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RR DONNELLEY & SONS CO (RRD) Stock Fundamental Analysis

NYSE:RRD - New York Stock Exchange, Inc. - Common Stock

10.84  0 (0%)

After market: 10.84 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to RRD. RRD was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of RRD have multiple concerns. RRD is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year RRD was profitable.
RRD Yearly Net Income VS EBIT VS OCF VS FCFRRD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 200M -200M 400M -400M 600M

1.2 Ratios

Industry RankSector Rank
ROA 0.12%
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
RRD Yearly ROA, ROE, ROICRRD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 100 200 300 400

1.3 Margins

Industry RankSector Rank
OM 3.96%
PM (TTM) 0.07%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
RRD Yearly Profit, Operating, Gross MarginsRRD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 5 -5 10 15 20

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2

2. Health

2.1 Basic Checks

The number of shares outstanding for RRD has been increased compared to 1 year ago.
RRD has a better debt/assets ratio than last year.
RRD Yearly Shares OutstandingRRD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M
RRD Yearly Total Debt VS Total AssetsRRD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 1.08, we must say that RRD is in the distress zone and has some risk of bankruptcy.
RRD has a Debt/Equity ratio of -8.21. This is a healthy value indicating a solid balance between debt and equity.
Industry RankSector Rank
Debt/Equity -8.21
Debt/FCF N/A
Altman-Z 1.08
ROIC/WACCN/A
WACCN/A
RRD Yearly LT Debt VS Equity VS FCFRRD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 500M 1B 1.5B 2B

2.3 Liquidity

RRD has a Current Ratio of 1.37. This is a normal value and indicates that RRD is financially healthy and should not expect problems in meeting its short term obligations.
A Quick Ratio of 1.10 indicates that RRD should not have too much problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 1.37
Quick Ratio 1.1
RRD Yearly Current Assets VS Current LiabilitesRRD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 1B 2B 3B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.36% over the past year.
The earnings per share for RRD have been decreasing by -25.36% on average. This is quite bad
The Revenue has been growing slightly by 4.14% in the past year.
RRD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.19% yearly.
EPS 1Y (TTM)2.36%
EPS 3Y22.92%
EPS 5Y-25.36%
EPS Q2Q%-18.31%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y-4.52%
Revenue growth 5Y-6.19%
Sales Q2Q%2.12%

3.2 Future

RRD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.12% yearly.
Based on estimates for the next years, RRD will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y1.78%
EPS Next 2Y16.66%
EPS Next 3Y22.5%
EPS Next 5Y17.12%
Revenue Next Year2.47%
Revenue Next 2Y3.46%
Revenue Next 3Y4.14%
Revenue Next 5Y5.23%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
RRD Yearly Revenue VS EstimatesRRD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
RRD Yearly EPS VS EstimatesRRD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 4

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.34, the valuation of RRD can be described as reasonable.
The average S&P500 Price/Earnings ratio is at 29.62. RRD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.19, the valuation of RRD can be described as very reasonable.
RRD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 8.34
Fwd PE 8.19
RRD Price Earnings VS Forward Price EarningsRRD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.11
RRD Per share dataRRD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as RRD's earnings are expected to grow with 22.50% in the coming years.
PEG (NY)4.69
PEG (5Y)N/A
EPS Next 2Y16.66%
EPS Next 3Y22.5%

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1

5. Dividend

5.1 Amount

With a yearly dividend of 0.33%, RRD is not a good candidate for dividend investing.
With a Dividend Yield of 0.33, RRD pays less dividend than the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 0.33%

5.2 History

RRD has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
RRD Yearly Dividends per shareRRD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 0.2 0.4 0.6 0.8 1

5.3 Sustainability

DP0%
EPS Next 2Y16.66%
EPS Next 3Y22.5%
RRD Yearly Income VS Free CF VS DividendRRD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 0 200M -200M 400M -400M

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RR DONNELLEY & SONS CO

NYSE:RRD (2/25/2022, 8:08:22 PM)

After market: 10.84 0 (0%)

10.84

0 (0%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-18 2022-02-18
Earnings (Next)04-25 2022-04-25
Inst Owners0.56%
Inst Owner Change-7.92%
Ins Owners6.22%
Ins Owner Change0%
Market Cap815.28M
Analysts80
Price Target11.07 (2.12%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.33%
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 8.34
Fwd PE 8.19
P/S 0.16
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 6.11
EPS(TTM)1.3
EY11.99%
EPS(NY)1.32
Fwd EY12.21%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS66
BVpS-2.38
TBVpSN/A
PEG (NY)4.69
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.12%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 3.96%
PM (TTM) 0.07%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover1.59
Health
Industry RankSector Rank
Debt/Equity -8.21
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.37
Quick Ratio 1.1
Altman-Z 1.08
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.36%
EPS 3Y22.92%
EPS 5Y-25.36%
EPS Q2Q%-18.31%
EPS Next Y1.78%
EPS Next 2Y16.66%
EPS Next 3Y22.5%
EPS Next 5Y17.12%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y-4.52%
Revenue growth 5Y-6.19%
Sales Q2Q%2.12%
Revenue Next Year2.47%
Revenue Next 2Y3.46%
Revenue Next 3Y4.14%
Revenue Next 5Y5.23%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A