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LSC Communications

DB:2L3
Snowflake Description

Fair value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2L3
DB
$222M
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

LSC Communications, Inc. provides various traditional and digital print services, print-related services, and office products in the United States and internationally. The last earnings update was 65 days ago. More info.


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  • LSC Communications has significant price volatility in the past 3 months.
2L3 Share Price and Events
7 Day Returns
0.7%
DB:2L3
0.1%
DE Commercial Services
0.8%
DE Market
1 Year Returns
-57.1%
DB:2L3
-6.3%
DE Commercial Services
-4.5%
DE Market
2L3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LSC Communications (2L3) 0.7% 11.7% -10.8% -57.1% - -
DE Commercial Services 0.1% 3.3% 10.1% -6.3% 3.5% -41.2%
DE Market 0.8% 6.9% 8.1% -4.5% 10.4% 13.9%
1 Year Return vs Industry and Market
  • 2L3 underperformed the Commercial Services industry which returned -6.3% over the past year.
  • 2L3 underperformed the Market in Germany which returned -4.5% over the past year.
Price Volatility
2L3
Industry
5yr Volatility vs Market

2L3 Value

 Is LSC Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LSC Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LSC Communications.

DB:2L3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:2L3
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 21%) (345.23%))
2.166
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (2 * 5.96%)
12.15%

Discounted Cash Flow Calculation for DB:2L3 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LSC Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:2L3 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.15%)
2019 108.95 Analyst x2 97.15
2020 95.15 Est @ -12.66% 75.66
2021 86.79 Est @ -8.79% 61.53
2022 81.50 Est @ -6.09% 51.52
2023 78.08 Est @ -4.19% 44.02
2024 75.85 Est @ -2.87% 38.12
2025 74.38 Est @ -1.94% 33.33
2026 73.42 Est @ -1.29% 29.34
2027 72.81 Est @ -0.83% 25.94
2028 72.43 Est @ -0.52% 23.01
Present value of next 10 years cash flows $479.63
DB:2L3 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $72.43 × (1 + 0.23%) ÷ (12.15% – 0.23%)
$609.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $609.03 ÷ (1 + 12.15%)10
$193.52
DB:2L3 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $479.63 + $193.52
$673.15
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $673.15 / 33.51
$20.09
DB:2L3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:2L3 represents 0.93499x of NYSE:LKSD
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.93499x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 20.09 x 0.93499
€18.78
Value per share (EUR) From above. €18.78
Current discount Discount to share price of €6.20
= -1 x (€6.20 - €18.78) / €18.78
67%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LSC Communications is available for.
Intrinsic value
>50%
Share price is €6.2 vs Future cash flow value of €18.78
Current Discount Checks
For LSC Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LSC Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LSC Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LSC Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LSC Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:2L3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.68
NYSE:LKSD Share Price ** NYSE (2019-04-25) in USD $6.63
Europe Commercial Services Industry PE Ratio Median Figure of 105 Publicly-Listed Commercial Services Companies 17.06x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LSC Communications.

DB:2L3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LKSD Share Price ÷ EPS (both in USD)

= 6.63 ÷ -0.68

-9.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LSC Communications is loss making, we can't compare its value to the Europe Commercial Services industry average.
  • LSC Communications is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does LSC Communications's expected growth come at a high price?
Raw Data
DB:2L3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -9.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
Not available
Europe Commercial Services Industry PEG Ratio Median Figure of 53 Publicly-Listed Commercial Services Companies 1.4x
Germany Market PEG Ratio Median Figure of 268 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for LSC Communications, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on LSC Communications's assets?
Raw Data
DB:2L3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $5.37
NYSE:LKSD Share Price * NYSE (2019-04-25) in USD $6.63
Germany Commercial Services Industry PB Ratio Median Figure of 8 Publicly-Listed Commercial Services Companies 2.03x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:2L3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LKSD Share Price ÷ Book Value per Share (both in USD)

= 6.63 ÷ 5.37

1.23x

* Primary Listing of LSC Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LSC Communications is good value based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess LSC Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. LSC Communications has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2L3 Future Performance

 How is LSC Communications expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.4%
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LSC Communications expected to grow at an attractive rate?
  • LSC Communications is expected to become profitable in the next 1-3 years, this is considered above the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Unable to compare LSC Communications's earnings growth to the Germany market average as no estimate data is available.
  • Unable to compare LSC Communications's revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:2L3 Future Growth Rates Data Sources
Data Point Source Value (per year)
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 31.4%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:2L3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:2L3 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31 3,612 150 31 3
DB:2L3 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,826 162 -23
2018-09-30 3,886 121 -65
2018-06-30 3,806 101 -64
2018-03-31 3,711 117 -67
2017-12-31 3,603 205 -57
2017-09-30 3,523 153 10
2017-06-30 3,537 254 51
2017-03-31 3,595 281 74
2016-12-31 3,654 231 106
2016-09-30 3,739 255 135
2016-06-30 3,789 256 112
2016-03-31 3,762 270 96

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LSC Communications is expected to become profitable in the next 1-3 years, this is considered high growth.
  • Unable to determine if LSC Communications is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:2L3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from LSC Communications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2L3 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31 0.91 0.91 0.91 1.00
DB:2L3 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.68
2018-09-30 -1.90
2018-06-30 -1.86
2018-03-31 -1.95
2017-12-31 -1.69
2017-09-30 0.30
2017-06-30 1.55
2017-03-31 2.27
2016-12-31 3.26
2016-09-30 4.18
2016-06-30 3.46
2016-03-31 2.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if LSC Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess LSC Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LSC Communications has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2L3 Past Performance

  How has LSC Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LSC Communications's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LSC Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare LSC Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare LSC Communications's 1-year growth to the Europe Commercial Services industry average as it is not currently profitable.
Earnings and Revenue History
LSC Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LSC Communications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2L3 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,826.00 -23.00 270.00
2018-09-30 3,886.00 -65.00 268.00
2018-06-30 3,806.00 -64.00 270.00
2018-03-31 3,711.00 -67.00 263.00
2017-12-31 3,603.00 -57.00 252.00
2017-09-30 3,523.00 10.00 253.00
2017-06-30 3,537.00 51.00 278.00
2017-03-31 3,595.00 74.00 272.00
2016-12-31 3,654.00 106.00 259.00
2016-09-30 3,739.10 135.40 265.70
2016-06-30 3,789.10 112.10 271.80
2016-03-31 3,762.10 95.90 264.60
2015-12-31 3,743.00 74.00 266.00
2014-12-31 3,853.00 58.00 266.00
2013-12-31 3,741.00 94.50 277.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if LSC Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • LSC Communications used its assets less efficiently than the Europe Commercial Services industry average last year based on Return on Assets.
  • It is difficult to establish if LSC Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess LSC Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LSC Communications has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2L3 Health

 How is LSC Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LSC Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LSC Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LSC Communications's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of LSC Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LSC Communications Company Filings, last reported 3 months ago.

DB:2L3 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 178.00 767.00 21.00
2018-09-30 219.00 946.00 20.00
2018-06-30 221.00 914.00 22.00
2018-03-31 247.00 865.00 23.00
2017-12-31 248.00 822.00 34.00
2017-09-30 286.00 884.00 23.00
2017-06-30 263.00 744.00 98.00
2017-03-31 263.00 744.00 89.00
2016-12-31 240.00 794.00 95.00
2016-09-30 436.60 807.80 54.80
2016-06-30 1,260.90 4.10 64.50
2016-03-31 1,286.70 4.30 76.80
2015-12-31 1,277.00 5.00 95.00
2014-12-31 1,174.50 0.80 124.80
2013-12-31
  • LSC Communications's level of debt (430.9%) compared to net worth is high (greater than 40%).
  • Unable to establish if LSC Communications's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (21.1%, greater than 20% of total debt).
  • LSC Communications is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess LSC Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LSC Communications has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2L3 Dividends

 What is LSC Communications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
15.69%
Current annual income from LSC Communications dividends. Estimated to be 15.57% next year.
If you bought €2,000 of LSC Communications shares you are expected to receive €314 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • LSC Communications's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • LSC Communications's dividend is above the markets top 25% of dividend payers in Germany (3.67%).
Upcoming dividend payment

Purchase LSC Communications before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:2L3 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:2L3 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.04 1.00
2020-12-31 1.04 1.00
2019-12-31 1.03 3.00
DB:2L3 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-10 1.040 15.012
2019-01-17 1.040 13.798
2018-10-25 1.040 12.009
2018-07-19 1.040 9.214
2018-04-04 1.040 7.275
2018-01-18 1.040 7.029
2017-10-26 1.000 6.555
2017-07-20 1.000 5.877
2017-04-06 1.000 4.485
2017-01-18 1.000 3.894
2016-11-10 1.000 4.261

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, LSC Communications has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but LSC Communications only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of LSC Communications's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess LSC Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LSC Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LSC Communications has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2L3 Management

 What is the CEO of LSC Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Quinlan
COMPENSATION $1,350,483
AGE 55
TENURE AS CEO 2.5 years
CEO Bio

Mr. Thomas J. Quinlan, III, also known as Tom, is the Chairman, President and Chief Executive Officer of LSC Communications, Inc. since October 2016. Mr. Quinlan was a Co-Founder and Director of Work-Bench Ventures. He served as the Chief Executive Officer and President of R.R. Donnelley & Sons Company from April 2007 to September 30, 2016 and also served as its Chief Financial Officer from April 2006 to October 2007, Interim Chief Financial Officer since May 11, 2006, Group President of Global Services from October 2006 to April 2007 and Executive Vice President of Operations from joining it in February 2004 to October 2006. He has previous finance and treasury experience at Walter Industries Inc., Marsh & McLennan Companies Inc. and Kidder Peabody. He served as the Chief Executive Officer and President of The Nielsen Company (US), LLC. He served as an Executive Vice President of Office of the Chief Executive at Moore Wallace Inc. and also served as its Executive Vice President of Business Integration since May 2003, Executive Vice President of Operations since May 2004, Member Office of the Chief Executive of Moore Wallace Inc. since January 2003, Executive Vice President since July 2002, Executive Vice President of Corporate Operations and Treasurer from July 2002 to December 2002. At Moore Wallace, he was primary responsibility for the integration of Moore Corporation Limited and Wallace Computer Services. He served as an Executive Vice President and Treasurer of Moore Corporation Limited from December 2000 to December 2002. He served as Vice President of Sales for Paylocity Corporation since 2005. From April 2000 to September 2000, he served as an Executive Vice President and Treasurer of Walter Industries Inc. From July 1998 to November 1999, he served as Senior Vice President of World Color LLC and also served as its Treasurer from July 1997 to July 1998. From 1994 to 1999, he served at World Color. He served as Vice President of Quebecor World USA, Inc. since July 1997 and also served as its Assistant Treasurer from February 1994 to July 1997. He served as an Executive Vice President and Treasurer of Walter Energy, Inc., from April 2000 to September 2000. He has familiarity with a broad range of operational issues, including sales, manufacturing and corporate staff functions, as a result of his many experiences in management roles across several industries. Prior to World Color, he served as a Manager of Treasury Administration at Marsh & McLennan Companies Inc. He is active in supporting organizations that focus on literacy, health and development and serves as a Director for the National Merit Scholarship Corporation and on the Board of Trustees for Pace University. He served as a Director of Donnelley Financial Solutions, Inc. until September 30, 2016. He served as a Director of R.R. Donnelley & Sons Company from 2007 to September 30, 2016. The Advisory Board of New York University's Graphic Communications Management and Technology Program chose Mr. Quinlan to receive its 2011 Prism Award, which recognizes distinguished leadership in the graphic communications media industry. In 2011, he received AJC's National Human Relations Award, which honors professional and philanthropic leadership. He has over 15 years of sales and management experience. Mr. Quinlan holds an MBA in Finance from St. John's University, which recognized him with its Outstanding Alumni Achievement Medal in 2010 and a Bachelors of Science in Finance and Business Administration from Pace University, which conferred upon him an Honorary Doctorate in Commercial Science and presented him with its 46th Leaders in Management Award in 2009. He holds a Bachelor's degree in Accounting from St. Mary's University and a Masters in Accounting from Roosevelt University.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year.
  • Tom's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the LSC Communications management team in years:

2.5
Average Tenure
53
Average Age
  • The tenure for the LSC Communications management team is about average.
Management Team

Tom Quinlan

TITLE
Chairman
COMPENSATION
$1M
AGE
55
TENURE
2.5 yrs

Andrew Coxhead

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
49
TENURE
2.5 yrs

Kent Hansen

TITLE
Chief Accounting Officer & Controller
COMPENSATION
$444K
AGE
46
TENURE
2.5 yrs

Suzanne Bettman

TITLE
Chief Administrative Officer
COMPENSATION
$2M
AGE
53
TENURE
2.5 yrs

Rick Lane

TITLE
Chief Strategy & Supply Chain Officer
COMPENSATION
$1M
AGE
61
TENURE
2.5 yrs

Janet Halpin

TITLE
Senior VP of Investor Relations & Treasurer
TENURE
2.5 yrs
Board of Directors Tenure

Average tenure and age of the LSC Communications board of directors in years:

3.3
Average Tenure
60
Average Age
  • The tenure for the LSC Communications board of directors is about average.
Board of Directors

Richard Palmer

TITLE
Independent Director
COMPENSATION
$252K
AGE
51
TENURE
3.3 yrs

Tom Quinlan

TITLE
Chairman
COMPENSATION
$1M
AGE
55
TENURE
2.5 yrs

Judith Hamilton

TITLE
Lead Director
COMPENSATION
$382K
AGE
73
TENURE
2.5 yrs

Margaret Atkins

TITLE
Independent Director
COMPENSATION
$225K
AGE
61
TENURE
2.5 yrs

Marge Breya

TITLE
Independent Director
COMPENSATION
$225K
AGE
56
TENURE
3.3 yrs

Frank Jules

TITLE
Independent Director
COMPENSATION
$250K
AGE
61
TENURE
3.3 yrs

Tom O’Toole

TITLE
Independent Director
COMPENSATION
$225K
AGE
60
TENURE
3.3 yrs

Doug Stotlar

TITLE
Independent Director
COMPENSATION
$225K
AGE
57
TENURE
3.3 yrs

Shivan Subramaniam

TITLE
Independent Director
COMPENSATION
$225K
AGE
69
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess LSC Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LSC Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2L3 News

Simply Wall St News

2L3 Company Info

Description

LSC Communications, Inc. provides various traditional and digital print services, print-related services, and office products in the United States and internationally. It operates through Magazines, Catalogs and Logistics; Book; Office Products; and Other segments. The Magazines, Catalogs and Logistics segment produces magazines and catalogs, as well as provides logistics solutions to the company and other third parties. This segment also provides other print-related services, including mail-list management and sortation. The Book segment produces books for publishers; and provides supply-chain management, and warehousing and fulfillment services, as well as e-book formatting for book publishers. The Office Products segment manufactures and sells branded and private label products in various categories, such as filing products, envelopes, note-taking products, binder products, and forms. The Other segment produces magazines, catalogs, directories, statements, forms, and labels, as well as provides packaging and pre-media services; and provides outsourced print procurement and management services. LSC Communications, Inc. serves printed products service retailers, including catalogers and merchandisers; publishers of magazines, books, and directories; online retailers; and office superstores, office supply wholesalers, independent contract stationers, mass merchandisers, and retailers and e-commerce resellers through the United States Postal Service or foreign postal services, as well as through direct shipment and online retailers. The company was founded in 2016 and is based in Chicago, Illinois.

Details
Name: LSC Communications, Inc.
2L3
Exchange: DB
Founded: 2016
$199,465,494
33,510,017
Website: http://www.lsccom.com
Address: LSC Communications, Inc.
191 North Wacker Drive,
Suite 1400,
Chicago,
Illinois, 60606,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LKSD Common Stock New York Stock Exchange US USD 26. Sep 2016
DB 2L3 Common Stock Deutsche Boerse AG DE EUR 26. Sep 2016
Number of employees
Current staff
Staff numbers
22,000
LSC Communications employees.
Industry
Commercial Printing
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 22:52
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.