R.R.Donnelley & Sons Co

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RRD : NYSE : Services
$12.05 -0.03 | -0.25%
Today's Range: 11.95 - 12.2
Avg. Daily Volume: 1612100.0
05/23/17 - 4:00 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
Interest Expense68.470.3
Interest Coverage2.672.7

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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