One-glance verdict
Undervalued
$298.89 our estimate vs market $156.93
Wall Street consensus: $213.38 (-28.6% lower than our fair-value estimate)
47% below our estimate, below the bear case
Fundamentals snapshot
Broadridge Financial Solutions, Inc.
BR · NYQ · Technology · Information Technology Services
Current price
$156.93
52-week range
$133.83 - $238.73
Market cap
$17.72B
Balance sheet
Stretched
11.63x Adequate
Net debt $3.12B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 8.5% last year.
- Reward Returns 40.9% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.4% (peer median: 0.4%).
What this company does
Broadridge Financial Solutions, Inc.
Broadridge Financial Solutions provides the essential "plumbing" for the financial world, handling critical communications like shareholder votes and processing the complex behind-the-scenes steps of stock trades. The company earns most of its money from these necessary and repeatable services, creating a very steady stream of recurring revenue (predictable income that comes in regularly, like a subscription). Because almost every major bank and investment firm uses its systems to operate and follow regulations, Broadridge is deeply integrated into the financial market.
How the company got here
Broadridge started in 1962 as a part of ADP, a large payroll processing company. For decades, it operated as ADP's division for handling shareholder communications. In 2007, ADP decided to spin off this division, creating Broadridge Financial Solutions as a separate, publicly traded company. Since becoming independent, Broadridge has grown by acquiring other companies and expanding its services to become a major technology and infrastructure provider for the global financial industry.
What it actually does
Think of Broadridge as a company that works behind the scenes to make the financial world run smoothly. It provides the essential plumbing for banks, brokerage firms, and public companies. This includes processing trades, handling communications between companies and their shareholders (the people who own a piece of the company), and providing the technology that powers investing and corporate governance (the rules and practices that direct a company). For example, when you receive materials to vote on company matters for a stock you own, there's a good chance Broadridge was responsible for getting that information to you.
Investor Communication Solutions (ICS)
This is Broadridge's largest business, making up the majority of its revenue. This segment is all about communication between public companies and their owners (shareholders). It handles the distribution of important documents like proxy statements (materials that allow shareholders to vote on company issues) and annual reports. Banks and brokers pay Broadridge to manage this complex and highly regulated process, ensuring that millions of investors receive the information they need to make decisions.
Global Technology and Operations (GTO)
This part of the company provides the heavy-duty technology that powers the daily operations of financial firms, representing a smaller but significant portion of revenue. It offers software and services that automate the entire lifecycle of a trade, from the moment an order is placed to its final settlement. Clients like investment banks and wealth managers pay for these solutions to make their trading and investment processes more efficient and to manage things like risk and compliance (following industry rules).
What management is betting on now
Broadridge is focused on several key areas for future growth. A major priority is digitization, helping clients move away from paper-based communications to more efficient digital methods. The company is also investing heavily in new technologies like artificial intelligence (AI) and solutions for digital assets and tokenization (the process of converting real-world assets into digital tokens). The goal is to build the essential infrastructure for the future of financial markets, simplifying trading and modernizing how wealth is managed.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-133.40M
FY2025 Q2
$227.90M
FY2025 Q3
$348.90M
FY2025 Q4
$684.10M
FY2026 Q1
$27.10M
FY2026 Q2
$318.50M
FY2026 Q3
$287.50M
FY2026 Q4
$645.30M
Revenue
$2.22B
Net income
$398.00M
Diluted EPS
3.42
Operating cash flow
$677.40M
Free cash flow
$645.30M
Fetching…
Sources
Revenue
$1.95B
Net income
$276.30M
Diluted EPS
2.36
Operating cash flow
$301.10M
Free cash flow
$287.50M
Fetching…
Sources
Revenue
$1.71B
Net income
$284.60M
Diluted EPS
2.42
Operating cash flow
$324.80M
Free cash flow
$318.50M
Fetching…
Sources
Revenue
$1.59B
Net income
$165.40M
Diluted EPS
1.40
Operating cash flow
$42.30M
Free cash flow
$27.10M
Fetching…
Sources
Revenue
$2.07B
Net income
$374.20M
Diluted EPS
3.17
Operating cash flow
$699.70M
Free cash flow
$684.10M
Fetching…
Sources
Revenue
$1.81B
Net income
$243.10M
Diluted EPS
2.05
Operating cash flow
$360.40M
Free cash flow
$348.90M
Fetching…
Sources
Revenue
$1.59B
Net income
$142.40M
Diluted EPS
1.20
Operating cash flow
$236.70M
Free cash flow
$227.90M
Fetching…
Sources
Revenue
$1.42B
Net income
$79.80M
Diluted EPS
0.68
Operating cash flow
$-125.50M
Free cash flow
$-133.40M
Fetching…
Sources
Is it cheap or expensive?
Fair value $298.89 vs current price $156.93
Wall Street consensus is the average analyst price target: $213.38 (-28.6% lower than our fair-value estimate).
Our most-likely fair value is $298.89 a share — about 90.5% above today's price of $156.93, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $3.1B. Interest coverage 11.6x.
Net debt
$3.12B
Interest coverage
11.63x
Broadridge Financial Solutions, Inc.'s profit covers its interest bill about 11.6 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
BR
BASELINE
Broadridge Financial Solutions, Inc.
Total debt $3.52B Interest coverage 11.63x This is the baseline the peer rows are being compared against.
Total debt $7.78B Interest coverage 3.31x -72% vs BR Carries about 3.5x less debt cushion than BR.
Total debt $21.26B Interest coverage 4.50x -61% vs BR Carries about 2.6x less debt cushion than BR.
Total debt $1.54B Interest coverage 13.29x +14% vs BR Has roughly the same debt cushion as BR.
What you should know
The case for and against BR
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.5% last year.
-
Returns 40.9% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.4% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.78x
Forward P/E
13.56x
P/B
6.30x
P/S
2.37x
EV/EBITDA
11.61x
PEG ratio
1.75x
Profitability
How much profit each dollar creates
Gross margin
31.8%
Operating margin
24.6%
Net margin
15.0%
ROE
40.9%
ROA
9.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.24x
Current ratio
1.24x
Quick ratio
1.08x
Total debt
$3.52B
Total cash
$403.80M
Growth
How the business has been compounding
Revenue TTM
$7.48B
Revenue 5Y CAGR
7.0%
EPS TTM
9.35
EPS 5Y CAGR
21.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.35B
Free CF TTM
$1.28B
FCF margin
17.1%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
40.6%
Last ex-div date
2026-09-03