NYSE:DFIN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Very undervalued with limited growth.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.0%

DFIN

-4.2%

US Capital Markets

-4.2%

US Market


1 Year Return

-45.4%

DFIN

12.0%

US Capital Markets

14.0%

US Market

Return vs Industry: DFIN underperformed the US Capital Markets industry which returned 15.4% over the past year.

Return vs Market: DFIN underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

DFINIndustryMarket
7 Day-12.0%-4.2%-4.2%
30 Day-6.9%-2.1%-1.8%
90 Day-12.0%1.1%2.6%
1 Year-45.4%-45.4%14.3%12.0%16.3%14.0%
3 Year-61.8%-61.8%35.2%27.6%43.2%34.0%
5 Yearn/a74.5%58.3%65.9%47.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DFIN ($9.61) is trading below our estimate of fair value ($41.45)

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


Price To Earnings Ratio

PE vs Industry: DFIN is good value based on its PE Ratio (11x) compared to the Capital Markets industry average (33.9x).

PE vs Market: DFIN is good value based on its PE Ratio (11x) compared to the US market (18.2x).


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 (1.2x) compared to the US Capital Markets industry average (6.6x).


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?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DFIN's forecast earnings growth (18.6% per year) is above the savings rate (1.7%).

Earnings vs Market: DFIN's earnings (18.6% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: DFIN's earnings are forecast to grow, but not significantly.

Revenue vs Market: DFIN's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: DFIN's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DFIN's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

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

-18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DFIN has high quality earnings.

Growing Profit Margin: DFIN's current net profit margins (3.3%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: DFIN's earnings have declined by -18.8% 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 (-41.8%) over the past year, making it difficult to compare to the Capital Markets industry average (8.4%).


Return on Equity

High ROE: DFIN's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Donnelley Financial Solutions's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DFIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: DFIN's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: DFIN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DFIN has a sufficient allowance for bad loans.

Low Risk Liabilities: DFIN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DFIN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DFIN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DFIN has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

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

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

3.3yrs

Average management tenure


CEO

Dan Leib (53yo)

3.3yrs

Tenure

US$4,482,723

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 ($USD4.48M) is above average for companies of similar size in the US market ($USD1.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Leib
President3.3yrsUS$4.48m0.78% $2.4m
David Gardella
Executive VP & CFO3.3yrsUS$1.77m0.18% $536.8k
Thomas Juhase
Chief Operating Officer3.3yrsUS$1.83m0.19% $570.8k
Kami Turner
Senior VP3.3yrsUS$648.63k0.030% $91.9k
Jennifer Reiners
Chief Compliance Officer3.3yrsUS$1.07m0.077% $233.1k
Justin Ritchie
Senior Vice President of Investor Relations0yrsno datano data
Angela Williams
Chief Marketing Officer0yrsno datano data
Kirk Williams
Chief Human Resources Officer0yrsno datano data
Peggy Cohen
Senior Vice President of Global Capital Markets0yrsno datano data
Jons Besch
Executive Vice President of Global Operations & Strategic Sourcing0yrsno datano data

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: DFIN's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Leib
President3.3yrsUS$4.48m0.78% $2.4m
Richard Crandall
Independent Chairman3.3yrsUS$306.30k0.083% $250.9k
Gary Greenfield
Independent Director3.3yrsUS$225.00k0.059% $179.4k
Nanci Caldwell
Independent Director3.3yrsUS$200.00k0.045% $135.5k
Charles Drucker
Independent Director3.3yrsUS$200.00k0.045% $135.3k
Juliet Ellis
Independent Director1.3yrsUS$123.29k0.013% $40.8k
Lois Martin
Independent Director3.3yrsUS$220.00k0.045% $135.3k
Luis Aguilar
Independent Director3.3yrsUS$215.00k0.045% $135.3k
Jeffrey Jacobowitz
Independent Director0.8yrsno datano data

3.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DFIN's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DFIN 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$302.526m
  • Shares outstanding: 34.30m
  • 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 solutions through its software-as-a-service, technology-enabled services, and print and distribution solutions to public and private companies, mutual funds, and other regulated investment firms to serve their regulatory and compliance needs. It offers technology-enabled filing solutions for corporate clients within its capital markets offerings that allow U.S. public companies to comply with applicable U.S. Securities and Exchange Commission regulations, including filing agent services, digital document creation, and online content management tools that support their corporate financial transactions and regulatory reporting; solutions to facilitate clients’ communications with their shareholders; and virtual data rooms and other deal management solutions. The company also provides technology-enabled filing solutions for alternative investment and insurance investment companies, including cloud-based tools for creating and filing high-quality regulatory documents, as well as solutions for investors designed to improve the speed and accuracy of their access to investment information. Donnelley Financial Solutions, Inc. was founded in 1983 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:38
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
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.