DONNELLEY FINANCIAL SOLUTION (DFIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DFIN - US25787G1004 - Common Stock
54.87 USD
+0.2 (+0.37%)
54.87 USD
0 (0%)
Taking everything into account, DFIN scores 6 out of 10 in our fundamental rating. DFIN was compared to 238 industry peers in the Capital Markets industry. DFIN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DFIN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- DFIN had positive earnings in the past year.
- DFIN had a positive operating cash flow in the past year.
- DFIN had positive earnings in 4 of the past 5 years.
- In the past 5 years DFIN always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of DFIN (3.98%) is better than 60.50% of its industry peers.
- DFIN's Return On Equity of 7.68% is in line compared to the rest of the industry. DFIN outperforms 49.58% of its industry peers.
- With an excellent Return On Invested Capital value of 17.73%, DFIN belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- DFIN had an Average Return On Invested Capital over the past 3 years of 18.27%. This is significantly above the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 7.68% | ||
| ROIC | 17.73% |
ROA(3y)11.18%
ROA(5y)9.41%
ROE(3y)24.24%
ROE(5y)20.2%
ROIC(3y)18.27%
ROIC(5y)18.78%
1.3 Margins
- The Profit Margin of DFIN (4.33%) is worse than 72.69% of its industry peers.
- In the last couple of years the Profit Margin of DFIN has grown nicely.
- DFIN has a Operating Margin of 19.05%. This is comparable to the rest of the industry: DFIN outperforms 44.12% of its industry peers.
- In the last couple of years the Operating Margin of DFIN has grown nicely.
- DFIN's Gross Margin of 62.69% is fine compared to the rest of the industry. DFIN outperforms 70.59% of its industry peers.
- DFIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.05% | ||
| PM (TTM) | 4.33% | ||
| GM | 62.69% |
OM growth 3Y-7.91%
OM growth 5Y11.68%
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.
- DFIN has a better debt/assets ratio than last year.
2.2 Solvency
- DFIN has an Altman-Z score of 4.71. This indicates that DFIN is financially healthy and has little risk of bankruptcy at the moment.
- DFIN has a Altman-Z score of 4.71. This is amongst the best in the industry. DFIN outperforms 83.19% of its industry peers.
- The Debt to FCF ratio of DFIN is 1.54, which is an excellent value as it means it would take DFIN, only 1.54 years of fcf income to pay off all of its debts.
- DFIN has a better Debt to FCF ratio (1.54) than 88.24% of its industry peers.
- A Debt/Equity ratio of 0.35 indicates that DFIN is not too dependend on debt financing.
- DFIN's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. DFIN outperforms 70.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 4.71 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.13 indicates that DFIN should not have too much problems paying its short term obligations.
- DFIN has a Current ratio of 1.13. This is comparable to the rest of the industry: DFIN outperforms 51.68% of its industry peers.
- A Quick Ratio of 1.13 indicates that DFIN should not have too much problems paying its short term obligations.
- DFIN has a Quick ratio of 1.13. This is comparable to the rest of the industry: DFIN outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- DFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.02%, which is quite good.
- DFIN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.57% yearly.
- DFIN shows a decrease in Revenue. In the last year, the revenue decreased by -6.40%.
- DFIN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.22% yearly.
EPS 1Y (TTM)9.02%
EPS 3Y-11.4%
EPS 5Y24.57%
EPS Q2Q%79.17%
Revenue 1Y (TTM)-6.4%
Revenue growth 3Y-7.67%
Revenue growth 5Y-2.22%
Sales Q2Q%-2.34%
3.2 Future
- The Earnings Per Share is expected to grow by 14.52% on average over the next years. This is quite good.
- The Revenue is expected to grow by 0.37% on average over the next years.
EPS Next Y18.84%
EPS Next 2Y14.37%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue Next Year-5.66%
Revenue Next 2Y-0.85%
Revenue Next 3Y0.37%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- A Price/Earnings ratio of 13.75 indicates a correct valuation of DFIN.
- DFIN's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.32. DFIN is valued slightly cheaper when compared to this.
- DFIN is valuated correctly with a Price/Forward Earnings ratio of 12.16.
- 63.87% of the companies in the same industry are more expensive than DFIN, based on the Price/Forward Earnings ratio.
- DFIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
- DFIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DFIN is cheaper than 90.76% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DFIN is valued a bit cheaper than the industry average as 72.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.39 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- DFIN has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DFIN's earnings are expected to grow with 14.52% in the coming years.
PEG (NY)0.73
PEG (5Y)0.56
EPS Next 2Y14.37%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
- No dividends for DFIN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DONNELLEY FINANCIAL SOLUTION / DFIN FAQ
What is the fundamental rating for DFIN stock?
ChartMill assigns a fundamental rating of 6 / 10 to DFIN.
Can you provide the valuation status for DONNELLEY FINANCIAL SOLUTION?
ChartMill assigns a valuation rating of 6 / 10 to DONNELLEY FINANCIAL SOLUTION (DFIN). This can be considered as Fairly Valued.
Can you provide the profitability details for DONNELLEY FINANCIAL SOLUTION?
DONNELLEY FINANCIAL SOLUTION (DFIN) has a profitability rating of 7 / 10.
How financially healthy is DONNELLEY FINANCIAL SOLUTION?
The financial health rating of DONNELLEY FINANCIAL SOLUTION (DFIN) is 7 / 10.
Can you provide the expected EPS growth for DFIN stock?
The Earnings per Share (EPS) of DONNELLEY FINANCIAL SOLUTION (DFIN) is expected to grow by 18.84% in the next year.