Broadridge Financial Solutions: Is The SIS Acquisition A Game-Changer For Long-Term Competitive Advantage? – What’s the LT Impact, Outlook, & Strategic Levers for Growth?

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Broadridge Financial Solutions delivered a steady Q1 FY25 performance, showcasing resilience despite transitional pressures. Recurring revenue grew 4% in constant currency, with Governance and Capital Markets each contributing 5% growth, offset by a 4% decline in Wealth and Investment Management due to the planned E-Trade deconversion. Adjusted EPS of $1.00 exceeded estimates by $0.03, though revenue of $1.42B missed by $60.78M, reflecting topline challenges. Management raised recurring revenue growth guidance for FY25 to 6%-8%, driven by improving organic trends and the ~$185M SIS acquisition, which expands Broadridge’s wealth management footprint in Canada and adds over 1 percentage point to recurring revenue growth. Sales momentum was strong, with a record $57M in closed deals (+21% YoY), and the $450M sales backlog provides clear visibility into future growth. Innovations like Wealth InFocus, delivering five times higher client engagement, underline Broadridge’s leadership in digital-first communications. While the E-Trade deconversion dragged Q1 recurring revenue by 170 bps, this headwind will subside in Q2. Margins contracted 90 bps due to lower event-driven revenues and reinvestments, but FY25 EPS growth guidance of 8%-12% with 50 bps core margin expansion reinforces operational discipline. Can Broadridge leverage the SIS acquisition and its digital innovation to achieve sustainable competitive advantage and long-term revenue acceleration?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

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