R.R.Donnelley & Sons Co

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RRD : NYSE : Services
$11.72 -0.04 | -0.34%
Today's Range: 11.69 - 11.99
Avg. Daily Volume: 1249500.0
03/24/17 - 4:02 PM ET

Financial Analysis


DONNELLEY (R R) & SONS CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. DONNELLEY (R R) & SONS CO has average liquidity. Currently, the Quick Ratio is 1.13 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.

During the same period, stockholders' equity ("net worth") has decreased by 19.18% 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.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)2772.42828.0
EBITDA ($mil)283.9305.2
EBIT ($mil)182.4189.9
Net Income ($mil)-7.114.3


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)411.8257.3
Total Assets ($mil)7472.57470.6
Total Debt ($mil)3890.93676.3
Equity ($mil)524.4648.9


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin21.3322.16
EBITDA Margin10.2410.79
Operating Margin6.586.71
Sales Turnover1.481.52
Return on Assets1.191.33
Return on Equity17.015.34
Debt Q3 FY16 Q3 FY15
Current Ratio1.491.3
Debt/Capital0.880.85
Interest Expense68.470.3
Interest Coverage2.672.7


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)69.869.57
Div / share0.780.78
EPS-0.090.21
Book value / share7.519.33
Institutional Own % n/a n/a
Avg Daily Volume973857.02420791.0

Valuation


HOLD. DONNELLEY (R R) & SONS CO's P/E ratio indicates a significant discount compared to an average of 33.67 for the Commercial Services & Supplies industry and a significant discount compared to the S&P 500 average of 26.53. To use another comparison, its price-to-book ratio of 2.43 indicates a discount versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 4.70. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, DONNELLEY (R R) & SONS CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RRD 14.16 Peers 33.67   RRD 2.79 Peers 14.32

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RRD is trading at a significant discount to its peers.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RRD 17.33 Peers 29.40   RRD NM Peers 1.37

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

RRD is trading at a valuation on par with 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.

RRD's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RRD 2.43 Peers 4.70   RRD -12.25 Peers 67.66

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RRD is trading at a significant discount 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RRD 0.12 Peers 2.44   RRD -2.67 Peers 10.44

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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