NYSE:RRD

Stock Analysis Report

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.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.

Risks

  • R.R. Donnelley & Sons has significant price volatility in the past 3 months.
  • R.R. Donnelley & Sons is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-15.4%

RRD

1.4%

US Commercial Services

-0.6%

US Market


1 Year Return

-49.7%

RRD

6.7%

US Commercial Services

0.6%

US Market

RRD underperformed the Commercial Services industry which returned 6% over the past year.

RRD underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

RRDIndustryMarket
7 Day-15.4%1.4%-0.6%
30 Day41.4%1.1%2.2%
90 Day25.8%0.8%1.1%
1 Year-47.9%-49.7%10.7%6.7%2.9%0.6%
3 Year-85.3%-93.9%67.1%55.7%44.6%35.2%
5 Year-83.4%-94.0%102.4%82.3%61.9%44.2%

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

3 weeks ago | Simply Wall St

Does R.R. Donnelley & Sons Company's (NYSE:RRD) CEO Salary Compare Well With Others?

Valuation

Is R.R. Donnelley & Sons undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

R.R. Donnelley & Sons's share price is below the future cash flow value, and at a moderate discount (> 20%).

R.R. Donnelley & Sons's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

R.R. Donnelley & Sons is loss making, we can't compare its value to the US Commercial Services industry average.

R.R. Donnelley & Sons is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for R.R. Donnelley & Sons, we can't assess if its growth is good value.


Price Based on Value of Assets

R.R. Donnelley & Sons has negative assets, we can't compare the value of its assets to the US Commercial Services industry average.


Next Steps

Future Growth

How is R.R. Donnelley & Sons expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

108.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

R.R. Donnelley & Sons's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).

R.R. Donnelley & Sons's earnings are expected to grow significantly at over 20% yearly.

R.R. Donnelley & Sons's revenue growth is positive but not above the United States of America market average.

R.R. Donnelley & Sons's earnings growth is expected to exceed the United States of America market average.

R.R. Donnelley & Sons's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if R.R. Donnelley & Sons will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-30.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

R.R. Donnelley & Sons does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare R.R. Donnelley & Sons's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare R.R. Donnelley & Sons's 1-year growth to the US Commercial Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if R.R. Donnelley & Sons has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

R.R. Donnelley & Sons used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if R.R. Donnelley & Sons improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

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


Financial Position Analysis

R.R. Donnelley & Sons is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

R.R. Donnelley & Sons's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

R.R. Donnelley & Sons has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if R.R. Donnelley & Sons's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

R.R. Donnelley & Sons has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making R.R. Donnelley & Sons has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making R.R. Donnelley & Sons has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40.8% per year.


Next Steps

Dividend

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

4.04%

Current Dividend Yield


Dividend Yield and Payments Analysis

R.R. Donnelley & Sons's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

R.R. Donnelley & Sons's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

  • Explore strong dividend paying companies in the Commercial Services industry.

Management

What is the CEO of R.R. Donnelley & Sons's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Daniel Knotts (55yo)

2.9yrs

Tenure

US$5,822,882

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 brings over 30 years of experience in the pri ...


CEO Compensation Analysis

Daniel's remuneration is higher than average for companies of similar size in United States of America.

Daniel's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

The tenure for the R.R. Donnelley & Sons management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

The average tenure for the R.R. Donnelley & Sons board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$225,07030 Aug 19
Chatham Asset Management
EntityCompany
Shares100,000
Max PriceUS$2.25
BuyUS$1,120,72228 Aug 19
Chatham Asset Management
EntityCompany
Shares508,000
Max PriceUS$2.25
BuyUS$1,432,87026 Aug 19
Chatham Asset Management
EntityCompany
Shares650,000
Max PriceUS$2.24
BuyUS$1,571,99822 Aug 19
Chatham Asset Management
EntityCompany
Shares776,000
Max PriceUS$2.07

Ownership Breakdown


Management Team

  • Mike Sharp (57yo)

    Senior VP

    • Tenure: 1.8yrs
  • Terry Peterson (54yo)

    Executive VP & CFO

    • Tenure: 2.9yrs
    • Compensation: US$1.86m
  • Ken O'Brien (58yo)

    Executive VP & Chief Information Officer

    • Tenure: 15.5yrs
    • Compensation: US$1.16m
  • Daniel Knotts (55yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$5.82m
  • Sheila Rutt (50yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.2yrs
  • David Gardella (49yo)

    Senior Vice President of Finance

    • Tenure: 0yrs
  • Doug Ryan (56yo)

    President of Marketing Solutions

    • Tenure: 1.4yrs
    • Compensation: US$1.61m
  • Deb Steiner (51yo)

    Executive VP

    • Tenure: 2.9yrs
    • Compensation: US$1.24m
  • John Pecaric (53yo)

    President of Business Services

    • Tenure: 1.4yrs
    • Compensation: US$1.44m
  • Brian Feeney

    Senior Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tim McLevish (64yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$276.08k
  • Jack Pope (70yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$449.02k
  • Jamie Moldafsky (58yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$251.08k
  • Irene Esteves (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$249.43k
  • Paul Phipps (57yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$276.08k
  • Susan Gianinno (70yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$272.46k
  • Daniel Knotts (55yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$5.82m

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$210.276m
  • Shares outstanding: 70.80m
  • Website: https://www.rrdonnelley.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLLNDB (Deutsche Boerse AG)COMDEUSDNo data
RRDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
DLLNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:34
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.