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  "docSlug": "a2803989ab19",
  "documentTitle": "Broadridge Financial Solutions, Inc. (BR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-09-28 00:00:00",
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  "notes": "The slide highlights that BR's 27.9% gross margin and 0.8% capex margin are significantly lower than the FinTech peer average, yet it commands a 16.4x EV/EBITDA multiple.",
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      "kind": "callout",
      "text": "We believe the market wildly overvalues the entirety of BR by not considering that 40% of its business is tied to low/no margin distribution revenue and services such as credit statement printing. Its gross margins and capex spending (due to aggressive capitalization of costs) are vastly below financial technology peers.",
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      "text": "EV / EBITDA: 16.4x",
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      "kind": "source-note",
      "text": "Source: Bloomberg consensus and Spruce Point estimates",
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      "text": "Peer comparison table including Stock Price, Adj Ent Value, Gross/Capex/OCF/EBITDA Margins, Sales Growth, and EV/Sales/EBITDA multiples.",
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      "kind": "title",
      "text": "BR Trades At A Premium To Peers",
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      "evidence": "Direct comparison of financial metrics between target company and peer groups.",
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  "loops": [
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      "from": 65,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
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      "evidence": "The deck emphasizes the downside risk and potential consequences of not acting",
      "position": 1,
      "objective": "To highlight the cost of inaction for investors",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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