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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' recent performance was driven by strong Q4 earnings and revenue beats, with 6.2% revenue growth and 11% adjusted EPS growth. The company's recurring revenue growth of 7% and closed sales of $288 million also contributed to its positive performance. Additionally, the company's acquisition of Signal, a leader in digital communications, expands its digital capabilities and market expertise in the UK and Europe, further supporting its growth.

1.c. Company Highlights

2. Broadridge's Strong Q1 2026 Earnings: A Robust Start to the Year

Broadridge Financial Solutions delivered a robust financial performance in its fiscal first quarter 2026, with total revenue increasing 12% to $1.6 billion. The company's recurring revenue grew 8% on a constant currency basis, driven by a 5% organic growth rate. Adjusted operating income margin expanded by 280 basis points to 15.8%, and adjusted EPS grew 51% to $1.51, surpassing estimates of $1.19. The strong EPS growth was largely driven by event-driven revenue, which was $114 million, well above the long-term average.

Publication Date: Nov -09

📋 Highlights
  • Recurring Revenue & EPS Growth:: 8% recurring revenue growth (constant currency) and 51% adjusted EPS increase to $1.51, driven by strong event revenue.
  • Wealth Business Expansion:: 22% revenue growth in Wealth, including the SIS acquisition, with closed sales of $33M in Q1.
  • Capital Markets Momentum:: 6% revenue growth from new sales and tokenization, with trade volumes up 17% (equity/fixed income).
  • Margin Expansion:: Adjusted operating income margin surged 280 bps to 15.8%, aided by event-driven revenue and operational leverage.
  • Position Growth:: Equity positions rose 12% (managed accounts driving growth), with mid-teens total position growth expected in Q2 and low double-digits annually.

Segment Performance

The company's governance business continued to drive democratization and digitization, with revenues rising 5% driven by sales and healthy position growth. In the Capital Markets segment, revenues grew 6%, driven by new sales and higher trading volumes. The wealth business grew 22% in the quarter, paced by solid organic growth and the acquisition of SIS.

Growth Prospects and Guidance

Broadridge reaffirmed its guidance for fiscal 2026, expecting recurring revenue growth at the higher end of the 5% to 7% range, and adjusted EPS growth of 8% to 12%. The company also expects closed sales to be between $290 million and $330 million. With a strong start to the year, the company's pipeline continues to strengthen, driven by its long-term growth strategy and innovations such as tokenization.

Valuation and Outlook

Given the company's strong performance and growth prospects, its valuation metrics appear reasonable. The current P/E Ratio is 31.01, and the P/S Ratio is 3.77. The ROE is 35.45%, indicating a strong return on equity. Analysts estimate next year's revenue growth at 5.5%, which is slightly below this year's growth rate. As the company continues to drive innovation and growth, its stock may be poised for further gains. As Timothy Gokey mentioned, "tokenization is one of the many innovations we are driving that are transforming our industry and setting the stage for long-term growth."

3. NewsRoom

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Broadridge Financial Solutions, Inc. $BR Position Increased by Groupe la Francaise

Dec -04

Source: defenseworld.net

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Broadridge's Distributed Ledger Repo Platform Processes $368 Billion in Average Daily Trade Volumes in November

Dec -04

Source: prnewswire.com

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Broadridge Named a Leader in Wealth Management Technology in IDC MarketScape 2025 Assessment

Dec -02

Source: prnewswire.com

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Bell Asset Management Ltd Reduces Stock Position in Broadridge Financial Solutions, Inc. $BR

Nov -27

Source: defenseworld.net

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AlphaCore Capital LLC Takes $218,000 Position in Broadridge Financial Solutions, Inc. $BR

Nov -26

Source: defenseworld.net

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Bahl & Gaynor Inc. Increases Holdings in Broadridge Financial Solutions, Inc. $BR

Nov -22

Source: defenseworld.net

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AI, Product Innovation, and Next-Generation Investors Set the Course for the Future of Asset and Wealth Management, MMI-Broadridge Survey Finds

Nov -21

Source: prnewswire.com

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Broadridge and Xceptor Partner to Transform Global Tax Reclaims and Asset Servicing Operations

Nov -19

Source: prnewswire.com

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
IBM

A-Score: 5.5/10

Value: 1.5

Growth: 3.0

Quality: 6.3

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Cognizant

A-Score: 5.5/10

Value: 5.5

Growth: 4.8

Quality: 7.5

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Gartner

A-Score: 4.3/10

Value: 4.1

Growth: 8.1

Quality: 7.7

Yield: 0.0

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
FIS

A-Score: 4.3/10

Value: 2.7

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Fiserv

A-Score: 4.2/10

Value: 6.6

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

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

232.02$

Current Price

232.02$

Potential

-0.00%

Expected Cash-Flows