Donnelley Financial Solutions, Inc.
Donnelley Financial Solutions, Inc. Fundamental Analysis
Donnelley Financial Solutions, Inc. (DFIN) shows weak financial fundamentals with a PE ratio of 38.10, profit margin of 4.22%, and ROE of 7.83%. The company generates $0.8B in annual revenue with weak year-over-year growth of -1.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DFIN's fundamental strength across five key dimensions:
Efficiency Score
WeakDFIN struggles to generate sufficient returns from assets.
Valuation Score
WeakDFIN trades at a premium to fair value.
Growth Score
ModerateDFIN shows steady but slowing expansion.
Financial Health Score
ExcellentDFIN maintains a strong and stable balance sheet.
Profitability Score
WeakDFIN struggles to sustain strong margins.
Key Financial Metrics
Is DFIN Expensive or Cheap?
P/E Ratio
DFIN trades at 38.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DFIN's PEG of 21.15 indicates potential overvaluation.
Price to Book
The market values Donnelley Financial Solutions, Inc. at 3.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.05 times EBITDA. This is generally considered low.
How Well Does DFIN Make Money?
Net Profit Margin
For every $100 in sales, Donnelley Financial Solutions, Inc. keeps $4.22 as profit after all expenses.
Operating Margin
Core operations generate 19.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.83 in profit for every $100 of shareholder equity.
ROA
Donnelley Financial Solutions, Inc. generates $4.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Donnelley Financial Solutions, Inc. produces operating cash flow of $163.16M, showing steady but balanced cash generation.
Free Cash Flow
Donnelley Financial Solutions, Inc. generates strong free cash flow of $105.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.98 in free cash annually.
FCF Yield
DFIN converts 8.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
21.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How DFIN Stacks Against Its Sector Peers
| Metric | DFIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.10 | 18.73 | Worse (Expensive) |
| ROE | 7.83% | 847.00% | Weak |
| Net Margin | 4.22% | 2562.00% | Weak |
| Debt/Equity | 0.48 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 1.06 | 674.76 | Neutral |
| ROA | 4.05% | -21692.00% (disorted) | Weak |
DFIN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Donnelley Financial Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.39%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
186.98%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
266.63%
Industry Style: Value, Dividend, Cyclical
High Growth