) Highest at USD 6.43
INTEREST COVERAGE RATIO(Q) Highest at 2,119.13

With ROCE of 21.70%, it has a fair valuation with a 7.46 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.74%, its profits have risen by 16.2% ; the PEG ratio of the company is 2.7

Below par performance in long term as well as near term

Along with generating -1.74% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Broadridge Financial Solutions, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Broadridge Financial Solutions, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Broadridge Financial Solutions, Inc.

-20.95%

0.80

21.87%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.26%

EBIT Growth (5y)

8.70%

EBIT to Interest (avg)

9.28

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

1.32

Sales to Capital Employed (avg)

1.14

Tax Ratio

20.94%

Dividend Payout Ratio

49.60%

Pledged Shares

Institutional Holding

93.46%

ROCE (avg)

19.36%

ROE (avg)

32.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

13.45

EV to EBIT

31.85

EV to EBITDA

22.55

EV to Capital Employed

7.14

EV to Sales

5.58

PEG Ratio

2.83

Dividend Yield

119.56%

ROCE (Latest)

22.42%

ROE (Latest)

32.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,427.2 MM

ROCE(HY)

Highest at 41.79%

DIVIDEND PER SHARE(HY)

Highest at USD 6.66

PRE-TAX PROFIT(Q)

At USD 372.6 MM has Grown at 108.04%

RAW MATERIAL COST(Y)

Fallen by 1% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 103.89 %

NET PROFIT(Q)

At USD 286.37 MM has Grown at 97.62%

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 40.32%

OPERATING PROFIT MARGIN(Q)

Lowest at 19.58 %

Here's what is working for Broadridge Financial Solutions, Inc.

Operating Cash Flow

Highest at USD 1,427.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 372.6 MM has Grown at 108.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Dividend per share

Highest at USD 6.66 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Profit

At USD 286.37 MM has Grown at 97.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 103.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 127.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Broadridge Financial Solutions, Inc.

Dividend Payout Ratio

Lowest at 40.32% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Operating Profit Margin

Lowest at 19.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales