Donnelley Financial Solutions, Inc.

Consumer Discretionary
Other Consumer Services
www.dfinsolutions.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.76B
PE 18
Debt $124.60M
Cash $33.60M
EV $1.85B
FCF $119.90M

Earnings

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Sales & Net Margins

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Earnings	$96.70M
EBIT	$137.10M
ROE	22%
ROA	16%
FCF	$119.90M
Equity	$444.50M
Growth Stability	-64%
PE	18.22
PEG	0.45
PB	3.96
P/FCF	14.7
P/S	2.2
Price/Cash	0.02
Debt/Equity	0.28
Debt/FCF	1.04
Net Margins	14%
Gross Margins	61%
Op. Margins	17%
Earnings CAGR	16%
Sales Growth YoY	-0%
Sales Growth QoQ	-26%
Sales CAGR	-1%
FCF CAGR	15%
Equity CAGR	5%
Earnings Stability	0.18
Earnings Growth YoY	-52%
Earnings Growth QoQ	-80%

Earnings CAGR 5Y	40%
Sales CAGR 5Y	-3%
FCF CAGR 5Y	15%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	-8%
Sales CAGR 3Y	-8%
FCF CAGR 3Y	-12%
Equity CAGR 3Y	10%
Market Cap	$1.76B
Revenue	$802.10M
Assets	$843.60M
Total Debt	$124.60M
Cash	$33.60M
Shares Outstanding	28.9M
EV	1.85B
Earnings Score	10%
Moat Score	95%
Safety Score	65%
Final Score	57%
Working Capital	30.2M
Current Ratio	1.15
Gross Profit	$492.90M
Shares Growth 3y	-4%
Equity Growth QoQ	1%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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Donnelley Financial Solutions Inc is a global risk and compliance solutions company. The company provides regulatory filing and deal solutions via 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. The company operates in four segments: Capital Markets - Software Solutions, Capital Markets - Compliance and Communications Management, Investment Companies - Software Solutions and Investment Companies - Compliance and Communications Management. Its geographical segments are the United States( US), Europe, Asia, Canada, and others, of which the US accounts for the vast majority of its total revenue.

SEC Filings

Direct access to Donnelley Financial Solutions, Inc. (DFIN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Donnelley Financial Solutions, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Donnelley Financial Solutions, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 16%

Stability 18%

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Donnelley Financial Solutions, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Donnelley Financial Solutions, Inc..

Years

Calculation mode

= $3.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$120M	$138M	$159M	$183M	$211M	$243M	$280M	$323M	$372M	$428M	$494M	$4.9B
DCF		$126M	$132M	$138M	$144M	$151M	$158M	$166M	$173M	$182M	$190M	$1.9B
Value	$3.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	5%	10%	6%	1%	8%	4%	-3%	15%	12%	10%	14%
ROA	-	-	11%	11%	16%	10%	0%	25%	18%	14%	16%
ROE	-	-	53%	6%	33%	14%	-10%	39%	31%	20%	22%

Good Net Margins (13.76%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	7.52	7.39	12.76	30.52	1.87	0.9	1.76	2	1.04
Debt over Equity	-	0.03	5.4	3.15	1.65	1.1	0.93	0.33	0.51	0.31	0.28
Growth Stability	-	-	-	13%	100%	79%	-64%	100%	100%	100%	-64%

Good Debt/FCF ratio (1.04)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.28)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-64%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-3%	-6%	2%	-4%	-9%	2%	11%	-16%	-4%	-3%
Earnings YoY growth	-	82%	-43%	-84%	659%	-49%	-169%	-663%	-30%	-20%	40%
Equity YoY growth	-	77%	-82%	34%	51%	19%	-8%	52%	-13%	22%	12%
FCF YoY growth	-	-3%	-15%	-20%	-54%	-67%	1K%	12%	-30%	-35%	15%