DUN & BRADSTREET HOLDINGS IN (DNB) Stock Fundamental Analysis
NYSE:DNB - New York Stock Exchange, Inc. - US26484T1060 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DNB. DNB was compared to 82 industry peers in the Professional Services industry. Both the profitability and financial health of DNB have multiple concerns. DNB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
DNB had positive earnings in the past year.
DNB had a positive operating cash flow in the past year.
In the past 5 years DNB always reported negative net income.
Each year in the past 5 years DNB had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.24%, DNB is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
With a Return On Equity value of -0.64%, DNB is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
DNB's Return On Invested Capital of 2.36% is on the low side compared to the rest of the industry. DNB is outperformed by 60.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DNB is significantly below the industry average of 12.61%.
The last Return On Invested Capital (2.36%) for DNB is above the 3 year average (1.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.64% | ||
| ROIC | 2.36% |
ROA(3y)-0.29%
ROA(5y)-0.7%
ROE(3y)-0.77%
ROE(5y)-1.85%
ROIC(3y)1.76%
ROIC(5y)1.54%
1.3 Margins
With a decent Operating Margin value of 9.59%, DNB is doing good in the industry, outperforming 71.95% of the companies in the same industry.
In the last couple of years the Operating Margin of DNB has grown nicely.
With a decent Gross Margin value of 62.31%, DNB is doing good in the industry, outperforming 75.61% of the companies in the same industry.
In the last couple of years the Gross Margin of DNB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.59% | ||
| PM (TTM) | N/A | ||
| GM | 62.31% |
OM growth 3Y4.09%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.54%
GM growth 5Y-1.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DNB is destroying value.
DNB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DNB has been increased compared to 5 years ago.
DNB has a worse debt/assets ratio than last year.
2.2 Solvency
DNB has an Altman-Z score of 0.61. This is a bad value and indicates that DNB is not financially healthy and even has some risk of bankruptcy.
DNB's Altman-Z score of 0.61 is on the low side compared to the rest of the industry. DNB is outperformed by 76.83% of its industry peers.
The Debt to FCF ratio of DNB is 16.64, which is on the high side as it means it would take DNB, 16.64 years of fcf income to pay off all of its debts.
DNB has a worse Debt to FCF ratio (16.64) than 63.41% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that DNB has dependencies on debt financing.
DNB's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. DNB is outperformed by 71.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.64 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.32
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.62 indicates that DNB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, DNB is doing worse than 90.24% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that DNB may have some problems paying its short term obligations.
The Quick ratio of DNB (0.62) is worse than 89.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for DNB have decreased by 0.00% in the last year.
Measured over the past years, DNB shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.13% on average per year.
DNB shows a small growth in Revenue. In the last year, the Revenue has grown by 2.52%.
Measured over the past years, DNB shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-3.13%
EPS 5YN/A
EPS Q2Q%5%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y3.22%
Revenue growth 5Y8.38%
Sales Q2Q%2.71%
3.2 Future
DNB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
Based on estimates for the next years, DNB will show a small growth in Revenue. The Revenue will grow by 4.60% on average per year.
EPS Next Y6.56%
EPS Next 2Y7.77%
EPS Next 3Y8.75%
EPS Next 5Y10.07%
Revenue Next Year2.55%
Revenue Next 2Y3.61%
Revenue Next 3Y4.19%
Revenue Next 5Y4.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.92 indicates a reasonable valuation of DNB.
Compared to the rest of the industry, the Price/Earnings ratio of DNB indicates a rather cheap valuation: DNB is cheaper than 90.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, DNB is valued rather cheaply.
The Price/Forward Earnings ratio is 7.76, which indicates a rather cheap valuation of DNB.
DNB's Price/Forward Earnings ratio is rather cheap when compared to the industry. DNB is cheaper than 90.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, DNB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 7.76 |
4.2 Price Multiples
DNB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DNB is cheaper than 78.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DNB indicates a somewhat cheap valuation: DNB is cheaper than 64.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.97 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y7.77%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
DNB has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
DNB's Dividend Yield is rather good when compared to the industry average which is at 2.09. DNB pays more dividend than 85.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, DNB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
DNB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DNB decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of DNB are negative and hence is the payout ratio. DNB will probably not be able to sustain this dividend level.
DP-410.85%
EPS Next 2Y7.77%
EPS Next 3Y8.75%
9.01
-0.02 (-0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.01%
Inst Owner Change-0.61%
Ins Owners4.01%
Ins Owner Change4.37%
Market Cap4.02B
Analysts72
Price Target10.27 (13.98%)
Short Float %5.94%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP-410.85%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.55%
Min EPS beat(2)-8.42%
Max EPS beat(2)3.31%
EPS beat(4)2
Avg EPS beat(4)-1.13%
Min EPS beat(4)-8.42%
Max EPS beat(4)3.31%
EPS beat(8)6
Avg EPS beat(8)0.38%
EPS beat(12)7
Avg EPS beat(12)-0.7%
EPS beat(16)11
Avg EPS beat(16)1.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.78%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-0.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.97%
Revenue beat(12)4
Avg Revenue beat(12)-1.02%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)-5.62%
PT rev (3m)-31.18%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)1.08%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 7.76 | ||
| P/S | 1.68 | ||
| P/FCF | 18.97 | ||
| P/OCF | 9.69 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.05 |
EPS(TTM)1.01
EY11.21%
EPS(NY)1.16
Fwd EY12.89%
FCF(TTM)0.47
FCFY5.27%
OCF(TTM)0.93
OCFY10.32%
SpS5.37
BVpS7.38
TBVpS-9.58
PEG (NY)1.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.64% | ||
| ROCE | 2.99% | ||
| ROIC | 2.36% | ||
| ROICexc | 2.44% | ||
| ROICexgc | N/A | ||
| OM | 9.59% | ||
| PM (TTM) | N/A | ||
| GM | 62.31% | ||
| FCFM | 8.84% |
ROA(3y)-0.29%
ROA(5y)-0.7%
ROE(3y)-0.77%
ROE(5y)-1.85%
ROIC(3y)1.76%
ROIC(5y)1.54%
ROICexc(3y)1.8%
ROICexc(5y)1.58%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.22%
ROCE(5y)1.95%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y13.17%
ROICexc growth 5YN/A
OM growth 3Y4.09%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.54%
GM growth 5Y-1.84%
F-Score5
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.64 | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 35.09% | ||
| Cap/Sales | 8.46% | ||
| Interest Coverage | 1.11 | ||
| Cash Conversion | 51.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.61 |
F-Score5
WACC7.31%
ROIC/WACC0.32
Cap/Depr(3y)36.04%
Cap/Depr(5y)31.69%
Cap/Sales(3y)9.13%
Cap/Sales(5y)8.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-3.13%
EPS 5YN/A
EPS Q2Q%5%
EPS Next Y6.56%
EPS Next 2Y7.77%
EPS Next 3Y8.75%
EPS Next 5Y10.07%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y3.22%
Revenue growth 5Y8.38%
Sales Q2Q%2.71%
Revenue Next Year2.55%
Revenue Next 2Y3.61%
Revenue Next 3Y4.19%
Revenue Next 5Y4.6%
EBIT growth 1Y42.44%
EBIT growth 3Y7.44%
EBIT growth 5YN/A
EBIT Next Year21.12%
EBIT Next 3Y10.98%
EBIT Next 5Y9.13%
FCF growth 1Y-37.26%
FCF growth 3Y-12.51%
FCF growth 5YN/A
OCF growth 1Y-25.11%
OCF growth 3Y-4.63%
OCF growth 5YN/A