Donnelley Financial Solutions Inc. Common Stock (DFIN)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. Donnelley Financial Solutions provides compliance and regulatory software and services, a niche with switching costs if embedded in customers' filings. But the filed numbers show uneven quality: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $224.2M, net income $36.4M, and diluted EPS $1.44; fiscal Q1 2026 was also profitable. Yet fiscal Q3 2025, ended 2025-09-30, produced a $40.9M net loss and $-1.49 diluted EPS. Full-year FY2025 net income was only $32.4M on $767.0M revenue, far below FY2024's $92.4M profit and FY2023's $82.2M. FairStock's Lynch rules call it a slow grower that is shrinking: profit -31.4% a year over four years and revenue -6.3%. Financial health is not distressed: debt-to-equity is 0.55, Altman Z is 3.30, and Piotroski is 8/9. Free cash flow is the brightest spot—$152.3M trailing, a 12.4% FCF yield. Still, at the 2026-10-13 close of $50.13, FairStock's P/E is 32.55, P/B 3.20, PEG 39.22, and Graham Number is $23.31, implying a negative 115.06% margin of safety. I would want a wider discount before calling this a bargain. The business is real and cash-generative, but the growth record and price demand caution.

In plain English: Donnelley Financial Solutions sells software and services that help companies meet financial filing and compliance rules. The business makes money and generates strong cash flow, but annual profits have been uneven and have shrunk from prior years. At the recent price of $50.13, the stock looks expensive compared with those earnings and its asset value, even though cash generation is a positive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer