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1. Company Snapshot

1.a. Company Description

Broadridge Financial Solutions, Inc.provides investor communications and technology-driven solutions for the financial services industry.The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions.


It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; data and analytics solutions; solutions for public corporations and mutual funds; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities.The company's Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearance and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services.This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth management solutions.


The company was founded in 1962 and is headquartered in Lake Success, New York.

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1.b. Last Insights on BR

Broadridge Financial Solutions, Inc.'s recent performance was negatively impacted by insider selling activity, with Director Robert N. Duelks selling 253 shares, contributing to a new 52-week low. Additionally, institutional investors such as Welch & Forbes LLC and Envestnet Asset Management Inc. reduced their holdings by 42.4% and 5.0%, respectively. The company's Q2 earnings report also drew attention, with investors scrutinizing key metrics. Furthermore, Allianz Asset Management GmbH trimmed its holdings by 47.7%, adding to the selling pressure.

1.c. Company Highlights

2. Broadridge Financial Solutions Delivers Strong Q2 Results

Broadridge Financial Solutions, Inc. reported a robust second quarter with 8% recurring revenue growth on a constant currency basis and adjusted EPS of $1.59, beating estimates of $1.34. The company's recurring revenues grew 8% in Q2, including 6% organic growth. The adjusted operating income margin was 15.5%, a decrease of 110 basis points from Q2 2025. The company generated free cash flow of $319 million in the first six months of fiscal 2026, up from $56 million in fiscal 2025.

Publication Date: Feb -08

📋 Highlights
  • Recurring Revenue Growth:: 8% growth (6% organic), with 9% in Governance and 6% in Capital Markets driven by balanced demand and tokenization.
  • Adjusted EPS Increase:: Rose 2% to $1.59, aided by a $187M non-cash gain from digital asset holdings valued at $265M.
  • Capital Allocation:: Returned $367M to shareholders via dividends and buybacks, with $49M spent on capex and $126M on strategic acquisitions.
  • Free Cash Flow Surge:: $319M in H1 2026 (vs. $56M in 2025), reflecting strong earnings and working capital efficiency.
  • Guidance Update:: Raised adjusted EPS outlook to 9–12%, reaffirmed 5–7% recurring revenue growth, and 20–21% operating margin target.

Segment Performance

The Governance segment saw recurring revenues rise 9% on a constant currency basis, driven by sales and continued position growth. In capital markets, recurring revenues grew 6% on a constant currency basis, benefiting from balanced demand across front and back office solutions and tokenization revenues. Wealth and Investment Management revenues grew 11%, driven by 6% organic growth and a 5% contribution from the SIS acquisition.

Guidance and Outlook

Broadridge Financial Solutions, Inc. is reaffirming its 2026 guidance for recurring revenue growth, margins, and closed sales, and is raising its outlook for adjusted EPS growth to 9% to 12%. The company expects to deliver on its three-year top and bottom line objectives and is managing its investments and capital wisely to deliver for shareholders. With a current P/E Ratio of 23.01 and an ROE of 37.96%, the market is pricing in high expectations for the company's future performance.

Valuation and Future Prospects

Analysts estimate next year's revenue growth at 4.3%. Given the company's current valuation metrics, including a P/S Ratio of 3.01 and an EV/EBITDA of 14.6, it is essential to assess whether the current stock price reflects the company's growth prospects. As Timothy C. Gokey mentioned, they have $89 million in year-to-date sales, which is not uncommon for the seasonality of business, and origination has picked up in the first half of the year, driven by strategic initiatives.

3. NewsRoom

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AI-Driven Filings, Opt-In Momentum, And More Than $4B in Recoveries Reshape Global Securities Class Actions, Broadridge Report Finds

Feb -19

Source: prnewswire.com

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2 Top Bargain Stocks Ready for a Bull Run

Feb -17

Source: fool.com

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XRP Gains 2.6% As a Wave of Ripple Partnerships Are Announced

Feb -16

Source: 247wallst.com

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Caprock Group LLC Invests $1.87 Million in Broadridge Financial Solutions, Inc. $BR

Feb -14

Source: defenseworld.net

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Broadridge's Distributed Ledger Repo Platform Achieves 508% Year Over Year Growth in January

Feb -12

Source: prnewswire.com

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Nissay Asset Management Corporation Becomes First in Japan to Implement Broadridge's Mortgage-Backed Securities Trade Assignment Portal

Feb -12

Source: prnewswire.com

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Allianz Asset Management GmbH Trims Stock Holdings in Broadridge Financial Solutions, Inc. $BR

Feb -10

Source: defenseworld.net

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Broadridge Financial Solutions (NYSE:BR) Hits New 1-Year Low After Insider Selling

Feb -10

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.27%)

6. Segments

Investor Communication Solutions

Expected Growth: 10.27%

Broadridge's Investor Communication Solutions' 10.27% growth is driven by increasing demand for digitalization and regulatory compliance in the financial industry, coupled with the company's strategic acquisitions and investments in technology. Additionally, the growing need for transparency and investor engagement, as well as the shift towards paperless communication, are contributing to the segment's growth.

Global Technology and Operations

Expected Growth: 10.27%

Broadridge's Global Technology and Operations segment growth is driven by increasing demand for outsourcing and digitization in the financial industry, coupled with the company's strategic acquisitions and investments in emerging technologies such as cloud, artificial intelligence, and blockchain. Additionally, the segment benefits from the growing need for regulatory compliance and risk management solutions.

7. Detailed Products

Investor Communication Solutions

Provides solutions for corporate actions, proxy services, and investor communications to help clients navigate complex regulatory requirements

Customer Communications

Offers a range of customer communication solutions, including statement composition, document composition, and digital delivery

Capital Markets Solutions

Provides solutions for securities processing, trade processing, and fixed income processing to help clients optimize their capital markets operations

Wealth Management Solutions

Offers solutions for wealth management firms, including portfolio management, performance measurement, and reporting

Data and Analytics

Provides data and analytics solutions to help clients gain insights and make informed business decisions

8. Broadridge Financial Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Broadridge Financial Solutions, Inc. is medium due to the presence of established competitors in the financial technology industry. While there are some substitutes available, they are not significantly cheaper or more convenient, limiting the threat.

Bargaining Power Of Customers

The bargaining power of customers for Broadridge Financial Solutions, Inc. is low due to the company's strong brand reputation and the complexity of its financial technology solutions. Customers are likely to have limited bargaining power in negotiating prices or terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Broadridge Financial Solutions, Inc. is medium due to the presence of multiple suppliers in the market. While suppliers may have some bargaining power, the company's scale and reputation limit their ability to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants for Broadridge Financial Solutions, Inc. is low due to the high barriers to entry in the financial technology industry. New entrants would need significant resources and expertise to compete with established players like Broadridge.

Intensity Of Rivalry

The intensity of rivalry for Broadridge Financial Solutions, Inc. is high due to the presence of multiple competitors in the financial technology industry. The company operates in a highly competitive market, and rivals are constantly innovating and improving their offerings to gain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.37%
Debt Cost 5.00%
Equity Weight 39.63%
Equity Cost 8.88%
WACC 6.54%
Leverage 152.33%

11. Quality Control: Broadridge Financial Solutions, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Broadridge Financial Solutions

A-Score: 5.9/10

Value: 2.0

Growth: 7.0

Quality: 6.4

Yield: 4.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Cognizant

A-Score: 5.7/10

Value: 4.9

Growth: 4.7

Quality: 7.6

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
IBM

A-Score: 5.7/10

Value: 1.8

Growth: 3.0

Quality: 6.0

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
FIS

A-Score: 4.4/10

Value: 2.8

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Fiserv

A-Score: 4.3/10

Value: 7.5

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Gartner

A-Score: 4.2/10

Value: 3.5

Growth: 8.1

Quality: 8.0

Yield: 0.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

177.02$

Current Price

177.02$

Potential

-0.00%

Expected Cash-Flows