DONNELLEY FINANCIAL SOLUTION (DFIN) Stock Fundamental Analysis
NYSE:DFIN - New York Stock Exchange, Inc. - US25787G1004 - Common Stock - Currency: USD
Taking everything into account, DFIN scores 6 out of 10 in our fundamental rating. DFIN was compared to 233 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 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.
In the past year DFIN had a positive cash flow from operations.
Of the past 5 years DFIN 4 years were profitable.
In the past 5 years DFIN always reported a positive cash flow from operatings.
1.2 Ratios
DFIN's Return On Assets of 10.57% is amongst the best of the industry. DFIN outperforms 88.84% of its industry peers.
Looking at the Return On Equity, with a value of 21.46%, DFIN belongs to the top of the industry, outperforming 89.27% of the companies in the same industry.
DFIN has a Return On Invested Capital of 17.70%. This is amongst the best in the industry. DFIN outperforms 93.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DFIN is significantly above the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 21.46% | ||
| ROIC | 17.7% |
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
Looking at the Profit Margin, with a value of 11.56%, DFIN is in line with its industry, outperforming 44.64% of the companies in the same industry.
In the last couple of years the Profit Margin of DFIN has grown nicely.
With a Operating Margin value of 19.32%, DFIN is not doing good in the industry: 61.37% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of DFIN has grown nicely.
Looking at the Gross Margin, with a value of 62.70%, DFIN is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
In the last couple of years the Gross Margin of DFIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.32% | ||
| PM (TTM) | 11.56% | ||
| GM | 62.7% |
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
Compared to 1 year ago, DFIN has less shares outstanding
The number of shares outstanding for DFIN has been reduced compared to 5 years ago.
Compared to 1 year ago, DFIN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.84 indicates that DFIN is not in any danger for bankruptcy at the moment.
DFIN's Altman-Z score of 4.84 is amongst the best of the industry. DFIN outperforms 84.55% of its industry peers.
The Debt to FCF ratio of DFIN is 2.04, which is a good value as it means it would take DFIN, 2.04 years of fcf income to pay off all of its debts.
DFIN's Debt to FCF ratio of 2.04 is amongst the best of the industry. DFIN outperforms 84.55% of its industry peers.
DFIN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.44, DFIN is doing good in the industry, outperforming 68.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 4.84 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.24 indicates that DFIN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.24, DFIN perfoms like the industry average, outperforming 53.22% of the companies in the same industry.
DFIN has a Quick Ratio of 1.24. This is a normal value and indicates that DFIN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.24, DFIN is in line with its industry, outperforming 53.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.59% over the past year.
DFIN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.57% yearly.
Looking at the last year, DFIN shows a decrease in Revenue. The Revenue has decreased by -2.79% 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)-2.79%
Revenue growth 3Y-7.67%
Revenue growth 5Y-2.22%
Sales Q2Q%-1.13%
3.2 Future
The Earnings Per Share is expected to grow by 13.99% on average over the next years. This is quite good.
Based on estimates for the next years, DFIN will show a small growth in Revenue. The Revenue will grow by 1.66% on average per year.
EPS Next Y17.08%
EPS Next 2Y12.92%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue Next Year-1.63%
Revenue Next 2Y1.46%
Revenue Next 3Y1.66%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DFIN is valuated correctly with a Price/Earnings ratio of 16.27.
The rest of the industry has a similar Price/Earnings ratio as DFIN.
The average S&P500 Price/Earnings ratio is at 26.98. DFIN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.98, the valuation of DFIN can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as DFIN.
The average S&P500 Price/Forward Earnings ratio is at 21.49. DFIN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DFIN is valued cheaply inside the industry as 89.27% of the companies are valued more expensively.
61.37% 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 | 18 | ||
| EV/EBITDA | 8.89 |
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)0.95
PEG (5Y)0.66
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 |
61.49
+0.47 (+0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners96.17%
Inst Owner Change-4.87%
Ins Owners4.73%
Ins Owner Change6.83%
Market Cap1.70B
Analysts82.22
Price Target70.04 (13.9%)
Short Float %5.06%
Short Ratio4.47
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)1
Avg EPS beat(2)27.75%
Min EPS beat(2)-19.42%
Max EPS beat(2)74.92%
EPS beat(4)2
Avg EPS beat(4)8.42%
Min EPS beat(4)-37.67%
Max EPS beat(4)74.92%
EPS beat(8)6
Avg EPS beat(8)12.29%
EPS beat(12)8
Avg EPS beat(12)12.42%
EPS beat(16)10
Avg EPS beat(16)15.46%
Revenue beat(2)1
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-9.43%
Max Revenue beat(2)2.76%
Revenue beat(4)1
Avg Revenue beat(4)-3.1%
Min Revenue beat(4)-9.43%
Max Revenue beat(4)2.76%
Revenue beat(8)3
Avg Revenue beat(8)-2.32%
Revenue beat(12)5
Avg Revenue beat(12)-1.68%
Revenue beat(16)7
Avg Revenue beat(16)-0.03%
PT rev (1m)0%
PT rev (3m)-3.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 13.98 | ||
| P/S | 2.18 | ||
| P/FCF | 18 | ||
| P/OCF | 10.54 | ||
| P/B | 4.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.89 |
EPS(TTM)3.78
EY6.15%
EPS(NY)4.4
Fwd EY7.15%
FCF(TTM)3.42
FCFY5.55%
OCF(TTM)5.84
OCFY9.49%
SpS28.21
BVpS15.19
TBVpS-3
PEG (NY)0.95
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 21.46% | ||
| ROCE | 22.92% | ||
| ROIC | 17.7% | ||
| ROICexc | 18.15% | ||
| ROICexgc | 84.28% | ||
| OM | 19.32% | ||
| PM (TTM) | 11.56% | ||
| GM | 62.7% | ||
| FCFM | 12.11% |
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-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.04 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 110.76% | ||
| Cap/Sales | 8.58% | ||
| Interest Coverage | 12.15 | ||
| Cash Conversion | 76.45% | ||
| Profit Quality | 104.77% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 4.84 |
F-Score6
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 Y17.08%
EPS Next 2Y12.92%
EPS Next 3Y13.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.79%
Revenue growth 3Y-7.67%
Revenue growth 5Y-2.22%
Sales Q2Q%-1.13%
Revenue Next Year-1.63%
Revenue Next 2Y1.46%
Revenue Next 3Y1.66%
Revenue Next 5YN/A
EBIT growth 1Y6.13%
EBIT growth 3Y-13.78%
EBIT growth 5Y10.12%
EBIT Next Year43.45%
EBIT Next 3Y16.95%
EBIT Next 5YN/A
FCF growth 1Y-1.67%
FCF growth 3Y-8.58%
FCF growth 5Y61.08%
OCF growth 1Y6.89%
OCF growth 3Y-1.68%
OCF growth 5Y25.71%