Previous Close | $242.13 |
AI Value | $89.88 |
Upside potential | -63% |
Broadridge Financial Solutions, Inc. (BR) is a leading global provider of investor communications and technology-driven solutions for the financial services industry. The company operates in two primary segments: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO). ICS dominates the proxy and shareholder communications market in North America, processing over $9 trillion in securities transactions annually. GTO offers post-trade processing, wealth management, and regulatory reporting solutions, serving capital markets, wealth managers, and asset managers. Broadridge’s competitive advantages include its entrenched market position in proxy services, recurring revenue model (~70% of revenue is recurring), and deep integration with financial institutions’ workflows. The company processes over 6.5 billion investor communications annually, giving it unparalleled scale in financial infrastructure.
Investing $200M annually in R&D, focusing on AI-driven regulatory reporting (e.g., LTX bond trading platform), blockchain for proxy voting, and cloud-based wealth management tools. Holds 150+ patents in financial data processing.
Broadridge is a high-quality compounder with durable competitive moats in financial infrastructure. Its recurring revenue model and exposure to structural trends (ESG, digitization) justify a premium valuation (current ~25x P/E). Near-term risks include interest expense pressure and slower capital markets activity, but the company’s 18-year streak of 8%+ annual revenue growth demonstrates resilience. Suitable for long-term investors seeking defensive growth with moderate volatility.
Broadridge FY2023 10-K, Investor Day presentations (May 2024), SEC filings, IDC FinTech rankings.
Historical valuation data is not available at this time.