NYSE:DFIN

Stock Analysis Report

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Executive Summary

Donnelley Financial Solutions, Inc. operates as a risk and compliance solutions company in the United States, Europe, Asia, Canada, and Latin America. More Details


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Donnelley Financial Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DFIN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.7%

DFIN

0.01%

US Capital Markets

-1.3%

US Market


1 Year Return

27.1%

DFIN

9.9%

US Capital Markets

18.5%

US Market

Return vs Industry: DFIN exceeded the US Capital Markets industry which returned 9.9% over the past year.

Return vs Market: DFIN exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

DFINIndustryMarket
7 Day5.7%0.01%-1.3%
30 Day24.2%5.9%5.3%
90 Day67.1%2.8%7.5%
1 Year27.1%27.1%12.7%9.9%21.3%18.5%
3 Year-34.5%-34.5%22.6%13.1%42.4%32.9%
5 Yearn/a70.9%49.4%84.2%63.5%

Price Volatility Vs. Market

How volatile is Donnelley Financial Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Donnelley Financial Solutions undervalued compared to its fair value and its price relative to the market?

19.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DFIN ($14.12) is trading above our estimate of fair value ($12.76)

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


Price To Earnings Ratio

PE vs Industry: DFIN is good value based on its PE Ratio (19.7x) compared to the US Capital Markets industry average (22.9x).

PE vs Market: DFIN is poor value based on its PE Ratio (19.7x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: DFIN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: DFIN is good value based on its PB Ratio (1.8x) compared to the US Capital Markets industry average (4.8x).


Next Steps

Future Growth

How is Donnelley Financial Solutions forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

33.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DFIN's forecast earnings growth (33.2% per year) is above the savings rate (2.2%).

Earnings vs Market: DFIN's earnings (33.2% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: DFIN's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: DFIN's revenue is forecast to decline over the next 3 years (-4.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Donnelley Financial Solutions performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DFIN has high quality earnings.

Growing Profit Margin: DFIN's current net profit margins (2.8%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: DFIN's earnings have declined by 22.2% per year over the past 5 years.

Accelerating Growth: DFIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DFIN had negative earnings growth (-60.8%) over the past year, making it difficult to compare to the Capital Markets industry average (11.9%).


Return on Equity

High ROE: DFIN's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Donnelley Financial Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: DFIN's short term assets ($315.3M) exceed its short term liabilities ($191.5M).

Long Term Liabilities: DFIN's short term assets ($315.3M) do not cover its long term liabilities ($501.9M).


Debt to Equity History and Analysis

Debt Level: DFIN's debt to equity ratio (129.7%) is considered high.

Reducing Debt: DFIN's debt to equity ratio has increased from 11.8% to 129.7% over the past 5 years.

Debt Coverage: DFIN's debt is well covered by operating cash flow (27.3%).

Interest Coverage: DFIN's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Donnelley Financial Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DFIN'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 DFIN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DFIN'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 Leib (54 yo)

4yrs

Tenure

US$4,323,789

Compensation

Mr. Daniel N. Leib, also known as Dan, has been Chief Executive Officer, President and Director of Donnelley Financial Solutions, Inc. since October 1, 2016. Mr. Leib served as the Chief Financial Officer ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD4.32M) is above average for companies of similar size in the US market ($USD1.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Leib
President4yrsUS$4.32m0.73%
$ 3.5m
David Gardella
Executive VP & CFO4yrsUS$1.69m0.19%
$ 887.6k
Thomas Juhase
Chief Operating Officer4yrsUS$2.34m0.18%
$ 855.8k
Kami Turner
Senior VP4yrsUS$670.15k0.029%
$ 139.9k
Jennifer Reiners
Executive VP4yrsUS$1.16m0.072%
$ 343.8k
Eric Foster
Chief Information Officer0.58yrno datano data
Justin Ritchie
Senior Vice President of Investor Relationsno datano datano data
Kirk Williams
Chief Human Resources Officerno datano datano data
Peggy Cohen
Senior Vice President of Global Capital Marketsno datano datano data
Jons Besch
Executive Vice President of Global Operations & Strategic Sourcingno datano datano data
Craig Clay
President of Global Capital Marketsno datano datano data
Floyd Strimling
Chief Product Officerno datano datano data

4.0yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Daniel Leib
President4yrsUS$4.32m0.73%
$ 3.5m
Richard Crandall
Independent Chairman4yrsUS$304.31k0.12%
$ 549.8k
Gary Greenfield
Independent Director4yrsUS$225.00k0.060%
$ 287.2k
Charles Drucker
Independent Director4yrsUS$200.00k0.21%
$ 993.2k
Juliet Ellis
Independent Director2yrsUS$205.00k0.014%
$ 65.3k
Lois Martin
Independent Director4yrsUS$220.00k0.060%
$ 287.2k
Luis Aguilar
Independent Director4yrsUS$215.00k0.045%
$ 216.6k
Jeffrey Jacobowitz
Independent Director1.42yrsUS$200.00kno data

4.0yrs

Average Tenure

57yo

Average Age

Experienced Board: DFIN's board of directors are considered experienced (4 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

Donnelley Financial Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Donnelley Financial Solutions, Inc.
  • Ticker: DFIN
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$477.668m
  • Shares outstanding: 33.83m
  • Website: https://www.dfinsolutions.com

Number of Employees


Location

  • Donnelley Financial Solutions, Inc.
  • 35 West Wacker Drive
  • Chicago
  • Illinois
  • 60601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1DNDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2016
DFINNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2016

Biography

Donnelley Financial Solutions, Inc. operates as a risk and compliance solutions company in the United States, Europe, Asia, Canada, and Latin America. The Company provides regulatory filing and deal soluti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:56
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.