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:
We started the process of determining a valid price forecast for RR Donnelley & Sons Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that RR Donnelley & Sons Co ranked in the 36th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 34%. As for the metrics that stood out in our discounted cash flow analysis of RR Donnelley & Sons Co, consider:
Interest coverage, a measure of earnings relative to interest payments, is 0.45 -- which is good for besting only 23.72% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 5.43 years, is -0.24% -- higher than merely 6.01% of stocks in our DCF forecasting set.
4% of the company's capital comes from equity, which is greater than merely 1.49% 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 CVA, LUV, NSP, TTC, and AME.
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.