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 82 industry peers in the Professional Services industry. DNB has a bad profitability rating. Also its financial health evaluation is rather negative. DNB has a bad growth rate and is valued cheaply.
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.
DNB had negative earnings in each of the past 5 years.
Of the past 5 years DNB 4 years had a positive operating cash flow.
1.2 Ratios
DNB's Return On Assets of -0.39% is on the low side compared to the rest of the industry. DNB is outperformed by 64.56% of its industry peers.
DNB's Return On Equity of -1.04% is on the low side compared to the rest of the industry. DNB is outperformed by 65.82% of its industry peers.
DNB's Return On Invested Capital of 1.95% is on the low side compared to the rest of the industry. DNB is outperformed by 64.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DNB is significantly below the industry average of 13.65%.
The last Return On Invested Capital (1.95%) for DNB is above the 3 year average (1.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -1.04% | ||
| ROIC | 1.95% |
ROA(3y)-0.42%
ROA(5y)-2.28%
ROE(3y)-1.13%
ROE(5y)-7.55%
ROIC(3y)1.54%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 8.28%, DNB is in the better half of the industry, outperforming 63.29% of the companies in the same industry.
DNB's Operating Margin has declined in the last couple of years.
DNB's Gross Margin of 62.72% is fine compared to the rest of the industry. DNB outperforms 73.42% of its industry peers.
DNB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.28% | ||
| PM (TTM) | N/A | ||
| GM | 62.72% |
OM growth 3Y5.28%
OM growth 5Y-24.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.25%
GM growth 5Y-0.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DNB is destroying value.
There is no outstanding debt for DNB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
The Altman-Z score of DNB (0.61) is worse than 77.22% of its industry peers.
DNB has a debt to FCF ratio of 16.02. This is a negative value and a sign of low solvency as DNB would need 16.02 years to pay back of all of its debts.
DNB has a Debt to FCF ratio of 16.02. This is in the lower half of the industry: DNB underperforms 67.09% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that DNB has dependencies on debt financing.
DNB's Debt to Equity ratio of 1.09 is on the low side compared to the rest of the industry. DNB is outperformed by 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 16.02 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.22
WACC8.75%
2.3 Liquidity
DNB has a Current Ratio of 0.70. This is a bad value and indicates that DNB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DNB (0.70) is worse than 91.14% of its industry peers.
DNB has a Quick Ratio of 0.70. 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 0.70, DNB is doing worse than 88.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
DNB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been decreasing by -3.13% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-3.13%
EPS 5YN/A
EPS Q2Q%-6.25%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.24%
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 12.22% on average per year.
The Revenue is expected to grow by 5.32% on average over the next years.
EPS Next Y11.32%
EPS Next 2Y10.5%
EPS Next 3Y11.97%
EPS Next 5Y12.22%
Revenue Next Year4.56%
Revenue Next 2Y4.72%
Revenue Next 3Y5.27%
Revenue Next 5Y5.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.43, the valuation of DNB can be described as very reasonable.
88.61% 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 29.63. DNB is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.47, which indicates a very decent valuation of DNB.
Based on the Price/Forward Earnings ratio, DNB is valued cheaply inside the industry as 88.61% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DNB to the average of the S&P500 Index (22.68), we can say DNB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 8.47 |
4.2 Price Multiples
75.95% of the companies in the same industry are more expensive than DNB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DNB indicates a somewhat cheap valuation: DNB is cheaper than 69.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.23 | ||
| EV/EBITDA | 9.7 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y10.5%
EPS Next 3Y11.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, DNB has a reasonable but not impressive dividend return.
In the last 3 months the price of DNB has falen by -25.10%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.92, DNB pays a better dividend. On top of this DNB pays more dividend than 84.81% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, DNB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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 Years1
Div Non Decr Years2
5.3 Sustainability
DNB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-251.59%
EPS Next 2Y10.5%
EPS Next 3Y11.97%
9.43
-0.01 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.01%
Inst Owner Change0.55%
Ins Owners4.01%
Ins Owner Change0%
Market Cap4.16B
Analysts75.71
Price Target14.93 (58.32%)
Short Float %6.56%
Short Ratio7.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP-251.59%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.29%
Min EPS beat(2)-0.58%
Max EPS beat(2)1.17%
EPS beat(4)3
Avg EPS beat(4)0.71%
Min EPS beat(4)-0.58%
Max EPS beat(4)1.39%
EPS beat(8)6
Avg EPS beat(8)0.23%
EPS beat(12)8
Avg EPS beat(12)0.57%
EPS beat(16)12
Avg EPS beat(16)2.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)0.32%
Revenue beat(8)4
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.57%
PT rev (1m)0.77%
PT rev (3m)2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 8.47 | ||
| P/S | 1.75 | ||
| P/FCF | 18.23 | ||
| P/OCF | 9.14 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.7 |
EPS(TTM)1
EY10.6%
EPS(NY)1.11
Fwd EY11.81%
FCF(TTM)0.52
FCFY5.49%
OCF(TTM)1.03
OCFY10.94%
SpS5.39
BVpS7.55
TBVpS-10.08
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -1.04% | ||
| ROCE | 2.46% | ||
| ROIC | 1.95% | ||
| ROICexc | 2.02% | ||
| ROICexgc | N/A | ||
| OM | 8.28% | ||
| PM (TTM) | N/A | ||
| GM | 62.72% | ||
| FCFM | 9.6% |
ROA(3y)-0.42%
ROA(5y)-2.28%
ROE(3y)-1.13%
ROE(5y)-7.55%
ROIC(3y)1.54%
ROIC(5y)N/A
ROICexc(3y)1.57%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)1.95%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y16.47%
ROICexc growth 5Y-50.03%
OM growth 3Y5.28%
OM growth 5Y-24.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.25%
GM growth 5Y-0.94%
F-Score3
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 16.02 | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 39.15% | ||
| Cap/Sales | 9.54% | ||
| Interest Coverage | 0.9 | ||
| Cash Conversion | 58.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.61 |
F-Score3
WACC8.75%
ROIC/WACC0.22
Cap/Depr(3y)32.93%
Cap/Depr(5y)27.29%
Cap/Sales(3y)8.76%
Cap/Sales(5y)7.59%
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%-6.25%
EPS Next Y11.32%
EPS Next 2Y10.5%
EPS Next 3Y11.97%
EPS Next 5Y12.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.24%
Revenue Next Year4.56%
Revenue Next 2Y4.72%
Revenue Next 3Y5.27%
Revenue Next 5Y5.32%
EBIT growth 1Y30.12%
EBIT growth 3Y15.82%
EBIT growth 5Y-19.51%
EBIT Next Year20.85%
EBIT Next 3Y10.75%
EBIT Next 5Y9.25%
FCF growth 1Y-32.61%
FCF growth 3Y50.47%
FCF growth 5Y-1.1%
OCF growth 1Y-16.02%
OCF growth 3Y32.23%
OCF growth 5Y6.8%