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RRD

R. R. Donnelley & SonsNYSE:RRD Stock Report

Market Cap

US$782.3m

7D

15.5%

1Y

677.5%

Updated

03 Dec, 2021

Data

Company Financials +
RRD fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health0/6
Dividends0/6

RRD Stock Overview

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

R. R. Donnelley & Sons Competitors

Brady

NYSE:BRC

US$2.7b

Cimpress

NasdaqGS:CMPR

US$2.0b

Deluxe

NYSE:DLX

US$1.4b

Ennis

NYSE:EBF

US$507.0m

Price History & Performance

Summary of all time highs, changes and price drops for R. R. Donnelley & Sons
Historical stock prices
Current Share PriceUS$10.73
52 Week HighUS$10.83
52 Week LowUS$1.31
Beta2.65
1 Month Change17.78%
3 Month Change116.33%
1 Year Change677.54%
3 Year Change96.16%
5 Year Change-38.30%
Change since IPO-86.11%

Recent News & Updates

Nov 25

R.R. Donnelley: Moving To The Sidelines

Chatham submits binding offer of $9.10/share. Chatham will increase offer to $9.34 if termination fee for Atlas is eliminated. Jefferies has committed to $1.68 billion to finance Chatham's offer. Additionally, Chatham offering to equitize or subordinate $784 million of RRD debt it owns. Lastly, Chatham filing lawsuit in Delaware court against RRD board and Atlas.

Nov 03

R. R. Donnelley: Multiple Bids Now. Management And The Board Must Engage All Parties

RRD signs a definitive agreement to be acquired by private equity firm Atlas for $8.52/share cash. 25-day go-shop period in place. Board did not engage Chatham, which has announced willingness to top the bid. Board and management must engage all parties and conduct a fair and transparent auction process or risk even more major breaches of fiduciary duties than they have already committed by not engaging Chatham.

Oct 19

R. R. Donnelley: $7.50 Offer On The Table, 15% Upside

Chatham Asset Management has pursued a public campaign for several months encouraging the company to refresh the board and explore strategic alternatives to no avail. Last week, they offered to acquire the company for $7.50/share, a 52% premium to its previous close and a price the stock has not seen in over 3 years. 15% return in the stock (to the offer price) as the market clearly questioning management will do the right thing and accept the offer.

Shareholder Returns

RRDUS Commercial ServicesUS Market
7D15.5%-1.8%-2.7%
1Y677.5%20.6%16.6%

Return vs Industry: RRD exceeded the US Commercial Services industry which returned 23% over the past year.

Return vs Market: RRD exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is RRD's price volatile compared to industry and market?
RRD volatility
RRD Average Weekly Movement15.9%
Commercial Services Industry Average Movement5.6%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: RRD is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: RRD's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
186433,000Dan Knottshttps://www.rrd.com

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 Services segment offers commercial printing products and branded materials, including manuals, publications, brochures, business cards, flyers, post cards, posters, and promotional items; and packaging solutions comprising rigid boxes and in-box print materials for clients in the consumer electronics, healthcare and life sciences, cosmetics, and consumer packaged goods industries. It also provides customer billings, financial statements, healthcare communications, and insurance document statement printing services; and distribution, shipping, healthcare, durable goods, promotional, and consumer product goods packaging labels.

R. R. Donnelley & Sons Fundamentals Summary

How do R. R. Donnelley & Sons's earnings and revenue compare to its market cap?
RRD fundamental statistics
Market CapUS$782.32m
Earnings (TTM)US$50.20m
Revenue (TTM)US$4.94b

15.6x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RRD income statement (TTM)
RevenueUS$4.94b
Cost of RevenueUS$3.95b
Gross ProfitUS$985.30m
ExpensesUS$935.10m
EarningsUS$50.20m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.69
Gross Margin19.97%
Net Profit Margin1.02%
Debt/Equity Ratio-677.6%

How did RRD perform over the long term?

See historical performance and comparison

Valuation

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

15.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RRD ($10.73) is trading above our estimate of fair value ($4.43)

Significantly Below Fair Value: RRD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RRD is good value based on its PE Ratio (15.6x) compared to the US Commercial Services industry average (27.7x).

PE vs Market: RRD is good value based on its PE Ratio (15.6x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: RRD is good value based on its PEG Ratio (0.4x)


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?

41.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRD's forecast earnings growth (41.6% per year) is above the savings rate (2%).

Earnings vs Market: RRD's earnings (41.6% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: RRD's revenue (2.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: RRD's revenue (2.5% 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?

67.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRD has a large one-off loss of $31.6M impacting its September 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 67.2% 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 (35.3%).


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 (6.3%).

Interest Coverage: RRD's interest payments on its debt are not well covered by EBIT (1.9x 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?

4.3yrs

Average management tenure


CEO

Dan Knotts (57 yo)

5.17yrs

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 ($USD7.05M) is above average for companies of similar size in the US market ($USD2.36M).

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 (4.3 years average tenure).


Board Members

Experienced Board: RRD's board of directors are considered experienced (5.2 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

R. R. Donnelley & Sons Company's 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$782.320m
  • Shares outstanding: 72.91m
  • Website: https://www.rrd.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:52
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
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.