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Here's Why You Should Retain Broadridge (BR) in Portfolio Now
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Broadridge Financial Solutions, Inc. (BR - Free Report) currently benefits from strategic acquisitions and a strong business model.
Broadridge’s earnings are anticipated to register growth of 14% and 8% in 2022 and 2023, respectively.
Factors That Augur Well
Broadridge’s robust business model ensures significant recurring-fee revenues, including contributions from net new business and acquisition-related synergies. In the third quarter of fiscal 2022, recurring-fee revenues of $1 billion increased 16% year over year.
BR has a track record of consistent dividend payments. During fiscal 2021, the company paid out cash dividends of $261.7 million. Broadridge paid out $241 million and $211.2 million of dividends during fiscal 2020 and 2019, respectively.
Broadridge continues boosting internal growth with strategic acquisitions. BR consolidated Alpha Omega, which it had acquired in 2021, to its NYFIX connectivity and FIX infrastructure for better automation of buy-side and sell-side firms’ trade matching processes. Another acquisition, Advisor Stream, boosts BR’s front-to-back office wealth capabilities, strengthening its position to better assist firms that aim to tap and serve clients across digital channels.
A Key Risk
Broadridge's current ratio at the end of the March quarter was pegged at 1.27, lower than the current ratio of 1.38 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that a company may have problems meeting its short-term obligations. Shares of BR have dropped 26.6% in the year-to-date period.
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Here's Why You Should Retain Broadridge (BR) in Portfolio Now
Broadridge Financial Solutions, Inc. (BR - Free Report) currently benefits from strategic acquisitions and a strong business model.
Broadridge’s earnings are anticipated to register growth of 14% and 8% in 2022 and 2023, respectively.
Factors That Augur Well
Broadridge’s robust business model ensures significant recurring-fee revenues, including contributions from net new business and acquisition-related synergies. In the third quarter of fiscal 2022, recurring-fee revenues of $1 billion increased 16% year over year.
BR has a track record of consistent dividend payments. During fiscal 2021, the company paid out cash dividends of $261.7 million. Broadridge paid out $241 million and $211.2 million of dividends during fiscal 2020 and 2019, respectively.
Broadridge continues boosting internal growth with strategic acquisitions. BR consolidated Alpha Omega, which it had acquired in 2021, to its NYFIX connectivity and FIX infrastructure for better automation of buy-side and sell-side firms’ trade matching processes. Another acquisition, Advisor Stream, boosts BR’s front-to-back office wealth capabilities, strengthening its position to better assist firms that aim to tap and serve clients across digital channels.
A Key Risk
Broadridge's current ratio at the end of the March quarter was pegged at 1.27, lower than the current ratio of 1.38 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that a company may have problems meeting its short-term obligations. Shares of BR have dropped 26.6% in the year-to-date period.
Zacks Rank and Stocks to Consider
Broadridge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has a long-term earnings growth expectation of 19.4%.
Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.
Cross Country Healthcare sports a Zacks Rank of 1 at present. CCRN has a long-term earnings growth expectation of 6.9%.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average.
CRA International carries a Zacks Rank #2 (Buy), currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.