$Broadridge Financial Solutions (BR.US)$In the 2023.3.20 ana...

The US company, which was listed in 2007, mainly deals with solutions for banks, stock traders, funds, etc. The main market is in the US, and the current price is 202.31.

Revenue has continued to grow over the past 5 years, with an average growth rate of 7%. Operating profit increased sharply by 23.3% in 2023 due to an increase in gross margin and a decrease in the share of expenses. The average growth rate was 9.4%, and the average net profit growth rate was 8.1%. Interest expenses account for 14.5% of operating profit in 2023, and the interest burden is heavy. Gross margin increased from 28.2% to 29.5% in the past 5 years, and net margin fell from 11.1% to 10.4%.

In the first three quarters of 2024, revenue increased 8.1%, operating profit increased 19.4%, net profit increased 22.3%, and interest expenses accounted for 18.2% of operating profit, increasing the burden.

The balance ratio has increased from 70.9% to 72.8% in the past 5 years, and total assets and net assets have increased dramatically. Goodwill increased significantly in 2021, from $2.26 billion to $5.15 billion, indicating acquisitions, which explains the rapid increase in revenue and profit over the past 3 years. The ratio and growth rate of accounts receivable are relatively normal. Goodwill and other intangible assets are 4.769 billion yuan, which is 2.1 times the net assets of 2,267 billion yuan, long-term loans of 3.51 billion yuan, and the leverage ratio is very high. Treasury shares of 2.171 billion.

Net cash flow over the past five years has been lower than net investment, and no shareholder surplus has been generated.

Currently, the price-earnings ratio is 38.2, and the price-earnings ratio is TTM 34.6. Overall, it is not very attractive.