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Broadridge Financial Solutions Inc.

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Broadridge continues to suffer from intense competition and consolidation in the U.S. financial services market. Multiple acquisitions, despite improving revenue opportunities, increase the company’s exposure to integration risks. Customer concentration is also a major risk for Broadridge. Loss of a single client due to merger or consolidation, financial difficulties or bankruptcy, or the termination or non-renewal of contracts affects the operating performance significantly. Despite such headwinds, the company outperformed its industry’s growth in the past year. Moreover, the company has a strong business model. Higher recurring revenues, internal growth, contribution from Net New Business, increased distribution revenues and buyout-related synergies have driven the company’s topline growth. We also appreciate the company’s shareholder friendly moves of share repurchases program and dividend payments.

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