Donnelley Financial Return On Equity vs. Current Valuation
| DFIN Stock | USD 60.25 0.40 0.67% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.20437593 | Current Value 0.24 | Quarterly Volatility 0.14560767 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.35 | 0.5819 |
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| Operating Profit Margin | 0.1 | 0.138 |
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For Donnelley Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Donnelley Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Donnelley Financial Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Donnelley Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Donnelley Financial Solutions over time as well as its relative position and ranking within its peers.
Donnelley |
Donnelley Financial's Revenue Breakdown by Earning Segment
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Is Financial Exchanges & Data space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Donnelley Financial. If investors know Donnelley will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Donnelley Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.52) | Earnings Share 3.19 | Revenue Per Share 27.446 | Quarterly Revenue Growth (0) | Return On Assets 0.1038 |
The market value of Donnelley Financial is measured differently than its book value, which is the value of Donnelley that is recorded on the company's balance sheet. Investors also form their own opinion of Donnelley Financial's value that differs from its market value or its book value, called intrinsic value, which is Donnelley Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Donnelley Financial's market value can be influenced by many factors that don't directly affect Donnelley Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Donnelley Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Donnelley Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Donnelley Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Donnelley Financial Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Donnelley Financial's current stock value. Our valuation model uses many indicators to compare Donnelley Financial value to that of its competitors to determine the firm's financial worth. Donnelley Financial Solutions is one of the top stocks in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about 7,924,533,586 of Current Valuation per Return On Equity. At this time, Donnelley Financial's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Donnelley Financial's earnings, one of the primary drivers of an investment's value.Donnelley Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Donnelley Financial |
| = | 0.23 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Donnelley Financial |
| = | 1.85 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Donnelley Current Valuation vs Competition
Donnelley Financial Solutions is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 58.89 Billion. Donnelley Financial holds roughly 1.85 Billion in current valuation claiming about 3% of equities under Financials industry.
Donnelley Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Donnelley Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Donnelley Financial will eventually generate negative long term returns. The profitability progress is the general direction of Donnelley Financial's change in net profit over the period of time. It can combine multiple indicators of Donnelley Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -77.9 M | -81.8 M | |
| Operating Income | 110 M | 138.6 M | |
| Income Before Tax | 102 M | 83.6 M | |
| Total Other Income Expense Net | -8 M | -8.4 M | |
| Net Income | 82.2 M | 74.3 M | |
| Income Tax Expense | 19.8 M | 29.6 M | |
| Net Income From Continuing Ops | 82.2 M | 71.1 M | |
| Net Income Applicable To Common Shares | 117.9 M | 69 M | |
| Interest Income | 2.1 M | 2 M | |
| Net Interest Income | -15.8 M | -16.6 M | |
| Non Operating Income Net Other | 3.1 M | 5.4 M | |
| Change To Netincome | 23.9 M | 14.9 M | |
| Net Income Per Share | 2.81 | 1.68 | |
| Income Quality | 1.51 | 1.66 | |
| Net Income Per E B T | 0.81 | 0.57 |
Donnelley Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Donnelley Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Donnelley Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Donnelley Financial's important profitability drivers and their relationship over time.
Use Donnelley Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Donnelley Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Donnelley Financial will appreciate offsetting losses from the drop in the long position's value.Donnelley Financial Pair Trading
Donnelley Financial Solutions Pair Trading Analysis
The ability to find closely correlated positions to Donnelley Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Donnelley Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Donnelley Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Donnelley Financial Solutions to buy it.
The correlation of Donnelley Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Donnelley Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Donnelley Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Donnelley Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Donnelley Financial position
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To fully project Donnelley Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Donnelley Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Donnelley Financial's income statement, its balance sheet, and the statement of cash flows.