Broadridge Financial Solutions Inc (BR, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $205.75, Broadridge Financial Solutions Inc has witnessed a daily loss of 0.04%, marked against a three-month change of 15.39%. A thorough analysis, underlined by the GF Score, suggests that Broadridge Financial Solutions Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability and growth rank, but a moderate financial strength and GF Value rank, GuruFocus assigned Broadridge Financial Solutions Inc a GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding Broadridge Financial Solutions Inc's Business
Broadridge Financial Solutions Inc, with a market cap of $24.21 billion and sales of $6.21 billion, operates with an operating margin of 16.07%. Since its spin-off from ADP in 2007, Broadridge has become a leading provider of investor communications and technology-driven solutions to banks, broker/dealers, asset managers, wealth managers, and corporate issuers. The company is composed of two segments: investor communication solutions (ICS), and global technology and operations (GTO), both contributing to its diversified income streams.
Profitability Rank Breakdown
The Profitability Rank reflects Broadridge Financial Solutions Inc's impressive standing among its peers in generating profit. The company's Operating Margin has increased to 15.45% in 2023 from 14.97% in 2019, indicating an improvement in operational efficiency. Additionally, Broadridge Financial Solutions Inc's Gross Margin has also seen a consistent rise, reaching 29.46% in 2023. The Piotroski F-Score further confirms the company's solid financial situation, while a strong Predictability Rank of 4.5 stars out of five underscores its consistent operational performance.
Growth Rank Breakdown
With a high Growth Rank, Broadridge Financial Solutions Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate of 9.6% outperforms 52.95% of companies in the Software industry. Moreover, Broadridge Financial Solutions Inc has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 13.2 and a five-year rate of 10.3, highlighting the company's capability to drive growth.
Conclusion: A Strong Investment Prospect
Considering Broadridge Financial Solutions Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's ability to consistently improve its margins and sustain growth in a competitive industry sets it apart as a compelling investment opportunity. Investors looking for similar high-performing companies can explore more options using the GF Score Screen provided by GuruFocus Premium.
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.
