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Donnelley Financial Solutions (DFIN)
NYSE:DFIN
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Donnelley Financial Solutions
(NYSE:DFIN)
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Rating:64Neutral
Price Target:
$48.00
▼(-11.80% Downside)
Donnelley Financial Solutions' overall stock score reflects a mix of strengths and challenges. The most significant factor is the company's strategic shift towards software solutions, which shows promising growth and improved profitability. However, declining revenue in traditional segments and bearish technical indicators weigh on the score. The valuation is moderate, and while the earnings call provided positive insights into software growth, challenges in other areas persist. The absence of a dividend yield also limits appeal for some investors.
Donnelley Financial Solutions (DFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend YieldN/A
Average Volume (3M)279.72K
Price to Earnings (P/E)45.5
Beta (1Y)1.20
Revenue Growth-6.40%
EPS Growth-66.39%
CountryUS
Employees1,800
SectorN/A
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.86
Shares Outstanding26,537,083
10 Day Avg. Volume291,627
30 Day Avg. Volume279,723
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)4.20
Price to Sales (P/S)2.34
P/FCF Ratio17.41
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$72.00Price Target Upside32.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Donnelley Financial Solutions Business Overview & Revenue Model
Company DescriptionDonnelley Financial Solutions (DFIN) is a leading provider of risk and compliance solutions, serving a diverse range of sectors including financial services, healthcare, and technology. The company specializes in offering comprehensive software and services that streamline regulatory reporting, enhance investor communications, and facilitate financial disclosures. Key products include its cloud-based platform designed for managing complex financial documents and a suite of services that cover everything from EDGAR filing to ESG reporting, helping organizations meet their compliance obligations efficiently.
How the Company Makes MoneyDFIN generates revenue primarily through a combination of software-as-a-service (SaaS) subscriptions and service fees associated with its compliance and regulatory offerings. Key revenue streams include fees from clients for access to its cloud-based software solutions, as well as fees for professional services related to regulatory filing and compliance consulting. The company also benefits from strategic partnerships with financial institutions and regulatory bodies, enhancing its service offerings and broadening its client base. Additionally, DFIN's focus on sectors with stringent regulatory requirements, such as finance and healthcare, positions it to capture ongoing demand for compliance services, thereby contributing to its earnings.
Donnelley Financial Solutions Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
Donnelley Financial Solutions showed strong growth in its software solutions and significant improvements in adjusted EBITDA. However, the impact of the U.S. government shutdown and a notable decline in certain revenue streams created challenges.Q3-2025 Updates
Positive Updates
Strong Software Solutions Growth
Donnelley Financial Solutions reported a year-over-year net sales growth of 10.3% in its Software Solutions segment, with software solutions sales representing approximately 52% of total sales in the quarter.
ActiveDisclosure Performance
ActiveDisclosure delivered third quarter net sales growth of approximately 26%, marking the third consecutive quarter of double-digit sales growth.
Adjusted EBITDA Increase
The company reported a year-over-year increase in adjusted EBITDA by 14.6%, reaching $49.5 million with an adjusted EBITDA margin of 28.2%, an increase of approximately 410 basis points from the prior year.
Launch of New Venue and ArcFlex
Donnelley Financial Solutions launched a redesigned version of its Venue Virtual Data Room and introduced ArcFlex, a new module within Arc Suite, enhancing its product portfolio.
Negative Updates
Government Shutdown Impact
The U.S. government shutdown affected SEC operations, delaying capital markets deal activity and impacting IPOs and other transactions.
Decline in Capital Markets Transactional Revenue
Event-driven transactional revenue in the Capital Markets segment declined by $4.4 million year-over-year, mainly due to lower volume for foreign issuer transactions.
Pension Plan Settlement Charge
Donnelley Financial Solutions recognized a non-cash pretax settlement charge of $82.8 million, resulting in a negative EPS impact of $2.20 per diluted share, due to the termination of their primary defined benefit pension plan.
Decrease in Compliance & Communications Management Sales
The Compliance & Communications Management segment saw a decrease of $6.3 million or 9.9% in net sales from the previous year, driven by lower transactional revenue and compliance volume.
Company Guidance
During the Donnelley Financial Solutions Third Quarter 2025 Earnings Conference Call, several key metrics and insights were shared. The company reported a 10.3% year-over-year increase in software solutions net sales, contributing to software solutions making up 52% of total sales for the quarter. Adjusted EBITDA grew significantly by 14.6% to $49.5 million, with an adjusted EBITDA margin expansion of 410 basis points to 28.2%. The SaaS offerings experienced double-digit growth, and recurring compliance software products like ActiveDisclosure and Arc Suite saw sales growth of approximately 16%. However, there was an 8% reduction in event-driven transactional revenue due to a soft capital markets environment. Total net sales for the third quarter were $175.3 million, a slight decrease of 2.3% from the previous year, influenced by declining compliance and communications management revenue. Despite these challenges, the company anticipates a positive mix shift in sales, aiming for 60% of total sales to come from software solutions by 2028. The fourth quarter guidance projected consolidated net sales between $150 million and $160 million, with an expected adjusted EBITDA margin increase of approximately 300 basis points compared to last year's fourth quarter.Donnelley Financial Solutions Financial Statement Overview
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Donnelley Financial Solutions Technical Analysis
Neutral
54.42
Price Trends
46.90
Positive
50.41
Negative
51.97
Negative
Market Momentum
-0.09
Negative
55.29
Neutral
56.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFIN, the sentiment is Neutral. The current price of 54.42 is above the 20-day moving average (MA) of 46.17, above the 50-day MA of 46.90, and above the 200-day MA of 51.97, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 56.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DFIN.
Donnelley Financial Solutions Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
73 Outperform | $772.19M | 9.92 | 9.64% | 0.99% | 12.52% | 16.53% | |
73 Outperform | $2.83B | 13.42 | ― | 1.47% | ― | ― | |
72 Outperform | $149.18M | 20.27 | 8.43% | ― | 8.47% | -32.22% | |
68 Neutral | $1.98B | 13.36 | 22.84% | ― | 65.74% | 345.40% | |
64 Neutral | $1.27B | 45.45 | 7.49% | ― | -6.40% | -66.39% | |
46 Neutral | $1.66B | 28.45 | ― | 1.62% | -12.44% | ― |
* Sector Average
DFIN
Donnelley Financial Solutions
47.68
-10.51
-18.06%
OPY
Oppenheimer Holdings
74.10
11.16
17.73%
SIEB
Siebert Financial
3.69
0.42
12.84%
TIGR
Up Fintech Holding
11.12
4.49
67.72%
PWP
Perella Weinberg Partners
18.42
-4.75
-20.50%
MRX
Marex Group plc
39.68
7.54
23.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.