Donnelley Financial Solutions (DFIN) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: N/A
• Average Volume (3M): 279.72K
• Price to Earnings (P/E): 43.1
• Beta (1Y): 1.19
• Revenue Growth: -6.40%
• EPS Growth: -66.39%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 0.86
• Shares Outstanding: 26,537,083
• 10 Day Avg. Volume: 291,627
• 30 Day Avg. Volume: 279,723
• PEG Ratio: 1.59
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 17.41
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $72.00
• Price Target Upside: 32.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• 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.

Positive Factors

Software Solutions Growth

The significant growth in software solutions indicates a successful strategic shift, enhancing profitability and market position.

Product Innovation

New product launches like ArcFlex and Venue Virtual Data Room strengthen DFIN's competitive edge and expand its service offerings.

Adjusted EBITDA Growth

The increase in adjusted EBITDA reflects improved operational efficiency and profitability, supporting long-term financial health.

Negative Factors

Declining Revenue

The decline in total net sales highlights challenges in traditional segments, impacting overall revenue growth and market competitiveness.

Pension Plan Settlement Charge

The significant pension plan settlement charge affects financial flexibility and may constrain future investment capabilities.

Decline in Compliance & Communications Management Sales

The decline in this segment indicates pressure on traditional revenue streams, necessitating a focus on innovation and diversification.

Donnelley Financial Solutions Business Overview & Revenue Model

Company Description

Donnelley Financial Solutions (DFIN) is a leading provider of regulatory compliance and financial reporting services based in the United States. The company specializes in delivering cutting-edge technology solutions and comprehensive services for public and private companies, investment firms, and other organizations that require assistance with financial disclosures, data analytics, and document management. DFIN operates primarily in the financial services sector, offering products such as EDGAR filing services, risk and compliance solutions, and investor communications services.

How the Company Makes Money

DFIN generates revenue through a diversified model that includes several key streams. Primarily, the company earns money by providing regulatory filing services, where clients pay for assistance in preparing and submitting documents to regulatory bodies like the SEC. Another significant revenue source comes from its SaaS offerings, which include advanced technology platforms that help clients manage their financial data and reporting needs more efficiently. DFIN also generates income from its advisory services, where it provides strategic consulting related to compliance, risk management, and governance. Additionally, partnerships with financial institutions and technology providers enhance its offerings and contribute to revenue growth by expanding its client base and service capabilities.

Donnelley Financial Solutions Financial Statement Overview

Summary

Donnelley Financial Solutions faces challenges with declining revenue and profitability margins, impacting its income statement. The balance sheet shows improved leverage but reduced return on equity. Cash flow metrics reveal efficient cash generation but highlight concerns with declining free cash flow growth. Overall, the company needs to address revenue and profitability pressures while maintaining its improved leverage position.

Income Statement

Donnelley Financial Solutions has shown a declining revenue trend with a significant drop in the TTM period. The gross profit margin has decreased substantially from previous years, indicating pressure on cost management. However, the company maintains a positive net profit margin, albeit lower than previous years, suggesting some profitability despite revenue challenges.

Balance Sheet

The company has improved its debt-to-equity ratio over the years, indicating better leverage management. The return on equity has decreased in the TTM period, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Free cash flow growth has been negative in recent periods, highlighting potential liquidity concerns. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. However, the decline in free cash flow growth is a risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	750.80M	781.90M	797.20M	833.60M	993.30M	894.50M
Gross Profit	455.60M	484.00M	463.90M	463.40M	580.20M	398.50M
EBITDA	120.30M	209.70M	192.00M	212.00M	275.20M	82.20M
Net Income	32.50M	92.40M	82.20M	102.50M	145.90M	-25.90M
Balance Sheet
Total Assets	816.30M	857.00M	806.90M	828.30M	883.30M	898.70M
Cash, Cash Equivalents and Short-Term Investments	22.70M	57.30M	23.10M	34.20M	54.50M	73.60M
Total Debt	162.70M	144.40M	153.10M	215.90M	187.20M	301.30M
Total Liabilities	393.20M	420.90M	404.70M	498.80M	506.30M	650.90M
Stockholders Equity	423.10M	436.10M	402.20M	329.50M	377.00M	247.80M
Cash Flow
Free Cash Flow	101.20M	105.20M	62.20M	96.00M	137.70M	123.10M
Operating Cash Flow	161.50M	171.10M	124.00M	150.20M	180.00M	154.20M
Investing Cash Flow	-60.20M	-53.30M	-51.30M	-50.90M	-45.00M	-19.80M
Financing Cash Flow	-111.90M	-82.10M	-84.60M	-121.10M	-154.90M	-77.50M

Donnelley Financial Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFIN, the sentiment is Negative. The current price of 54.42 is above the 20-day moving average (MA) of 47.55, above the 50-day MA of 50.64, and above the 200-day MA of 52.94, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 20.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DFIN.

Donnelley Financial Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRX	73 Outperform	$2.19B	10.39	―	1.79%	―	―
TIGR	65 Neutral	$1.44B	12.44	18.77%	―	58.88%	305.98%
SIEB	64 Neutral	$111.98M	15.82	8.43%	―	8.47%	-32.22%
DFIN	64 Neutral	$1.20B	43.06	7.49%	―	-6.40%	-66.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OPY	58 Neutral	$690.07M	8.60	9.64%	1.09%	12.52%	16.53%
PWP	46 Neutral	$1.66B	23.13	―	1.62%	-12.44%	―

Donnelley Financial Solutions Corporate Events

Donnelley Financial Solutions Reports Mixed Q3 2025 Results

Donnelley Financial Solutions, Inc. (DFIN) is a leading global provider of compliance and regulatory software and services, specializing in investment company regulatory compliance, capital markets transactions, and financial reporting solutions.

Donnelley Financial Solutions’ Earnings Call Highlights Growth and Challenges

Donnelley Financial Solutions’ recent earnings call revealed a mixed sentiment, with strong growth in its software solutions and a notable increase in adjusted EBITDA. However, challenges arose from the U.S. government shutdown and a decline in specific revenue streams, impacting overall performance.

Donnelley Financial Solutions’ Earnings Call: Mixed Sentiments and Strategic Shifts

Donnelley Financial Solutions, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. While the company celebrated significant achievements in its software solutions net sales and robust adjusted EBITDA margins, these positive outcomes were tempered by declines in total net sales, a challenging capital markets environment, and reduced print and distribution revenue. Despite these hurdles, the company remains optimistic about its strategic transformation and long-term growth prospects.

Donnelley Financial Solutions Reports Q2 2025 Results

Donnelley Financial Solutions, Inc. (DFIN) is a global provider of software and technology-enabled financial regulatory and compliance solutions, offering expertise and analytics for business and investment lifecycles. In its second-quarter 2025 earnings report, DFIN highlighted record software solutions net sales of $92.2 million, a 7.7% increase from the previous year, with software solutions now comprising 42.3% of total net sales. Despite a 10.1% decline in overall net sales to $218.1 million, driven by reduced print and distribution volumes, the company achieved net earnings of $36.1 million, or $1.28 per diluted share. Key financial metrics included an adjusted EBITDA of $76.3 million and a margin of 35.0%, alongside a notable increase in operating and free cash flow. DFIN’s strategic focus on software solutions is evident, with recurring compliance products like ActiveDisclosure and Arc Suite driving growth. The company also repurchased 787,152 shares for $34.3 million and launched a new $150 million stock repurchase program. Looking ahead, DFIN remains committed to enhancing its recurring sales mix and disciplined capital allocation, aiming for sustainable long-term value amidst improving market conditions.