R.R. Donnelley & Sons Company assists customers in developing and executing multichannel communication strategies that engage audiences, reduce costs, drive revenues and increase compliance. The company was founded in 1864 and is based in Chicago, Illinois.
RRD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for RR Donnelley & Sons Co. To summarize, we found that RR Donnelley & Sons Co ranked in the 36th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for RR Donnelley & Sons Co ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 0.45 -- which is good for besting just 23.72% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.43 years comes in at -0.24%; that's greater than merely 6.13% of US stocks we're applying DCF forecasting to.
4% of the company's capital comes from equity, which is greater than just 1.66% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RRD, try ZNH, CECE, NSSC, PATI, and XYL.
R. R. Donnelley & Sons (RRD) has reached a deal to sell a business unit, much-needed given the troubled state of the business and its finances. The company reached a second deal this year with TFI International to sell logistics assets and while the proceeds are much-needed and welcomed, the...
The Value Investor on Seeking Alpha | September 28, 2020
TFI International (NYSE: TFII ) will buy U.S. third-party logistics provider DLS Worldwide from RR Donnelley & Sons (NYSE: RRD ) for $225 million in one of the Canadian company's largest acquisitions in recent years. TFI announced the acquisition Tuesday. It represents a major move by the Montreal-based company to scale its U.S.-based logistics business. Based in the Chicago suburbs, DLS Worldwide generated $550 million in revenue during a recent 12-month period, according to TFI. Once the acquisition closes, TFI said it expects DLS will generate $22.5 million in operating income in the first four quarters. To put the acquisition in perspective, TFI's logistics segment generated about $780 million in revenue … Full story available on Benzinga.com
R.R. Donnelley & Sons Company (RRD) (NYSE: RRD), a leading global provider of marketing and business communications, today announced that it has unified its Content and Creative Services (CCS) and Global Outsourcing (GO) capabilities to expand and streamline offerings for clients. By aligning these capabilities, the Company will be able to better address client needs through a single, centralized global resource platform for creative communications, managed services, transaction processing, and intelligent digital solutions.