DONNELLEY FINANCIAL SOLUTION (DFIN) Stock Fundamental Analysis
NYSE:DFIN - New York Stock Exchange, Inc. - US25787G1004 - Common Stock - Currency: USD
DFIN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making DFIN a very profitable company, without any liquidiy or solvency issues. DFIN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DFIN was profitable.
DFIN had a positive operating cash flow in the past year.
DFIN had positive earnings in 4 of the past 5 years.
DFIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DFIN's Return On Assets of 9.39% is amongst the best of the industry. DFIN outperforms 86.92% of its industry peers.
With an excellent Return On Equity value of 19.00%, DFIN belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.03%, DFIN belongs to the top of the industry, outperforming 91.98% of the companies in the same industry.
DFIN had an Average Return On Invested Capital over the past 3 years of 18.52%. This is significantly above the industry average of 7.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 19% | ||
| ROIC | 16.03% |
ROA(3y)11.18%
ROA(5y)9.41%
ROE(3y)24.24%
ROE(5y)20.2%
ROIC(3y)18.52%
ROIC(5y)18.94%
1.3 Margins
DFIN's Profit Margin of 10.87% is in line compared to the rest of the industry. DFIN outperforms 42.19% of its industry peers.
DFIN's Profit Margin has improved in the last couple of years.
DFIN has a Operating Margin of 18.36%. This is in the lower half of the industry: DFIN underperforms 60.76% of its industry peers.
In the last couple of years the Operating Margin of DFIN has grown nicely.
DFIN has a Gross Margin of 62.45%. This is in the better half of the industry: DFIN outperforms 70.46% of its industry peers.
In the last couple of years the Gross Margin of DFIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.36% | ||
| PM (TTM) | 10.87% | ||
| GM | 62.45% |
OM growth 3Y-6.62%
OM growth 5Y12.62%
PM growth 3Y-6.99%
PM growth 5Y22.42%
GM growth 3Y1.95%
GM growth 5Y10.26%
2. Health
2.1 Basic Checks
DFIN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DFIN has less shares outstanding
DFIN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.45 indicates that DFIN is not in any danger for bankruptcy at the moment.
DFIN's Altman-Z score of 4.45 is amongst the best of the industry. DFIN outperforms 82.70% of its industry peers.
DFIN has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.76, DFIN belongs to the top of the industry, outperforming 86.50% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that DFIN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, DFIN is in the better half of the industry, outperforming 67.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.45 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.29 indicates that DFIN should not have too much problems paying its short term obligations.
DFIN has a Current ratio of 1.29. This is comparable to the rest of the industry: DFIN outperforms 57.38% of its industry peers.
DFIN has a Quick Ratio of 1.29. This is a normal value and indicates that DFIN is financially healthy and should not expect problems in meeting its short term obligations.
DFIN has a Quick ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
DFIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.44%.
Measured over the past years, DFIN shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.57% on average per year.
Looking at the last year, DFIN shows a decrease in Revenue. The Revenue has decreased by -5.93% in the last year.
Measured over the past years, DFIN shows a decrease in Revenue. The Revenue has been decreasing by -2.22% on average per year.
EPS 1Y (TTM)-7.44%
EPS 3Y-11.4%
EPS 5Y24.57%
EPS Q2Q%-10.24%
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y-7.67%
Revenue growth 5Y-2.22%
Sales Q2Q%-10.14%
3.2 Future
The Earnings Per Share is expected to grow by 13.99% on average over the next years. This is quite good.
DFIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.57% yearly.
EPS Next Y17.08%
EPS Next 2Y12.92%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year-1.71%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.13, the valuation of DFIN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as DFIN.
DFIN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.41, DFIN is valued correctly.
Based on the Price/Forward Earnings ratio, DFIN is valued a bit cheaper than the industry average as 61.60% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.91. DFIN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
DFIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DFIN is cheaper than 91.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DFIN indicates a somewhat cheap valuation: DFIN is cheaper than 67.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
DFIN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DFIN may justify a higher PE ratio.
A more expensive valuation may be justified as DFIN's earnings are expected to grow with 13.99% in the coming years.
PEG (NY)0.89
PEG (5Y)0.62
EPS Next 2Y12.92%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
DFIN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.61
+0.36 (+0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change-3.67%
Ins Owners4.69%
Ins Owner Change6.83%
Market Cap1.51B
Analysts82.22
Price Target72.08 (31.99%)
Short Float %4.37%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.9%
Min EPS beat(2)2.87%
Max EPS beat(2)74.92%
EPS beat(4)2
Avg EPS beat(4)5.18%
Min EPS beat(4)-37.67%
Max EPS beat(4)74.92%
EPS beat(8)6
Avg EPS beat(8)8.73%
EPS beat(12)8
Avg EPS beat(12)6.86%
EPS beat(16)10
Avg EPS beat(16)12.79%
Revenue beat(2)1
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-5.19%
Max Revenue beat(2)2.76%
Revenue beat(4)1
Avg Revenue beat(4)-3.72%
Min Revenue beat(4)-9.43%
Max Revenue beat(4)2.76%
Revenue beat(8)2
Avg Revenue beat(8)-3.41%
Revenue beat(12)4
Avg Revenue beat(12)-3.57%
Revenue beat(16)6
Avg Revenue beat(16)-1%
PT rev (1m)2.91%
PT rev (3m)2.91%
EPS NQ rev (1m)-23.89%
EPS NQ rev (3m)-25.54%
EPS NY rev (1m)0%
EPS NY rev (3m)10.29%
Revenue NQ rev (1m)-8.98%
Revenue NQ rev (3m)-10.62%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 12.41 | ||
| P/S | 2 | ||
| P/FCF | 13.81 | ||
| P/OCF | 8.7 | ||
| P/B | 3.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.8 |
EPS(TTM)3.61
EY6.61%
EPS(NY)4.4
Fwd EY8.06%
FCF(TTM)3.95
FCFY7.24%
OCF(TTM)6.28
OCFY11.49%
SpS27.32
BVpS15.63
TBVpS-2.58
PEG (NY)0.89
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 19% | ||
| ROCE | 20.76% | ||
| ROIC | 16.03% | ||
| ROICexc | 16.89% | ||
| ROICexgc | 82.08% | ||
| OM | 18.36% | ||
| PM (TTM) | 10.87% | ||
| GM | 62.45% | ||
| FCFM | 14.48% |
ROA(3y)11.18%
ROA(5y)9.41%
ROE(3y)24.24%
ROE(5y)20.2%
ROIC(3y)18.52%
ROIC(5y)18.94%
ROICexc(3y)19.79%
ROICexc(5y)20.52%
ROICexgc(3y)154.64%
ROICexgc(5y)150.58%
ROCE(3y)23.98%
ROCE(5y)24.52%
ROICexcg growth 3Y-2.23%
ROICexcg growth 5Y35.26%
ROICexc growth 3Y-13.41%
ROICexc growth 5Y14.81%
OM growth 3Y-6.62%
OM growth 5Y12.62%
PM growth 3Y-6.99%
PM growth 5Y22.42%
GM growth 3Y1.95%
GM growth 5Y10.26%
F-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 86.87% | ||
| Cap/Sales | 8.5% | ||
| Interest Coverage | 12.16 | ||
| Cash Conversion | 81.65% | ||
| Profit Quality | 133.13% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.45 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)99.2%
Cap/Depr(5y)92.73%
Cap/Sales(3y)7.56%
Cap/Sales(5y)6.08%
Profit Quality(3y)94.39%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.44%
EPS 3Y-11.4%
EPS 5Y24.57%
EPS Q2Q%-10.24%
EPS Next Y17.08%
EPS Next 2Y12.92%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y-7.67%
Revenue growth 5Y-2.22%
Sales Q2Q%-10.14%
Revenue Next Year-1.71%
Revenue Next 2Y1.42%
Revenue Next 3Y1.57%
Revenue Next 5YN/A
EBIT growth 1Y-10.18%
EBIT growth 3Y-13.78%
EBIT growth 5Y10.12%
EBIT Next Year37.57%
EBIT Next 3Y16.64%
EBIT Next 5YN/A
FCF growth 1Y51.6%
FCF growth 3Y-8.58%
FCF growth 5Y61.08%
OCF growth 1Y38.47%
OCF growth 3Y-1.68%
OCF growth 5Y25.71%