Broadridge Financial SolutionsFRA:5B9 +3.80%81 Gross Margin % is 32.09% as of Mar. 2026, which is 13% above its 10-year median of 28.35. GuruFocus rates FRA:5B9 with a GF Score™ of 81/100 and a GF Value™ of €211.67 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,681 Software companies, Broadridge Financial Solutions ranks worse than 61.66% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Broadridge Financial Solutions had a gross margin of 32.09% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Broadridge Financial Solutions Gross Margin % Related Terms
Broadridge Financial Solutions Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:5B9 vs CDW, CTSH, LDOS: Gross Margin % Comparison
For the Information Technology Services subindustry, Broadridge Financial Solutions's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Broadridge Financial Solutions Gross Margin % vs Software Industry
For the Software industry and Technology sector, Broadridge Financial Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Broadridge Financial Solutions's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Broadridge Financial Solutions (FRA:5B9) has a Gross Margin % of 32.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Broadridge Financial Solutions and its competitors. This is 13% above median its historical median of 28.35. Over the past decade, Broadridge Financial Solutions' Gross Margin % has ranged from 24.98 to 31.79. According to the industry distribution chart, Broadridge Financial Solutions ranks #1653 out of 2681 companies in the Software industry, placing it in the top 61.7%.
Is Broadridge Financial Solutions' Gross Margin % too high?
Broadridge Financial Solutions' current Gross Margin % of 32.09% is 13% above median its 10-year median of 28.35. Over the past 10 years, this metric has ranged from a low of 24.98 to a high of 31.79. The Software industry median Gross Margin % is 40.41. Broadridge Financial Solutions' value of 32.09% is 20.6% below this industry median. Based on the distribution chart, Broadridge Financial Solutions ranks #1653 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Broadridge Financial Solutions has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Broadridge Financial Solutions' Gross Margin % compare to CDW and CTSH?
According to the Software industry distribution chart, Broadridge Financial Solutions ranks #1653 out of 2681 companies for Gross Margin %. This places Broadridge Financial Solutions in the lower half of its industry. The industry median Gross Margin % is 40.41. Broadridge Financial Solutions' value of 32.09% is 20.6% below this benchmark. Historically, Broadridge Financial Solutions' own Gross Margin % has ranged from 24.98 to 31.79 over the past decade. While the company's 10-year median is 28.35 vs. the industry median of 40.41, Broadridge Financial Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Broadridge Financial Solutions's current Gross Margin % of 32.09% is 20.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Broadridge Financial Solutions and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Broadridge Financial Solutions's current Gross Margin % is 32.09%, which is 13% above median its own 10-year median of 28.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Broadridge Financial Solutions stock overvalued right now?
Based on GuruFocus' analysis, Broadridge Financial Solutions (FRA:5B9) is currently considered Significantly Undervalued. The stock's GF Value™ is €211.67, compared to a current price of €122.90 — trading 41.9% below its estimated fair value. The current Gross Margin % is 32.09%, which is 13% above median its 10-year median of 28.35 and 20.6% below the Software industry median of 40.41. Broadridge Financial Solutions' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Broadridge Financial Solutions (FRA:5B9), the current Gross Margin % is 32.09% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Broadridge Financial Solutions (FRA:5B9) Overvalued in 2026?
Based on GuruFocus' analysis, Broadridge Financial Solutions stock appears to be undervalued.
The current stock price of €122.90 is trading 41.9% below its estimated GF Value™ of €211.67.
GuruFocus considers Broadridge Financial Solutions to be Significantly Undervalued.
Key valuation signals for FRA:5B9:
Gross Margin %: 32.09% (13% above median its 10-year median of 28.35)
GF Value™: €211.67 vs. price of €122.90 (41.9% below fair value)
Industry Position: 20.6% below the Software median (#1653 of 2681)
No single metric tells the full story. See the FRA:5B9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Broadridge Financial Solutions Business Description
Broadridge Financial Solutions, which was spun off from Automatic Data Processing in 2007, is a leading provider of investor communication and technology-driven solutions to banks, broker/dealers, traditional and alternative-asset managers, wealth managers, and corporate issuers. Broadridge is composed of two operating segments: investor communication solutions and global technology and operations.
81GF Score
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