Broadridge Financial Solutions (BR)
Industrials · $21.8B market cap · SEC CIK 0001383312
ahead of 81% of the S&P 500 · #10 of 79 in Industrials
Next reports on Feb 1, 2027, with analysts expecting $1.75 in earnings per share.
52-week range $133.83 to $233.10. 17% below its 52-week high and 44% above its low.
The case for BR
- Earns 38% back on shareholder equity.
- Generated $1.3B of free cash flow in FY2026, 17% of revenue.
- Pays a modest 1.7% dividend.
The case against
- Long-term debt of $3.3B against $403M of cash.
- Trailed the S&P 500 by 25 points over the past year.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 75 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 61 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 66 |
| Momentumhow the price has behaved lately | 54 |
| Stabilityhow violently it moves, what it owes and what it pays you | 63 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +7.1% |
|---|---|
| Over 5 years | +8.4% a year |
| FY2026 revenue | $7.5B (+9%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $1.3B |
|---|---|
| Of revenue | 17% |
| Of profit | 114% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 32% |
|---|---|
| Operating margin | 17% |
| Net margin, FY25 → FY26 → now | 12.2% → 15.0% → 13.9% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $403M |
|---|---|
| Long-term debt | $3.3B |
| Net debt | $2.9B |
| Years to repay | 2.4 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 20.6× |
|---|---|
| Fair P/E for its growth | 26× |
| P/FCF | 17.0× |
| Forward P/E | 16.4× |
| EV / EBITDA | 17.4× |
At 20.6× earnings it trades below the 26× that 10% a year of growth plus a 1.7% dividend would justify. At 17.0× free cash flow it trades below that same mark.
The financials, five years deep
Pulled from Broadridge Financial Solutions's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $7.5B | $6.9B | $6.5B | $6.1B | $5.7B |
| Change on the year | +9% | +6% | +7% | +6% | — |
| Free cash flow | |||||
| Free cash flow | $1.3B | $1.1B | $999M | $785M | $415M |
| Of revenue | 17% | 16% | 15% | 13% | 7% |
| Profit margins | |||||
| Operating margin | 17.4% | 17.3% | 15.6% | 15.4% | 13.3% |
| Net margin | 15.0% | 12.2% | 10.7% | 10.4% | 9.4% |
| Debt vs. cash | |||||
| Cash | $403M | $562M | $304M | $252M | $225M |
| Long-term debt | $3.3B | $2.8B | $3.4B | $2.2B | $3.8B |
| Net cash (debt) | −$2.9B | −$2.2B | −$3.1B | −$2.0B | −$3.6B |
What Broadridge Financial Solutions says it does
The Broadridge Business Broadridge, a Delaware corporation, is a global financial technology leader powering investing, corporate governance, and communications. We deliver technology-driven solutions to banks, broker-dealers, asset and wealth managers, public companies, investors, and mutual funds, that enable our clients to operate, innovate and grow. Our trusted expertise and transformative technology solutions help financial services companies enhance investor engagement, optimize trading and investing, and digitize communications. We operate our business in two reportable segments: Investor Communication Solutions and Global Technology and Operations. Investor Communication Solutions Our Regulatory Solutions, Data-Driven Fund Solutions, Corporate Issuer Solutions, and Customer Communications Solutions are provided as part of the Investor Communication Solutions segment. The Investor Communication Solutions segment is the larger of…
Risk factors BR lists in its 10-K
- Consolidation in the financial services industry could adversely affect our revenues by eliminating some of our existing and potential clients and could make us increasingly dependent on a more limited number of clients
- If we are unable to respond to the demands of our existing and new clients, or adapt to technological changes or advances, our business and future growth could be impacted
- Our revenues may decrease due to declines in the levels of participation and activity in the securities markets
- We may be adversely impacted by a failure of third-party service providers to perform their functions
- In the event of a disaster, our disaster recovery and business continuity plans may fail, which could result in the loss of client data and adversely interrupt operations
- The inability to properly perform our services or operational errors in the performance of our services could lead to liability for claims, client loss and result in reputational damage
- If the operational systems and infrastructure that we depend on fail to keep pace with our growth, we may experience operating inefficiencies, client dissatisfaction and lost revenue opportunities
- Intense competition could negatively affect our ability to maintain or increase our business, financial condition, and results of operations
- We may be unable to attract and retain key personnel
- The inability to identify, obtain, retain, enforce and protect important intellectual property rights could harm our business
- Acquisitions and integrating such acquisitions create certain risks and may affect operating results
- Our existing and future debt levels, and compliance with our debt service obligations, could have a negative impact on our financing options and liquidity position, which could adversely affect our business
- We may incur significant charges or losses in the future associated with our portfolio of intangible assets, including goodwill and digital assets
- Certain of our services may be exposed to risk from our counterparties and third parties