📊 DFIN Key Takeaways
Is Donnelley Financial Solutions, Inc. (DFIN) a Good Investment?
DFIN shows deteriorating fundamentals with net income down 64.9% YoY despite modest revenue decline, indicating severe margin compression and operational stress. The company faces critical cash flow challenges with negative operating cash flow (-$5.6M) and negative free cash flow (-$16.0M), threatening financial sustainability. Low cash reserves ($26.1M) relative to debt ($229.9M) create liquidity risk if current trends persist.
Donnelley Financial Solutions shows solid core operating profitability and healthy free cash flow generation, with an 18.4% operating margin and 14.1% FCF margin supporting fundamental resilience. However, revenue declined modestly and net income fell sharply year over year, indicating weaker earnings quality and possible pressure from below-the-operating-line items or changing demand conditions. The balance sheet is acceptable rather than exceptional, so the fundamentals support a neutral stance until earnings stability improves.
Why Buy Donnelley Financial Solutions, Inc. Stock? DFIN Key Strengths
- Strong interest coverage ratio (17.3x) provides debt service capacity
- Respectable operating margins (23.6%) show underlying business profitability
- Moderate leverage with debt-to-equity of 0.61x indicates manageable debt levels
- Strong operating profitability with an 18.4% operating margin
- Healthy cash generation, including $107.8M of free cash flow and 14.1% FCF margin
- Manageable leverage with 0.45x debt-to-equity and 10.9x interest coverage
DFIN Stock Risks: Donnelley Financial Solutions, Inc. Investment Risks
- Net income collapsed 64.9% YoY while revenue declined only 1.9%, suggesting margin compression and potential one-time charges
- Negative operating cash flow (-$5.6M) and free cash flow (-$16.0M) indicate inability to generate cash from operations
- Critically low cash position ($26.1M) relative to long-term debt ($229.9M) creates near-term liquidity vulnerability
- Weak return metrics (ROE 8.9%, ROA 4.0%) reflect poor capital efficiency
- Declining revenue trend combined with deteriorating profitability suggests structural business challenges
- Net income and diluted EPS declined sharply year over year, signaling earnings volatility
- Revenue contraction suggests limited near-term growth momentum
- Liquidity is only modest, with a current ratio of 1.06x and low cash balance relative to total liabilities
Key Metrics to Watch
- Operating cash flow - must return to positive to validate business sustainability
- Free cash flow trajectory - determine if negative FCF is structural or temporary
- Net income stabilization - monitor if margin compression reverses or continues
- Cash reserves and debt obligations - assess liquidity runway under current burn rate
- Revenue stabilization - need growth inflection to support profitability recovery
- Net income and EPS recovery versus operating income trend
- Revenue growth and free cash flow consistency
Donnelley Financial Solutions, Inc. (DFIN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Donnelley Financial Solutions, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DFIN Profit Margin, ROE & Profitability Analysis
DFIN vs Services Sector: How Donnelley Financial Solutions, Inc. Compares
How Donnelley Financial Solutions, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Donnelley Financial Solutions, Inc. Stock Overvalued? DFIN Valuation Analysis 2026
Based on fundamental analysis, Donnelley Financial Solutions, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Donnelley Financial Solutions, Inc. Balance Sheet: DFIN Debt, Cash & Liquidity
DFIN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Donnelley Financial Solutions, Inc.'s revenue has declined by 20% over the 5-year period, indicating business contraction. The most recent EPS of $2.69 reflects profitable operations.
DFIN Revenue Growth, EPS Growth & YoY Performance
DFIN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $201.1M | $31.0M | $1.05 |
| Q3 2025 | $175.3M | $8.7M | $0.29 |
| Q2 2025 | $218.1M | $36.1M | $1.28 |
| Q1 2025 | $201.1M | $31.0M | $1.05 |
| Q3 2024 | $179.5M | $8.7M | $0.29 |
| Q2 2024 | $242.1M | $37.7M | $1.24 |
| Q1 2024 | $198.6M | $15.8M | $0.52 |
| Q3 2023 | $180.0M | $18.1M | $0.60 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Donnelley Financial Solutions, Inc. Dividends, Buybacks & Capital Allocation
DFIN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Donnelley Financial Solutions, Inc. (CIK: 0001669811)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DFIN
What is the AI rating for DFIN?
Donnelley Financial Solutions, Inc. (DFIN) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DFIN's key strengths?
Claude: Strong interest coverage ratio (17.3x) provides debt service capacity. Respectable operating margins (23.6%) show underlying business profitability. ChatGPT: Strong operating profitability with an 18.4% operating margin. Healthy cash generation, including $107.8M of free cash flow and 14.1% FCF margin.
What are the risks of investing in DFIN?
Claude: Net income collapsed 64.9% YoY while revenue declined only 1.9%, suggesting margin compression and potential one-time charges. Negative operating cash flow (-$5.6M) and free cash flow (-$16.0M) indicate inability to generate cash from operations. ChatGPT: Net income and diluted EPS declined sharply year over year, signaling earnings volatility. Revenue contraction suggests limited near-term growth momentum.
What is DFIN's revenue and growth?
Donnelley Financial Solutions, Inc. reported revenue of $205.5M.
Does DFIN pay dividends?
Donnelley Financial Solutions, Inc. does not currently pay dividends.
Where can I find DFIN SEC filings?
Official SEC filings for Donnelley Financial Solutions, Inc. (CIK: 0001669811) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DFIN's EPS?
Donnelley Financial Solutions, Inc. has a diluted EPS of $1.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DFIN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Donnelley Financial Solutions, Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DFIN stock overvalued or undervalued?
Valuation metrics for DFIN: ROE of 8.9% (sector avg: 16%), net margin of 16.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DFIN stock in 2026?
Our dual AI analysis gives Donnelley Financial Solutions, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DFIN's free cash flow?
Donnelley Financial Solutions, Inc.'s operating cash flow is $-5.6M, with capital expenditures of $10.4M. FCF margin is -7.8%.
How does DFIN compare to other Services stocks?
Vs Services sector averages: Net margin 16.3% (avg: 10%), ROE 8.9% (avg: 16%), current ratio 1.41 (avg: 1.5).