Broadridge Financial Solutions Inc (BR, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $202.52 and a modest daily increase of 0.2%, the company has shown a steady growth of 2.65% over the past three months. A detailed analysis, supported by the GF Score, indicates that Broadridge Financial Solutions Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Broadridge Financial Solutions Inc boasts a GF Score of 94, highlighting its strong potential for market outperformance.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Broadridge Financial Solutions Inc's Business
Broadridge Financial Solutions, which was spun off from ADP in 2007, is a global leader in providing investor communications and technology-driven solutions to various financial institutions. With a market cap of $23.93 billion and annual sales of $6.4 billion, Broadridge operates through two main segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO). The company's operating margin stands at 16.09%, reflecting its efficient operational structure.
Profitability Rank Breakdown
Broadridge Financial Solutions Inc's Profitability Rank is impressive, standing at 9 out of 10. The company's Operating Margin has improved significantly over the past five years, with the latest figure at 15.45% in 2023. Additionally, the Gross Margin has also shown consistent growth, reaching 29.46% in 2023. These metrics underscore Broadridge's ability to convert revenue into profit efficiently.
Growth Rank Breakdown
Broadridge Financial Solutions Inc is also recognized for its robust growth, with a Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 9.6% is notably higher than 52.48% of its peers in the Software industry. This is complemented by a strong increase in EBITDA, highlighting the company's ongoing growth capabilities.
Conclusion
Considering Broadridge Financial Solutions Inc's solid financial strength, exceptional profitability, and consistent growth metrics, the GF Score effectively highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
