Donnelley Financial Solutions (DFIN) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 241.41K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.13
• Revenue Growth: -5.93%
• EPS Growth: -19.77%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 98
• Industry: Financial - Capital Markets
• EPS (TTM): 1.49
• Shares Outstanding: 27,494,778
• 10 Day Avg. Volume: 334,225
• 30 Day Avg. Volume: 241,406
• 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: 1.34
• Enterprise Value/Revenue: 2.53
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 9.71
• 1Y Price Target: $73.00
• Price Target Upside: 40.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $55.00 ▲(5.93% Upside)

Donnelley Financial Solutions' overall stock score is driven by its strong financial performance and positive earnings call, which highlight profitability and strategic growth in software solutions. However, technical analysis indicates bearish momentum, and valuation metrics are moderate. The new share repurchase program is a positive corporate event, enhancing shareholder value.

Positive Factors

Software Revenue Growth

Software revenue grew at a healthy pace organically and now makes up over 40% of the company's revenue.

Stock Buyback

The company has stepped up its buyback program, repurchasing approximately 5% of its outstanding shares.

Valuation

The shares are trading at an attractive FY26 P/E multiple, presenting a favorable risk-reward scenario for small-cap investors.

Negative Factors

Capital Markets Activity

DFIN's fourth-quarter results missed expectations on both the top and bottom line due to soft capital markets activity.

Capital Markets Outlook

There is uncertainty in short-term capital markets volumes due to ongoing market volatility.

Revenue Expectations

DFIN's revenue for the second quarter fell below expectations due to decreased print revenue.

Donnelley Financial Solutions Business Overview & Revenue Model

Company Description

Donnelley Financial Solutions, Inc. operates as a risk and compliance solutions company worldwide. The company operates through four segments: Capital Markets – Software Solutions (CM-SS), Capital Markets – Compliance and Communications Management (CM-CCM), Investment Companies – Software Solutions (IC-SS), and Investment Companies – Compliance and Communications Management (IC-CCM). The CM-SS segment provides Venue, ActiveDisclosure, eBrevia, and other solutions to public and private companies to manage public and private transaction processes, extract data, and analyze contracts; collaborate; and tag, validate, and file SEC documents. The CM-CCM segment offers tech-enabled services and print and distribution solutions to public and private companies for deal solutions and SEC compliance requirements. The IC-SS segment provides clients with the Arc Suite platform that contains a comprehensive suite of cloud-based solutions and services that enable storage and management of compliance and regulatory information in a self-service and central repository for accessing, assembling, editing, translating, rendering, and submitting documents to regulators. The IC-CCM segment offers clients with tech-enabled solutions for creating and filing regulatory communications and solutions for investor communications, as well as XBRL-formatted filings pursuant to the Investment Act, through the SEC EDGAR system. This segment also provides turnkey proxy services, including discovery, planning and implementation, print and mail management, solicitation, tabulation services, shareholder meeting review, and expert support. Donnelley Financial Solutions, Inc. was founded in 1983 and is headquartered in Chicago, Illinois.

How the Company Makes Money

DFIN makes money through a combination of subscription fees, transaction-based revenues, and professional services. The company offers cloud-based software solutions that clients pay for on a subscription basis, which provides a steady stream of recurring revenue. Additionally, DFIN generates income from transaction fees related to capital markets activities, such as initial public offerings (IPOs) and mergers and acquisitions (M&A). Professional services, including consulting and implementation support, also contribute to the company's earnings. DFIN's strategic partnerships with financial institutions and technology providers enhance its product offerings and expand its market reach, further driving revenue growth.

Donnelley Financial Solutions Financial Statement Overview

Summary

Donnelley Financial Solutions presents a solid financial profile with strong profitability and effective leverage management. High profit margins and a balanced debt structure are positive, but declining revenue growth and negative free cash flow growth require attention.

Income Statement

Donnelley Financial Solutions demonstrated strong profitability with a gross profit margin of 68% TTM, which improved from the previous year. Net profit margin stood at 11.6% TTM, indicating stable profit generation. However, the revenue growth has been declining with a 1.2% decrease TTM. The EBIT and EBITDA margins, at 11.9% and 26.2% respectively, reflect healthy operational efficiency despite the revenue downturn.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.49, suggesting a balanced leverage. Return on equity is strong at 21.5% TTM, showcasing effective use of shareholders' equity. However, the equity ratio is at 49.2%, indicating a moderate reliance on liabilities to finance assets. Overall, the balance sheet reflects financial stability with room for improvement in asset management.

Cash Flow

Operating cash flow to net income ratio is robust at 1.79, indicating efficient cash generation from operations. Free cash flow to net income ratio is 1.05, suggesting that most of the earnings translate into free cash flow. However, the free cash flow growth rate has been negative, necessitating improved cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	755.00M	781.90M	797.20M	833.60M	993.30M	894.50M
Gross Profit	439.20M	484.00M	463.90M	463.40M	580.20M	398.50M
EBITDA	196.60M	209.70M	192.00M	212.00M	290.50M	82.20M
Net Income	82.10M	92.40M	82.20M	102.50M	145.90M	-25.90M
Balance Sheet
Total Assets	874.70M	841.60M	806.90M	828.30M	883.30M	865.60M
Cash, Cash Equivalents and Short-Term Investments	33.80M	57.30M	23.10M	34.20M	54.50M	73.60M
Total Debt	203.90M	141.40M	150.60M	213.90M	181.30M	301.30M
Total Liabilities	442.60M	405.50M	404.70M	498.80M	506.30M	617.80M
Stockholders Equity	432.10M	436.10M	402.20M	329.50M	377.00M	247.80M
Cash Flow
Free Cash Flow	109.30M	105.20M	62.20M	96.00M	137.70M	123.10M
Operating Cash Flow	173.50M	171.10M	124.00M	150.20M	180.00M	154.20M
Investing Cash Flow	-64.10M	-53.30M	-51.30M	-50.90M	-45.00M	-19.80M
Financing Cash Flow	-111.10M	-82.10M	-84.60M	-121.10M	-154.90M	-77.50M

Donnelley Financial Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 51.92 is below the 20-day moving average (MA) of 59.01, below the 50-day MA of 59.38, and below the 200-day MA of 56.39, indicating a bearish trend. The MACD of -2.43 indicates Positive momentum. The RSI at 31.40 is Neutral, neither overbought nor oversold. The STOCH value of 13.62 is Positive, 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
MC	79 Outperform	$5.65B	27.59	45.36%	3.64%	42.85%	1398.33%
PJT	76 Outperform	$6.15B	30.32	106.47%	0.56%	18.40%	54.77%
SF	75 Outperform	$11.41B	21.59	11.11%	1.58%	8.75%	10.32%
LPLA	74 Outperform	$30.30B	25.90	29.46%	0.32%	29.23%	13.45%
XP	74 Outperform	$9.13B	11.08	21.71%	3.75%	-2.79%	1.33%
DFIN	65 Neutral	$1.43B	18.33	18.80%	―	-5.93%	-19.77%
Sector *	63 Neutral	€2.31B	27.88	4.40%	2.79%	4.53%	-66.68%

Donnelley Financial Solutions Corporate Events

Donnelley Financial Solutions Announces New Share Repurchase Program

On May 14, 2025, Donnelley Financial Solutions held its Annual Meeting of Stockholders, where all nominated directors were elected, an advisory resolution on executive compensation was approved, an amendment to the 2016 Performance Incentive Plan was passed, and Deloitte & Touche LLP was ratified as the independent auditor for fiscal year 2025. Following the meeting, on May 15, 2025, the Board authorized a new share repurchase program of up to $150 million, effective through December 31, 2026, replacing the previous program with $15 million remaining. This initiative reflects the company’s strategic approach to managing its capital and enhancing shareholder value.

The most recent analyst rating on (DFIN) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Donnelley Financial Solutions stock, see the DFIN Stock Forecast page.