DONNELLEY FINANCIAL SOLUTION (DFIN) Stock Fundamental Analysis
NYSE:DFIN - New York Stock Exchange, Inc. - US25787G1004 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to DFIN. DFIN was compared to 225 industry peers in the Capital Markets industry. DFIN has an excellent profitability rating, but there are some minor concerns on its financial health. DFIN has a valuation in line with the averages, but it does not seem to be growing.
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.
In multiple years DFIN reported negative net income over the last 5 years.
Of the past 5 years DFIN 4 years had a positive operating cash flow.
1.2 Ratios
DFIN's Return On Assets of 11.46% is amongst the best of the industry. DFIN outperforms 89.95% of its industry peers.
With an excellent Return On Equity value of 21.75%, DFIN belongs to the best of the industry, outperforming 91.32% of the companies in the same industry.
The Return On Invested Capital of DFIN (17.49%) is better than 95.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DFIN is significantly above the industry average of 6.76%.
The 3 year average ROIC (21.90%) for DFIN is well above the current ROIC(17.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.46% | ||
| ROE | 21.75% | ||
| ROIC | 17.49% |
ROA(3y)13.03%
ROA(5y)8.07%
ROE(3y)30.08%
ROE(5y)18.76%
ROIC(3y)21.9%
ROIC(5y)17.18%
1.3 Margins
With a Profit Margin value of 12.06%, DFIN perfoms like the industry average, outperforming 42.92% of the companies in the same industry.
In the last couple of years the Profit Margin of DFIN has grown nicely.
DFIN has a Operating Margin of 18.00%. This is in the lower half of the industry: DFIN underperforms 61.19% of its industry peers.
In the last couple of years the Operating Margin of DFIN has grown nicely.
Looking at the Gross Margin, with a value of 61.45%, DFIN is in the better half of the industry, outperforming 68.95% of the companies in the same industry.
DFIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18% | ||
| PM (TTM) | 12.06% | ||
| GM | 61.45% |
OM growth 3Y20.5%
OM growth 5Y4.44%
PM growth 3YN/A
PM growth 5Y6.17%
GM growth 3Y9.31%
GM growth 5Y8.32%
2. Health
2.1 Basic Checks
DFIN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DFIN has an Altman-Z score of 4.59. This indicates that DFIN is financially healthy and has little risk of bankruptcy at the moment.
DFIN's Altman-Z score of 4.59 is amongst the best of the industry. DFIN outperforms 83.56% of its industry peers.
The Debt to FCF ratio of DFIN is 1.09, which is an excellent value as it means it would take DFIN, only 1.09 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.09, DFIN belongs to the best of the industry, outperforming 86.76% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that DFIN is not too dependend on debt financing.
DFIN has a Debt to Equity ratio of 0.29. This is in the better half of the industry: DFIN outperforms 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | 4.59 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
DFIN has a Current Ratio of 1.15. This is a normal value and indicates that DFIN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DFIN (1.15) is comparable to the rest of the industry.
DFIN has a Quick Ratio of 1.15. This is a normal value and indicates that DFIN is financially healthy and should not expect problems in meeting its short term obligations.
DFIN has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
DFIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.86%.
The Earnings Per Share has been growing by 24.57% on average over the past years. This is a very strong growth
EPS 1Y (TTM)4.86%
EPS 3Y-11.4%
EPS 5Y24.57%
EPS Q2Q%-34.43%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-11.44%
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 12.36% yearly.
DFIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.29% yearly.
EPS Next Y16.19%
EPS Next 2Y12.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.17%
Revenue Next 2Y4.29%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.06 indicates a correct valuation of DFIN.
Compared to the rest of the industry, the Price/Earnings ratio of DFIN is on the same level as its industry peers.
DFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 12.10, the valuation of DFIN can be described as correct.
DFIN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of DFIN to the average of the S&P500 Index (22.68), we can say DFIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DFIN is valued cheaper than 91.78% of the companies in the same industry.
DFIN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DFIN is cheaper than 67.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 7.5 |
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 12.36% in the coming years.
PEG (NY)0.87
PEG (5Y)0.57
EPS Next 2Y12.36%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DFIN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.51
-1.49 (-2.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners96.82%
Inst Owner Change5.06%
Ins Owners4.26%
Ins Owner Change-3.77%
Market Cap1.40B
Analysts82.22
Price Target78.2 (61.2%)
Short Float %4.36%
Short Ratio6.23
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)-10.92%
Min EPS beat(2)-37.67%
Max EPS beat(2)15.83%
EPS beat(4)3
Avg EPS beat(4)-1.71%
Min EPS beat(4)-37.67%
Max EPS beat(4)15.83%
EPS beat(8)6
Avg EPS beat(8)5.45%
EPS beat(12)7
Avg EPS beat(12)6.4%
EPS beat(16)11
Avg EPS beat(16)25.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.87%
Min Revenue beat(2)-3%
Max Revenue beat(2)-2.73%
Revenue beat(4)1
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-6.4%
Max Revenue beat(4)2.17%
Revenue beat(8)3
Avg Revenue beat(8)-2.02%
Revenue beat(12)4
Avg Revenue beat(12)-1.65%
Revenue beat(16)8
Avg Revenue beat(16)2.05%
PT rev (1m)2.22%
PT rev (3m)-2.34%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)0.69%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 12.1 | ||
| P/S | 1.75 | ||
| P/FCF | 11.68 | ||
| P/OCF | 7.39 | ||
| P/B | 3.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.5 |
EPS(TTM)3.45
EY7.11%
EPS(NY)4.01
Fwd EY8.26%
FCF(TTM)4.15
FCFY8.56%
OCF(TTM)6.57
OCFY13.54%
SpS27.79
BVpS15.4
TBVpS-1.95
PEG (NY)0.87
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.46% | ||
| ROE | 21.75% | ||
| ROCE | 22.69% | ||
| ROIC | 17.49% | ||
| ROICexc | 18.46% | ||
| ROICexgc | 109.13% | ||
| OM | 18% | ||
| PM (TTM) | 12.06% | ||
| GM | 61.45% | ||
| FCFM | 14.95% |
ROA(3y)13.03%
ROA(5y)8.07%
ROE(3y)30.08%
ROE(5y)18.76%
ROIC(3y)21.9%
ROIC(5y)17.18%
ROICexc(3y)23.45%
ROICexc(5y)18.43%
ROICexgc(3y)158.96%
ROICexgc(5y)119.55%
ROCE(3y)28.41%
ROCE(5y)22.29%
ROICexcg growth 3Y13.19%
ROICexcg growth 5Y0.39%
ROICexc growth 3Y14.02%
ROICexc growth 5Y1.94%
OM growth 3Y20.5%
OM growth 5Y4.44%
PM growth 3YN/A
PM growth 5Y6.17%
GM growth 3Y9.31%
GM growth 5Y8.32%
F-Score8
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.09 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 114.29% | ||
| Cap/Sales | 8.68% | ||
| Interest Coverage | 9.96 | ||
| Cash Conversion | 92.3% | ||
| Profit Quality | 123.99% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 4.59 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)110.34%
Cap/Depr(5y)96.49%
Cap/Sales(3y)6.17%
Cap/Sales(5y)5.42%
Profit Quality(3y)87.9%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.86%
EPS 3Y-11.4%
EPS 5Y24.57%
EPS Q2Q%-34.43%
EPS Next Y16.19%
EPS Next 2Y12.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-11.44%
Revenue Next Year4.17%
Revenue Next 2Y4.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.64%
EBIT growth 3Y15.96%
EBIT growth 5Y0.57%
EBIT Next Year54.64%
EBIT Next 3Y20.86%
EBIT Next 5YN/A
FCF growth 1Y19.66%
FCF growth 3Y-20.35%
FCF growth 5Y16.33%
OCF growth 1Y23.29%
OCF growth 3Y-7.01%
OCF growth 5Y13.34%