DUN & BRADSTREET HOLDINGS IN (DNB) Stock Fundamental Analysis
NYSE:DNB - New York Stock Exchange, Inc. - US26484T1060 - Common Stock - Currency: USD
DNB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. DNB may be in some trouble as it scores bad on both profitability and health. DNB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year DNB was profitable.
In the past year DNB had a positive cash flow from operations.
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
DNB has a Return On Assets of -0.24%. This is in the lower half of the industry: DNB underperforms 62.20% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 2.36%, DNB is doing worse than 60.98% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DNB is significantly below the industry average of 12.27%.
The 3 year average ROIC (1.76%) for DNB is below the current ROIC(2.36%), indicating increased profibility in the last year.
| 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
DNB's Operating Margin of 9.59% is fine compared to the rest of the industry. DNB outperforms 73.17% of its industry peers.
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 76.83% of the companies in the same industry.
DNB's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, DNB has more shares outstanding
Compared to 5 years ago, DNB has more shares outstanding
The debt/assets ratio for DNB is higher compared to a year ago.
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 Altman-Z score of 0.62. This is in the lower half of the industry: DNB underperforms 79.27% 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's Debt to FCF ratio of 16.64 is on the low side compared to the rest of the industry. DNB is outperformed by 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.
Looking at the Debt to Equity ratio, with a value of 1.06, DNB is doing worse than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.64 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.28
WACC8.54%
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 has a Current ratio of 0.62. This is amonst the worse of the industry: DNB underperforms 91.46% 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.
DNB has a worse Quick ratio (0.62) than 90.24% 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%.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
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
Based on estimates for the next years, DNB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
The Revenue is expected to grow by 4.67% on average over the next years.
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 5Y4.67%
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
A Price/Earnings ratio of 9.02 indicates a reasonable valuation of DNB.
91.46% of the companies in the same industry are more expensive than DNB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. DNB is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.84, which indicates a rather cheap valuation of DNB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DNB indicates a rather cheap valuation: DNB is cheaper than 91.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DNB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNB indicates a rather cheap valuation: DNB is cheaper than 80.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DNB is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.18 | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
DNB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y7.77%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
DNB has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.06, DNB pays a better dividend. On top of this DNB pays more dividend than 85.37% of the companies listed in the same industry.
DNB's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| 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.
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
DNB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-410.85%
EPS Next 2Y7.77%
EPS Next 3Y8.75%
9.11
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners86.75%
Inst Owner Change0%
Ins Owners5.23%
Ins Owner Change4.35%
Market Cap4.07B
Analysts50.77
Price Target10.03 (10.1%)
Short Float %5.63%
Short Ratio2.07
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)-2.31%
PT rev (3m)-7.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 7.84 | ||
| P/S | 1.7 | ||
| P/FCF | 19.18 | ||
| P/OCF | 9.8 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.1 |
EPS(TTM)1.01
EY11.09%
EPS(NY)1.16
Fwd EY12.75%
FCF(TTM)0.47
FCFY5.21%
OCF(TTM)0.93
OCFY10.2%
SpS5.37
BVpS7.38
TBVpS-9.58
PEG (NY)1.38
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
WACC8.54%
ROIC/WACC0.28
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 5Y4.67%
EBIT growth 1Y42.44%
EBIT growth 3Y7.44%
EBIT growth 5YN/A
EBIT Next Year21.12%
EBIT Next 3Y10.98%
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