BROADRIDGE FINANCIAL SOLUTIONS INC. $52 - New York symbol BR

BROADRIDGE FINANCIAL SOLUTIONS INC. $52 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 119.9 million; Market cap: $6.2 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.1%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada. If you exclude one-time items, Broadridge earned $58.8 million, or $0.47 a share, in its fiscal 2015 third quarter, which ended March 31, 2015. That’s up 6.7% from $55.1 million, or $0.44 a share, a year earlier.

The company continues to attract new customers and is doing a good job of holding on to its existing ones. Revenue gained 4.6%, to $634.2 million from $606.3 million.

Broadridge typically makes about half of its profits in its fiscal fourth quarter, which ends June 30. That’s the busiest time for processing proxies and annual reports on behalf of its clients.

The company ended the quarter with cash of $310.1 million, or $2.60 a share. Its long-term debt of $629.3 million is a low 10% of its market cap. The stock is up 26% for us over the last year and now trades at 21.1 times the $2.47 a share Broadridge should earn for all of fiscal 2015.

That seems like a high multiple, but it’s still reasonable in light of the company’s dominant market share and growth prospects. The $1.08 dividend yields 2.1%. Broadridge is a buy.

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