DUN & BRADSTREET HOLDINGS IN (DNB) Stock Fundamental Analysis
NYSE:DNB - New York Stock Exchange, Inc. - US26484T1060 - Common Stock - Currency: USD
Taking everything into account, DNB scores 3 out of 10 in our fundamental rating. DNB was compared to 80 industry peers in the Professional Services industry. DNB may be in some trouble as it scores bad on both profitability and health. DNB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DNB was profitable.
DNB had a positive operating cash flow in the past year.
DNB had negative earnings in each of the past 5 years.
In the past 5 years DNB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DNB (-0.24%) is worse than 62.50% of its industry peers.
DNB has a worse Return On Equity (-0.64%) than 61.25% of its industry peers.
DNB has a Return On Invested Capital of 2.36%. This is in the lower half of the industry: DNB underperforms 62.50% of its industry peers.
DNB had an Average Return On Invested Capital over the past 3 years of 1.76%. This is significantly below the industry average of 12.73%.
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 70.00% of the companies in the same industry.
DNB's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 62.31%, DNB is doing good in the industry, outperforming 75.00% 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
DNB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DNB has been increased compared to 1 year ago.
Compared to 5 years ago, DNB has more shares outstanding
DNB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that DNB is in the distress zone and has some risk of bankruptcy.
DNB has a worse Altman-Z score (0.62) than 76.25% of its industry peers.
DNB has a debt to FCF ratio of 16.64. This is a negative value and a sign of low solvency as DNB would need 16.64 years to pay back of all of its debts.
DNB has a Debt to FCF ratio of 16.64. This is in the lower half of the industry: DNB underperforms 65.00% 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 has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: DNB underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.64 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.29
WACC8.13%
2.3 Liquidity
DNB has a Current Ratio of 0.62. This is a bad value and indicates that DNB is not financially healthy enough and could expect problems in meeting its short term obligations.
DNB's Current ratio of 0.62 is on the low side compared to the rest of the industry. DNB is outperformed by 91.25% of its industry peers.
DNB has a Quick Ratio of 0.62. This is a bad value and indicates that DNB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.62, DNB is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
DNB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.90%.
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.
Looking at the last year, DNB shows a small growth in Revenue. The Revenue has grown by 2.93% in the last year.
DNB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
EPS 1Y (TTM)-4.9%
EPS 3Y-3.13%
EPS 5YN/A
EPS Q2Q%-17.39%
Revenue 1Y (TTM)2.93%
Revenue growth 3Y3.22%
Revenue growth 5Y8.38%
Sales Q2Q%1.56%
3.2 Future
The Earnings Per Share is expected to grow by 10.07% on average over the next years. This is quite good.
DNB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y6.56%
EPS Next 2Y7.77%
EPS Next 3Y8.75%
EPS Next 5Y10.07%
Revenue Next Year2.47%
Revenue Next 2Y3.63%
Revenue Next 3Y4.24%
Revenue Next 5Y4.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.37, the valuation of DNB can be described as reasonable.
Based on the Price/Earnings ratio, DNB is valued cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.93. DNB is valued rather cheaply when compared to this.
DNB is valuated cheaply with a Price/Forward Earnings ratio of 7.83.
Based on the Price/Forward Earnings ratio, DNB is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
DNB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
DNB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DNB is cheaper than 78.75% 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 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 9.09 |
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)1.43
PEG (5Y)N/A
EPS Next 2Y7.77%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, DNB has a reasonable but not impressive dividend return.
DNB's Dividend Yield is rather good when compared to the industry average which is at 2.28. DNB pays more dividend than 87.50% of the companies in the same industry.
DNB's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
DNB has been paying a dividend for at least 10 years, so it has a reliable track record.
DNB has decreased its dividend 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%
9.09
-0.01 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners85.92%
Inst Owner Change-15.09%
Ins Owners5.23%
Ins Owner Change4.35%
Market Cap4.06B
Analysts50.77
Price Target10.03 (10.34%)
Short Float %4.54%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)0%
PT rev (3m)-2.31%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 7.83 | ||
| P/S | 1.69 | ||
| P/FCF | 19.14 | ||
| P/OCF | 9.78 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.09 |
EPS(TTM)0.97
EY10.67%
EPS(NY)1.16
Fwd EY12.78%
FCF(TTM)0.47
FCFY5.22%
OCF(TTM)0.93
OCFY10.22%
SpS5.37
BVpS7.38
TBVpS-9.58
PEG (NY)1.43
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 | 0.62 |
F-Score5
WACC8.13%
ROIC/WACC0.29
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)-4.9%
EPS 3Y-3.13%
EPS 5YN/A
EPS Q2Q%-17.39%
EPS Next Y6.56%
EPS Next 2Y7.77%
EPS Next 3Y8.75%
EPS Next 5Y10.07%
Revenue 1Y (TTM)2.93%
Revenue growth 3Y3.22%
Revenue growth 5Y8.38%
Sales Q2Q%1.56%
Revenue Next Year2.47%
Revenue Next 2Y3.63%
Revenue Next 3Y4.24%
Revenue Next 5Y4.67%
EBIT growth 1Y42.44%
EBIT growth 3Y7.44%
EBIT growth 5YN/A
EBIT Next Year20.99%
EBIT Next 3Y11.25%
EBIT Next 5Y9.32%
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