Broadridge Financial Solutions, Inc. (BR)
Quantitative Summary
DeterministicAt 18.1x earnings — a 72% discount to the sector average of 65.0x — BR is in the lower valuation range. Financial health metrics are strong: Piotroski 8/9, Altman Z 3.8 (above 3.0 safe zone threshold).
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedBroadridge Financial Solutions demonstrates robust fundamental quality, evidenced by a Piotroski F-Score of 8/9 and a Beneish M-Score of -2.66 that collectively signal strong financial health with minimal earnings manipulation risk. The company's return on equity of 31.6% is driven primarily by operational efficiency rather than leverage; the DuPont decomposition reveals that while an equity multiplier of 3.22x provides some amplification, the core engine consists of a healthy net margin of 12.2% and solid asset turnover of 0.81x. Although the provided ROIC figure is missing from the input data, the high profitability metrics suggest capital allocation discipline typical of mature infrastructure plays in the technology sector.
Valuation analysis reveals a significant disconnect between current pricing and intrinsic value models. Trading at an 18.1x forward P/E, Broadridge commands less than one-third of the sector average multiple of 57.8x, suggesting the market may be underweighting its cash flow generation relative to peers. This discount appears inconsistent with a DCF model that implies a fair value of $228 per share, indicating current prices are likely below intrinsic worth based on projected growth assumptions. The substantial gap between the low multiple and the implied fair value suggests the stock is not fully pricing in future earnings expansion or structural tailwinds inherent to its business model.
Recent insider activity provides additional context to this valuation dynamic, with $982,066 in net buying over the last 90 days signaling confidence from management regarding near-term prospects. While specific risk factor deltas and Fama-French alpha data were not included in the provided metrics, the combination of a low valuation multiple relative to sector peers, strong insider accumulation, and high-quality fundamental scores creates a compelling risk/reward profile for investors willing to absorb potential volatility associated with trading at such a discount to intrinsic value.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
InteractiveSensitivity Matrix
| TG ↓ / WACC → | 8% | 10% | 12% |
|---|---|---|---|
| 2% | $282 | $202 | $155 |
| 3% | $333 | $228 | $170 |
| 4% | $410 | $262 | $188 |
Center = base case. Green = >10% upside, Red = >10% downside vs —.
Pre-computed DCF: WACC=10.0%, terminal growth 3%. Fair value $228 (+0.0%). Not investment advice.
Valuation Context
Price Chart with Moving Averages
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like MOAT or VOT, the fund manager is mechanically forced to buy or sell BR shares regardless of Broadridge Financial Solutions, Inc.'s individual fundamentals. We estimate $3.2B of passive capital is structurally linked to BR through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Broadridge Financial Solutions, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If Broadridge Financial Solutions, Inc. (BR) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies CATERPILLAR INC (CAT) as the most exposed collateral stock, sharing 1 ETFs with BR. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 32 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
BR Ownership Dynamics
ETFs with Highest BR Exposure
Float lock-up computed from 33 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
BR Capital Efficiency
How efficiently does Broadridge Financial Solutions, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
Broadridge Financial Solutions, Inc. converts 69% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. The positive ROIC-WACC spread of 4.1% confirms that reinvested capital creates shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-11 | 131 | $149.50 | $19,584.5 |
| 2026-05-08 | 37,100 | $152.89 | $5.7M |
| 2026-04-20 | 116 | $162.92 | $18,898.72 |
| 2026-04-07 | 15 | $162.48 | $2,437.2 |
| 2026-03-31 | 82 | $163.44 | $13,402.08 |
| 2026-03-25 | 12 | $164.63 | $1,975.56 |
| 2026-03-23 | 10 | $174.36 | $1,743.6 |
| 2026-01-15 | 24 | $220.96 | $5,303.04 |
| 2026-01-08 | 22,690 | $219.47 | $5.0M |
| 2025-12-26 | 3 | $228.38 | $685.14 |
| 2025-12-22 | 22 | $225.96 | $4,971.12 |
| 2025-11-24 | 99 | $228.39 | $22,610.61 |
| 2025-11-10 | 16 | $221.72 | $3,547.52 |
| 2025-10-24 | 15 | $232.10 | $3,481.5 |
| 2025-10-17 | 15 | $226.38 | $3,395.7 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Compare BR to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: N/A.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.