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Market Cap

US$294.8m

Last Updated

2021/09/22 00:10 UTC

Data Sources

Company Financials +

Executive Summary

R.R. Donnelley & Sons Company, an integrated communications provider, enables organizations to create, manage, deliver, and optimize their multichannel marketing and business communications. More Details


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has R. R. Donnelley & Sons's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RRD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RRD's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-3.3%

RRD

-1.4%

US Commercial Services

-1.8%

US Market


1 Year Return

202.2%

RRD

26.3%

US Commercial Services

31.5%

US Market

Return vs Industry: RRD exceeded the US Commercial Services industry which returned 27.6% over the past year.

Return vs Market: RRD exceeded the US Market which returned 33% over the past year.


Shareholder returns

RRDIndustryMarket
7 Day-3.3%-1.4%-1.8%
30 Day-16.0%-0.4%-0.9%
90 Day-35.1%3.9%0.8%
1 Year202.2%202.2%27.8%26.3%33.5%31.5%
3 Year-23.2%-27.2%51.8%42.2%57.5%47.8%
5 Year-79.3%-91.6%132.3%110.6%119.1%95.3%

Long-Term Price Volatility Vs. Market

How volatile is R. R. Donnelley & Sons's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is R. R. Donnelley & Sons undervalued compared to its fair value and its price relative to the market?

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RRD ($4.05) is trading below our estimate of fair value ($6.21)

Significantly Below Fair Value: RRD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RRD is good value based on its PE Ratio (23.4x) compared to the US Commercial Services industry average (32x).

PE vs Market: RRD is poor value based on its PE Ratio (23.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: RRD is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: RRD has negative assets, so we can't compare its PB Ratio to the US Commercial Services industry average.


Future Growth

How is R. R. Donnelley & Sons forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

90.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRD's forecast earnings growth (90.7% per year) is above the savings rate (2%).

Earnings vs Market: RRD's earnings (90.7% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RRD's revenue (2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: RRD's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RRD's Return on Equity is forecast to be high in 3 years time


Past Performance

How has R. R. Donnelley & Sons performed over the past 5 years?

57.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRD has a large one-off loss of $82.1M impacting its June 30 2021 financial results.

Growing Profit Margin: RRD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RRD has become profitable over the past 5 years, growing earnings by 57.9% per year.

Accelerating Growth: RRD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RRD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (30.4%).


Return on Equity

High ROE: RRD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is R. R. Donnelley & Sons's financial position?


Financial Position Analysis

Short Term Liabilities: RRD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RRD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RRD has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RRD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: RRD's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: RRD's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

What is R. R. Donnelley & Sons's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RRD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RRD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RRD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RRD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RRD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RRD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Dan Knotts (57 yo)

4.92yrs

Tenure

US$7,051,810

Compensation

Mr. Daniel Lee Knotts, also known as Dan, has been the Chief Executive Officer and President of R.R. Donnelley & Sons Company since October 1, 2016. Mr. Knotts has many years of experience in the printing...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD7.05M) is above average for companies of similar size in the US market ($USD1.10M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RRD's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: RRD's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

R. R. Donnelley & Sons Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: R. R. Donnelley & Sons Company
  • Ticker: RRD
  • Exchange: NYSE
  • Founded: 1864
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: US$294.840m
  • Shares outstanding: 72.80m
  • Website: https://www.rrd.com

Number of Employees


Location

  • R. R. Donnelley & Sons Company
  • 35 West Wacker Drive
  • Chicago
  • Illinois
  • 60601
  • United States

Listings


Biography

R.R. Donnelley & Sons Company, an integrated communications provider, enables organizations to create, manage, deliver, and optimize their multichannel marketing and business communications. Its Business S...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:10
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.