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Fundamental analysis: Donnelley Financial Solutions, Inc. (DFIN)

Awarener score: 6.8

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

• Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
• Donnelley Financial Solutions, Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 7.2

• DFIN profit margins -on goods and services sold- are usually good. They stand somewhat better than rival companies.
• Business profit on sales tends to be very good. It's similar to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually good. They remain rather normal in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still slightly worse than similar companies.
• Profits -before income taxes- are usually good considering total sales, and remain almost average when measured against rivals.
• Total net profit tends to be good when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 7.9

• Donnelley Financial Solutions, Inc. profit -on goods and services sold- has been growing at a low pace. It's been in a weak position compared to competitors.
• In recent years, earnings -on operations- have been growing at an excellent step, which has been somewhat better than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be a slight improvement compared to similar stocks.
• In past years, profits -before income taxes- grew at an extremely fast speed. It was top-notch against rivals.
• In the previous years, growth trend on total net profit has been excellent, and great when measured against peer companies.
• Earnings per share have grown at an extremely fast rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 2.0

• DFIN had to pay too much income taxes in relation to profits made in the past years. It's been worse than most peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.5

• Donnelley Financial Solutions, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
• The company normally gets huge proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
• There's usually excellent profitability -in relation to owned resources-. It ranks encouraging in relation to competitors.
• In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 5.8

• DFIN usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands top tier when measured against rival firms.
• The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is below average when measured against industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
• The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks below average when measured against competitors.

Balance Sheet score: 5.1

• Donnelley Financial Solutions, Inc. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
• The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a very weak position compared to similar firms.
• Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains worse than most rival firms.
• Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
• For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's in a weak position compared to peer firms.
• For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
• Usually, sales are on somewhat less than three months credit. It still ranks below average when measured against peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes higher than three months from the purchase to charging customers. It happens to be slightly worse than peers.
• On average pays suppliers after a month and a half from the purchase. It ranks similar to industry peers.
• The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's lacking compared to similar companies.
• Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands slightly better than rival firms.
• Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
• Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
• Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 6.5

• Donnelley Financial Solutions, Inc. looks cheap in relation to profits and financial position. It happens to be similar to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
• In the past twelve months, the company generated some good free funds in relation to the stock price, which stands slightly worse than similar companies.
• The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still below average when measured against industry firms.
• In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up rather normal in relation to peer ventures.
• The company is somewhat indebted, loan repayment needs to be taken into account. It looks mediocre against similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks more than average in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
• The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
• In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 6.1

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Awarener score: 6.8

Conclusion

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