Sector: Industrials | Focus: Data Processing & Outsourced Services
HQ: Lake Success, New York
Financial Risks
Broadridge faces risks from changes in laws/regulations affecting clients, reliance on a few key clients, cybersecurity threats, declining market participation, key service provider failures, system failures, market/economic/geopolitical conditions, competitive pressures, personnel retention, and acquisitions/divestiture impacts. Potential losses from litigation and contingent liabilities are also noted. Fluctuations in event-driven revenue, particularly from mutual fund proxy activity, are a concern.
Financial Upside
Broadridge's recurring revenue streams are growing, with organic growth from new business and existing client expansion. Acquisitions, like AdvisorTarget, are expected to contribute to future revenue. Positive operating income and earnings per share are reported, though there were decreases compared to the prior quarter. Strong cash position and borrowing capacity are noted, suggesting sufficient liquidity for future operations and potential investments.
