DONNELLEY FINANCIAL SOLUTION (DFIN) Stock Fundamental Analysis
NYSE:DFIN - New York Stock Exchange, Inc. - US25787G1004 - Common Stock - Currency: USD
Overall DFIN gets a fundamental rating of 6 out of 10. We evaluated DFIN against 231 industry peers in the Capital Markets industry. DFIN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DFIN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DFIN had positive earnings in the past year.
In the past year DFIN had a positive cash flow from operations.
DFIN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DFIN had a positive operating cash flow.
1.2 Ratios
DFIN's Return On Assets of 10.98% is amongst the best of the industry. DFIN outperforms 90.48% of its industry peers.
DFIN's Return On Equity of 21.19% is amongst the best of the industry. DFIN outperforms 90.04% of its industry peers.
DFIN's Return On Invested Capital of 18.55% is amongst the best of the industry. DFIN outperforms 95.24% of its industry peers.
DFIN had an Average Return On Invested Capital over the past 3 years of 18.52%. This is significantly above the industry average of 7.10%.
The 3 year average ROIC (18.52%) for DFIN is below the current ROIC(18.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.98% | ||
| ROE | 21.19% | ||
| ROIC | 18.55% |
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 has a Profit Margin (11.82%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DFIN has grown nicely.
DFIN has a Operating Margin (18.97%) which is in line with its industry peers.
DFIN's Operating Margin has improved in the last couple of years.
DFIN has a better Gross Margin (61.90%) than 69.26% of its industry peers.
DFIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.97% | ||
| PM (TTM) | 11.82% | ||
| GM | 61.9% |
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
The number of shares outstanding for DFIN has been reduced compared to 1 year ago.
DFIN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DFIN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.61 indicates that DFIN is not in any danger for bankruptcy at the moment.
DFIN's Altman-Z score of 4.61 is amongst the best of the industry. DFIN outperforms 86.15% of its industry peers.
The Debt to FCF ratio of DFIN is 1.21, which is an excellent value as it means it would take DFIN, only 1.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.21, DFIN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that DFIN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, DFIN is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 4.61 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.04 indicates that DFIN should not have too much problems paying its short term obligations.
The Current ratio of DFIN (1.04) is comparable to the rest of the industry.
DFIN has a Quick Ratio of 1.04. This is a normal value and indicates that DFIN is financially healthy and should not expect problems in meeting its short term obligations.
DFIN's Quick ratio of 1.04 is in line compared to the rest of the industry. DFIN outperforms 49.78% of its industry peers.
DFIN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
DFIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.59%.
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 -1.92% in the last year.
DFIN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.22% yearly.
EPS 1Y (TTM)5.59%
EPS 3Y-11.4%
EPS 5Y24.57%
EPS Q2Q%36.26%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y-7.67%
Revenue growth 5Y-2.22%
Sales Q2Q%-1.13%
3.2 Future
DFIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.46% yearly.
Based on estimates for the next years, DFIN will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y6.16%
EPS Next 2Y9.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.16%
Revenue Next 2Y2.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 13.70, DFIN is valued correctly.
DFIN's Price/Earnings ratio is in line with the industry average.
DFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
The Price/Forward Earnings ratio is 12.53, which indicates a correct valuation of DFIN.
The rest of the industry has a similar Price/Forward Earnings ratio as DFIN.
When comparing the Price/Forward Earnings ratio of DFIN to the average of the S&P500 Index (20.74), we can say DFIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
DFIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DFIN is cheaper than 90.91% of the companies in the same industry.
66.23% of the companies in the same industry are more expensive than DFIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.05 | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DFIN does not grow enough to justify the current Price/Earnings ratio.
DFIN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)0.56
EPS Next 2Y9.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DFIN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.79
-0.61 (-1.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.72%
Inst Owner Change-0.91%
Ins Owners4.08%
Ins Owner Change4.54%
Market Cap1.48B
Analysts82.22
Price Target70.04 (35.24%)
Short Float %4.58%
Short Ratio3.02
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)0
Avg EPS beat(2)-28.55%
Min EPS beat(2)-37.67%
Max EPS beat(2)-19.42%
EPS beat(4)2
Avg EPS beat(4)-6.69%
Min EPS beat(4)-37.67%
Max EPS beat(4)15.83%
EPS beat(8)6
Avg EPS beat(8)5.62%
EPS beat(12)7
Avg EPS beat(12)4.92%
EPS beat(16)10
Avg EPS beat(16)15.48%
Revenue beat(2)0
Avg Revenue beat(2)-6.22%
Min Revenue beat(2)-9.43%
Max Revenue beat(2)-3%
Revenue beat(4)0
Avg Revenue beat(4)-5.39%
Min Revenue beat(4)-9.43%
Max Revenue beat(4)-2.73%
Revenue beat(8)3
Avg Revenue beat(8)-2.01%
Revenue beat(12)4
Avg Revenue beat(12)-2.4%
Revenue beat(16)7
Avg Revenue beat(16)0.56%
PT rev (1m)-3.74%
PT rev (3m)-10.43%
EPS NQ rev (1m)-5.66%
EPS NQ rev (3m)-27.1%
EPS NY rev (1m)-3.13%
EPS NY rev (3m)-11.7%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)-7.86%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.89 | ||
| P/FCF | 14.05 | ||
| P/OCF | 8.64 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.51 |
EPS(TTM)3.78
EY7.3%
EPS(NY)4.13
Fwd EY7.98%
FCF(TTM)3.69
FCFY7.12%
OCF(TTM)6
OCFY11.58%
SpS27.41
BVpS15.29
TBVpS-2.31
PEG (NY)2.22
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.98% | ||
| ROE | 21.19% | ||
| ROCE | 24.02% | ||
| ROIC | 18.55% | ||
| ROICexc | 20.44% | ||
| ROICexgc | 196.44% | ||
| OM | 18.97% | ||
| PM (TTM) | 11.82% | ||
| GM | 61.9% | ||
| FCFM | 13.45% |
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-Score8
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 109.47% | ||
| Cap/Sales | 8.43% | ||
| Interest Coverage | 11.15 | ||
| Cash Conversion | 82.06% | ||
| Profit Quality | 113.85% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.61 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)111.84%
Cap/Depr(5y)100.32%
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)5.59%
EPS 3Y-11.4%
EPS 5Y24.57%
EPS Q2Q%36.26%
EPS Next Y6.16%
EPS Next 2Y9.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y-7.67%
Revenue growth 5Y-2.22%
Sales Q2Q%-1.13%
Revenue Next Year-0.16%
Revenue Next 2Y2.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y22.36%
EBIT growth 3Y-13.78%
EBIT growth 5Y10.12%
EBIT Next Year37.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y69.13%
FCF growth 3Y-8.58%
FCF growth 5Y61.08%
OCF growth 1Y37.98%
OCF growth 3Y-1.68%
OCF growth 5Y25.71%