Fundamental Analysis
Broadridge, a global fintech leader with
$4 billion in revenue, helps clients get ahead of today’s challenges to capitalize on what’s next with communications, technology, data and analytics solutions that help transform their businesses.
https://www.broadridge.com/about/
Reasons to buy – BROADRIDGE FINANCIAL SOLUTIONS
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see BROADRIDGE FINANCIAL SOLUTIONS makes a margin of 12% on Gross Level and about 10% on Net level. This means that out of $1 that it makes $0.1 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 6% in the revenue and the net profit figures grew by 43%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see BROADRIDGE FINANCIAL SOLUTIONS makes a Return on Assets of 12.5% and Return of Equity of 38% which is pretty good.
This is a company in the Fin-Tech space and the scope of growth is very good. The revenue growth may not meet our barrier but still worth the risk.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by BROADRIDGE FINANCIAL SOLUTIONS to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
