Broadridge Financial Solutions Inc.
Find Ratings ReportsBROADRIDGE FINANCIAL SOLUTNS's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. BROADRIDGE FINANCIAL SOLUTNS has average liquidity. Currently, the Quick Ratio is 1.20 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 15.72% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 1404.9 | 1292.9 |
EBITDA ($mil) | 203.8 | 183.4 |
EBIT ($mil) | 124.2 | 108.0 |
Net Income ($mil) | 70.3 | 57.6 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 277.7 | 280.6 |
Total Assets ($mil) | 7999.8 | 8051.3 |
Total Debt ($mil) | 3875.0 | 4361.7 |
Equity ($mil) | 2067.6 | 1786.6 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 30.41 | 29.4 |
EBITDA Margin | 14.5 | 14.18 |
Operating Margin | 8.84 | 8.35 |
Sales Turnover | 0.79 | 0.72 |
Return on Assets | 8.54 | 6.61 |
Return on Equity | 33.07 | 29.82 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 1.4 | 1.26 |
Debt/Capital | 0.65 | 0.71 |
Interest Expense | 39.9 | 36.3 |
Interest Coverage | 3.11 | 2.98 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 117.7 | 117.7 |
Div / share | 0.8 | 0.73 |
EPS | 0.59 | 0.48 |
Book value / share | 17.57 | 15.18 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 574752.0 | 516056.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 40.26 for the Professional, Scientific, and Technical Services subsector and a premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 11.37 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 13.30. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, BROADRIDGE FINANCIAL SOLUTNS proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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BR 34.80 | Peers 40.26 | BR 22.83 | Peers 33.12 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. BR is trading at a discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BR is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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BR 23.42 | Peers 25.54 | BR 0.76 | Peers 6.56 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. BR is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. BR trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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BR 11.37 | Peers 13.30 | BR 28.12 | Peers 3.25 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BR is trading at a discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. BR is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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BR 3.72 | Peers 4.53 | BR 8.36 | Peers 6.63 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BR is trading at a discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. BR has a sales growth rate that significantly exceeds its peers. |
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