-0.12 | -0.90%
DONNELLEY (R R) & SONS CO's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DONNELLEY (R R) & SONS CO has average liquidity. Currently, the Quick Ratio is 1.23 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 96.54% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 2538.5 | 2524.9 |
| EBITDA ($mil) | 277.1 | 296.7 |
| EBIT ($mil) | 163.5 | 171.7 |
| Net Income ($mil) | 27.1 | 37.4 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 302.9 | 415.0 |
| Total Assets ($mil) | 7006.8 | 8212.8 |
| Total Debt ($mil) | 3533.8 | 3755.3 |
| Equity ($mil) | 37.1 | 1072.4 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 21.99 | 22.97 |
| EBITDA Margin | 10.91 | 11.75 |
| Operating Margin | 6.44 | 6.8 |
| Sales Turnover | 1.46 | 1.28 |
| Return on Assets | -9.44 | -1.45 |
| Return on Equity | -1783.55 | -11.1 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.61 | 1.43 |
| Debt/Capital | 0.99 | 0.78 |
| Interest Expense | 62.8 | 60.7 |
| Interest Coverage | 2.6 | 2.83 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 181.4 | 180.3 |
| Div / share | 0.26 | 0.26 |
| EPS | 0.15 | 0.21 |
| Book value / share | 0.2 | 5.95 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2321325.0 | 3762138.0 |
HOLD. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 62.10 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 5.07. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, DONNELLEY (R R) & SONS CO proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RRD NM | Peers 28.84 | RRD 3.53 | Peers 12.68 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. RRD's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RRD is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| RRD 7.89 | Peers 21.13 | RRD NA | Peers 1.75 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. RRD is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| RRD 62.10 | Peers 5.07 | RRD -439.70 | Peers 1.38 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RRD is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, RRD is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| RRD 0.23 | Peers 1.97 | RRD -3.01 | Peers 2.52 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RRD is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. RRD significantly trails its peers on the basis of sales growth |
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