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Broadridge Financial Solutions earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score58 / 100 · grade C · rank 743 of 1027

Broadridge Financial Solutions (BR) scores 58 of 100 for earnings quality, grade C: rank 743 of 1027 companies and 181 of 287 in industrials. It loses the most points on accruals of -2.5% of assets, higher than 68% of companies (profit backed by cash), Montier C-score 3 of 4 checks failed, adjusted earnings 7% below GAAP. It earns full or near-full marks for discretionary accruals of -0.7% of assets (modified Jones), smaller than most, profit steadier than cash flow (smoothness 0.61), Piotroski F-score 9 of 9.

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -2.5% of assets, higher than 68% of companies (profit backed by cash)929
Montier C-scoreMontier C-score 3 of 4 checks failed521
Discretionary accrualsdiscretionary accruals of -0.7% of assets (modified Jones), smaller than most1214
Piotroski F-scorePiotroski F-score 9 of 91414
Non-GAAP gapadjusted earnings 7% below GAAP1114
Earnings smoothnessprofit steadier than cash flow (smoothness 0.61)67
BR: share of the available points, by componentBR: share of the available points, by componentAccruals32%Discretionary accruals87%Montier C-score25%Piotroski F-score100%Non-GAAP gap76%Earnings smoothness83%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

Every company ranked → The full quality workbench, live → Broadridge Financial Solutions: cash flow →

Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.