📊 BR Key Takeaways
Is Broadridge Financial Solutions, Inc.. (BR) a Good Investment?
Broadridge demonstrates exceptional operational performance with net income growing 20.3% YoY despite 5.9% revenue growth, reflecting strong operational leverage and execution. The company generates robust free cash flow of $633M (12% margin) with excellent profitability metrics (13.8% net margin, 25.8% ROE), though balance sheet leverage and liquidity concerns (0.94x current ratio) warrant monitoring.
Broadridge shows solid fundamental quality with mid-single-digit revenue growth translating into much faster earnings growth, indicating improving operating efficiency and favorable business mix. Profitability is healthy across gross, operating, and net margins, while free cash flow generation remains strong, though balance sheet leverage and sub-1.0 current liquidity keep the profile from being stronger.
Why Buy Broadridge Financial Solutions, Inc.. Stock? BR Key Strengths
- Exceptional net income growth (20.3% YoY) significantly outpacing revenue growth, indicating strong operational leverage and margin expansion
- Robust profitability metrics: 13.8% net margin, 25.8% ROE, and 14.3% operating margin demonstrate efficient capital deployment
- Strong free cash flow generation at $633M (12% FCF margin) with minimal capital intensity ($35M CapEx), providing flexibility for investments or shareholder returns
- Solid interest coverage of 9.1x despite elevated debt levels, indicating manageable debt service requirements
- Net income and diluted EPS are growing materially faster than revenue, suggesting improving margin quality and operating leverage
- Gross margin of 43.1%, operating margin of 12.0%, and net margin of 13.6% indicate a durable and profitable business model
- Free cash flow of $345.6M and a 10.5% FCF margin support financial flexibility and earnings quality
BR Stock Risks: Broadridge Financial Solutions, Inc.. Investment Risks
- Liquidity constraints with current ratio and quick ratio both below 1.0 (0.94x and 0.93x), potentially limiting operational flexibility
- High financial leverage with debt/equity ratio of 1.14x and $3.2B long-term debt against only $304.8M cash reserves
- Moderate revenue growth of 5.9% YoY suggests limited organic expansion, with profit growth heavily dependent on margin optimization rather than top-line scaling
- Current ratio of 0.97x and quick ratio of 0.95x leave limited short-term liquidity cushion
- Long-term debt of $3.17B and debt-to-equity of 1.10x create leverage risk if earnings weaken
- Operating cash flow of $367.1M is solid but does not leave a large buffer relative to debt load and ongoing capital needs
Key Metrics to Watch
- Operating cash flow sustainability and free cash flow conversion, critical for debt servicing and shareholder returns
- Working capital management and current ratio trends, as liquidity appears constrained
- Revenue growth acceleration, as profit growth currently driven primarily by operational leverage rather than market expansion
- Operating margin and free cash flow conversion
- Debt reduction progress and interest coverage
Broadridge Financial Solutions, Inc.. (BR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
BR Profit Margin, ROE & Profitability Analysis
BR vs Services Sector: How Broadridge Financial Solutions, Inc.. Compares
How Broadridge Financial Solutions, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Broadridge Financial Solutions, Inc.. Stock Overvalued? BR Valuation Analysis 2026
Based on fundamental analysis, Broadridge Financial Solutions, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Broadridge Financial Solutions, Inc.. Balance Sheet: BR Debt, Cash & Liquidity
BR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Broadridge Financial Solutions, Inc..'s revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.30 reflects profitable operations.
BR Revenue Growth, EPS Growth & YoY Performance
BR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.8B | $243.1M | $2.05 |
| Q2 2026 | $1.6B | $142.4M | $1.20 |
| Q1 2026 | $1.4B | $79.8M | $0.68 |
| Q3 2025 | $1.7B | $213.7M | $1.79 |
| Q2 2025 | $1.4B | $70.3M | $0.59 |
| Q1 2025 | $1.4B | $79.8M | $0.68 |
| Q3 2024 | $1.6B | $198.5M | $1.67 |
| Q2 2024 | $1.3B | $57.5M | $0.48 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Broadridge Financial Solutions, Inc.. Dividends, Buybacks & Capital Allocation
BR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Broadridge Financial Solutions, Inc.. (CIK: 0001383312)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BR
What is the AI rating for BR?
Broadridge Financial Solutions, Inc.. (BR) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BR's key strengths?
Claude: Exceptional net income growth (20.3% YoY) significantly outpacing revenue growth, indicating strong operational leverage and margin expansion. Robust profitability metrics: 13.8% net margin, 25.8% ROE, and 14.3% operating margin demonstrate efficient capital deployment. ChatGPT: Net income and diluted EPS are growing materially faster than revenue, suggesting improving margin quality and operating leverage. Gross margin of 43.1%, operating margin of 12.0%, and net margin of 13.6% indicate a durable and profitable business model.
What are the risks of investing in BR?
Claude: Liquidity constraints with current ratio and quick ratio both below 1.0 (0.94x and 0.93x), potentially limiting operational flexibility. High financial leverage with debt/equity ratio of 1.14x and $3.2B long-term debt against only $304.8M cash reserves. ChatGPT: Current ratio of 0.97x and quick ratio of 0.95x leave limited short-term liquidity cushion. Long-term debt of $3.17B and debt-to-equity of 1.10x create leverage risk if earnings weaken.
What is BR's revenue and growth?
Broadridge Financial Solutions, Inc.. reported revenue of $5.3B.
Does BR pay dividends?
Broadridge Financial Solutions, Inc.. pays dividends, with $330.7M distributed to shareholders in the trailing twelve months.
Where can I find BR SEC filings?
Official SEC filings for Broadridge Financial Solutions, Inc.. (CIK: 0001383312) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BR's EPS?
Broadridge Financial Solutions, Inc.. has a diluted EPS of $6.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Broadridge Financial Solutions, Inc.. has a BUY rating with 81% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BR stock overvalued or undervalued?
Valuation metrics for BR: ROE of 25.8% (sector avg: 16%), net margin of 13.8% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy BR stock in 2026?
Our dual AI analysis gives Broadridge Financial Solutions, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BR's free cash flow?
Broadridge Financial Solutions, Inc..'s operating cash flow is $668.2M, with capital expenditures of $35.1M. FCF margin is 12.0%.
How does BR compare to other Services stocks?
Vs Services sector averages: Net margin 13.8% (avg: 10%), ROE 25.8% (avg: 16%), current ratio 0.94 (avg: 1.5).
Why is BR's return on equity (ROE) so high?
Broadridge Financial Solutions, Inc.. has a return on equity of 25.8%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 13.8% net margin.