This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TheStreet Ratings Top 10 Rating Changes

Rating Change #9

R.R. Donnelley & Sons Company (RRD) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • RRD's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 74.83% to $474.50 million when compared to the same quarter last year. In addition, DONNELLEY (R R) & SONS CO has also vastly surpassed the industry average cash flow growth rate of -2.80%.
  • DONNELLEY (R R) & SONS CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, DONNELLEY (R R) & SONS CO swung to a loss, reporting -$0.73 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($1.83 versus -$0.73).
  • The gross profit margin for DONNELLEY (R R) & SONS CO is rather low; currently it is at 22.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -12.00% is significantly below that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income has significantly decreased by 1310.0% when compared to the same quarter one year ago, falling from $27.00 million to -$326.70 million.
.

R.R. Donnelley & Sons Company provides pre-media, printing, logistics, and business process outsourcing products and services to private and public sectors worldwide. The company has a P/E ratio of 11.5, above the average diversified services industry P/E ratio of 10.3 and below the S&P 500 P/E ratio of 17.7. R.R. Donnelley & Sons has a market cap of $2.29 billion and is part of the services sector and diversified services industry. Shares are down 9.8% year to date as of the close of trading on Thursday.

You can view the full R.R. Donnelley & Sons Ratings Report or get investment ideas from our investment research center.

2 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PXP $0.00 0.00%
AEG $7.73 -0.77%
CHK $14.54 0.00%
MBT $11.97 1.53%
KGC $2.30 -0.43%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs