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DONNELLEY FINANCIAL SOLUTION (DFIN) Stock Fundamental Analysis

NYSE:DFIN - New York Stock Exchange, Inc. - US25787G1004 - Common Stock

65.71  +3.63 (+5.85%)

After market: 65.42 -0.29 (-0.44%)

Fundamental Rating

6

DFIN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 224 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making DFIN a very profitable company, without any liquidiy or solvency issues. DFIN has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year DFIN was profitable.
DFIN had a positive operating cash flow in the past year.
Of the past 5 years DFIN 4 years were profitable.
Each year in the past 5 years DFIN had a positive operating cash flow.
DFIN Yearly Net Income VS EBIT VS OCF VS FCFDFIN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M 200M

1.2 Ratios

The Return On Assets of DFIN (11.46%) is better than 89.95% of its industry peers.
Looking at the Return On Equity, with a value of 21.75%, DFIN belongs to the top of the industry, outperforming 91.32% of the companies in the same industry.
DFIN's Return On Invested Capital of 17.49% is amongst the best of the industry. DFIN outperforms 95.89% of its industry peers.
DFIN had an Average Return On Invested Capital over the past 3 years of 21.90%. This is significantly above the industry average of 6.66%.
The last Return On Invested Capital (17.49%) for DFIN is well below the 3 year average (21.90%), which needs to be investigated, but indicates that DFIN had better years and this may not be a problem.
Industry RankSector 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%
DFIN Yearly ROA, ROE, ROICDFIN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40

1.3 Margins

Looking at the Profit Margin, with a value of 12.06%, DFIN is in line with its industry, outperforming 42.47% of the companies in the same industry.
In the last couple of years the Profit Margin of DFIN has grown nicely.
Looking at the Operating Margin, with a value of 18.00%, DFIN is doing worse than 61.64% of the companies in the same industry.
DFIN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.45%, DFIN is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
In the last couple of years the Gross Margin of DFIN has grown nicely.
Industry RankSector 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%
DFIN Yearly Profit, Operating, Gross MarginsDFIN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40

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8

2. Health

2.1 Basic Checks

The number of shares outstanding for DFIN has been increased compared to 1 year ago.
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.
DFIN Yearly Shares OutstandingDFIN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
DFIN Yearly Total Debt VS Total AssetsDFIN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 5.28 indicates that DFIN is not in any danger for bankruptcy at the moment.
The Altman-Z score of DFIN (5.28) is better than 85.84% of its industry peers.
DFIN has a debt to FCF ratio of 1.09. This is a very positive value and a sign of high solvency as it would only need 1.09 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.09, DFIN belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that DFIN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, DFIN is doing good in the industry, outperforming 77.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.09
Altman-Z 5.28
ROIC/WACCN/A
WACCN/A
DFIN Yearly LT Debt VS Equity VS FCFDFIN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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.
DFIN has a Current ratio (1.15) which is comparable to the rest of the industry.
A Quick Ratio of 1.15 indicates that DFIN should not have too much problems paying its short term obligations.
DFIN has a Quick ratio (1.15) which is comparable to the rest of the industry.
DFIN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 1.15
DFIN Yearly Current Assets VS Current LiabilitesDFIN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

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4

3. Growth

3.1 Past

DFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.93%, which is quite good.
The Earnings Per Share has been growing by 16.10% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.74% in the past year.
The Revenue has been decreasing by -3.71% on average over the past years.
EPS 1Y (TTM)11.93%
EPS 3Y16.7%
EPS 5Y16.1%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)1.74%
Revenue growth 3Y-3.77%
Revenue growth 5Y-3.71%
Sales Q2Q%-0.28%

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 10.99% yearly.
The Revenue is expected to grow by 3.03% on average over the next years.
EPS Next Y9.65%
EPS Next 2Y12.24%
EPS Next 3Y10.99%
EPS Next 5YN/A
Revenue Next Year0.52%
Revenue Next 2Y2.36%
Revenue Next 3Y3.03%
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.
DFIN Yearly Revenue VS EstimatesDFIN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
DFIN Yearly EPS VS EstimatesDFIN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.95, the valuation of DFIN can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as DFIN.
DFIN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.85 indicates a correct valuation of DFIN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DFIN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DFIN to the average of the S&P500 Index (24.44), we can say DFIN is valued slightly cheaper.
Industry RankSector Rank
PE 17.95
Fwd PE 15.85
DFIN Price Earnings VS Forward Price EarningsDFIN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

DFIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DFIN is cheaper than 88.13% of the companies in the same industry.
DFIN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 15.82
EV/EBITDA 9.71
DFIN Per share dataDFIN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DFIN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)1.12
EPS Next 2Y12.24%
EPS Next 3Y10.99%

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0

5. Dividend

5.1 Amount

No dividends for DFIN!.
Industry RankSector Rank
Dividend Yield N/A

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DONNELLEY FINANCIAL SOLUTION

NYSE:DFIN (1/21/2025, 8:04:00 PM)

After market: 65.42 -0.29 (-0.44%)

65.71

+3.63 (+5.85%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-18 2025-02-18/amc
Inst Owners96.82%
Inst Owner Change-0.12%
Ins Owners4.26%
Ins Owner Change-6.35%
Market Cap1.90B
Analysts82.22
Price Target76.5 (16.42%)
Short Float %4.54%
Short Ratio5.86
Dividend
Industry RankSector 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)0%
PT rev (3m)-4.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.88%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-2.1%
Valuation
Industry RankSector Rank
PE 17.95
Fwd PE 15.85
P/S 2.36
P/FCF 15.82
P/OCF 10.01
P/B 4.27
P/tB N/A
EV/EBITDA 9.71
EPS(TTM)3.66
EY5.57%
EPS(NY)4.14
Fwd EY6.31%
FCF(TTM)4.15
FCFY6.32%
OCF(TTM)6.57
OCFY9.99%
SpS27.79
BVpS15.4
TBVpS-1.95
PEG (NY)1.86
PEG (5Y)1.12
Profitability
Industry RankSector 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 RankSector 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 5.28
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)11.93%
EPS 3Y16.7%
EPS 5Y16.1%
EPS Q2Q%-33.33%
EPS Next Y9.65%
EPS Next 2Y12.24%
EPS Next 3Y10.99%
EPS Next 5YN/A
Revenue 1Y (TTM)1.74%
Revenue growth 3Y-3.77%
Revenue growth 5Y-3.71%
Sales Q2Q%-0.28%
Revenue Next Year0.52%
Revenue Next 2Y2.36%
Revenue Next 3Y3.03%
Revenue Next 5YN/A
EBIT growth 1Y9.64%
EBIT growth 3Y15.96%
EBIT growth 5Y0.57%
EBIT Next Year54.55%
EBIT Next 3Y20.83%
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%