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R. R. Donnelley & Sons

NYSE:RRD
Snowflake Description

Mediocre balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RRD
NYSE
$65M
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

R.R. Donnelley & Sons Company, an integrated communications provider, enables organizations to create, manage, deliver, and optimize their multichannel marketing and business communications. The last earnings update was 38 days ago. More info.


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  • R. R. Donnelley & Sons has significant price volatility in the past 3 months.
RRD Share Price and Events
7 Day Returns
-4.6%
NYSE:RRD
-6.8%
US Commercial Services
-4.1%
US Market
1 Year Returns
-80.4%
NYSE:RRD
-20.5%
US Commercial Services
-14.9%
US Market
RRD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
R. R. Donnelley & Sons (RRD) -4.6% -47.7% -76.8% -80.4% -92.2% -98.4%
US Commercial Services -6.8% -26.3% -28.5% -20.5% 4% 18.8%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • RRD underperformed the Commercial Services industry which returned -20.5% over the past year.
  • RRD underperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
RRD
Industry
5yr Volatility vs Market

RRD Value

 Is R. R. Donnelley & Sons undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of R. R. Donnelley & Sons to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for R. R. Donnelley & Sons.

NYSE:RRD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ .120000
Payout Ratio Company Filings (2019-12-31) -3488.6%
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RRD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.594 (1 + (1- 21%) (3109.42%))
0.769
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.8 * 5.44%)
6.09%

Discounted Cash Flow Calculation for NYSE:RRD using Dividend Discount Model Model

The calculations below outline how an intrinsic value for R. R. Donnelley & Sons is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NYSE:RRD Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.12 / (6.09% - 1.74%)
$2.76
NYSE:RRD Discount to Share Price
Calculation Result
Value per share (USD) From above. $2.76
Current discount Discount to share price of $0.92
= -1 x ($0.92 - $2.76) / $2.76
66.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price R. R. Donnelley & Sons is available for.
Intrinsic value
>50%
Share price is $0.92 vs Future cash flow value of $2.76
Current Discount Checks
For R. R. Donnelley & Sons to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • R. R. Donnelley & Sons's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • R. R. Donnelley & Sons's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for R. R. Donnelley & Sons's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are R. R. Donnelley & Sons's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RRD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-1.31
NYSE:RRD Share Price ** NYSE (2020-04-03) in USD $0.92
United States of America Commercial Services Industry PE Ratio Median Figure of 53 Publicly-Listed Commercial Services Companies 19.23x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of R. R. Donnelley & Sons.

NYSE:RRD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RRD Share Price ÷ EPS (both in USD)

= 0.92 ÷ -1.31

-0.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • R. R. Donnelley & Sons is loss making, we can't compare its value to the US Commercial Services industry average.
  • R. R. Donnelley & Sons is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does R. R. Donnelley & Sons's expected growth come at a high price?
Raw Data
NYSE:RRD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
121.7%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 35 Publicly-Listed Commercial Services Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for R. R. Donnelley & Sons, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on R. R. Donnelley & Sons's assets?
Raw Data
NYSE:RRD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-5.41
NYSE:RRD Share Price * NYSE (2020-04-03) in USD $0.92
United States of America Commercial Services Industry PB Ratio Median Figure of 86 Publicly-Listed Commercial Services Companies 1.14x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NYSE:RRD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RRD Share Price ÷ Book Value per Share (both in USD)

= 0.92 ÷ -5.41

-0.17x

* Primary Listing of R. R. Donnelley & Sons.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • R. R. Donnelley & Sons has negative assets, we can't compare the value of its assets to the US Commercial Services industry average.
X
Value checks
We assess R. R. Donnelley & Sons's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. R. R. Donnelley & Sons has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RRD Future Performance

 How is R. R. Donnelley & Sons expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
121.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is R. R. Donnelley & Sons expected to grow at an attractive rate?
  • R. R. Donnelley & Sons's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • R. R. Donnelley & Sons's earnings growth is expected to exceed the United States of America market average.
  • R. R. Donnelley & Sons's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RRD Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RRD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 121.7%
NYSE:RRD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -9.7%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RRD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RRD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,196 14 1
2020-12-31 5,585 25 1
2020-04-04
NYSE:RRD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 6,276 139 -93
2019-09-30 6,413 180 -26
2019-06-30 6,444 214 -4
2019-03-31 6,614 214 -10
2018-12-31 6,800 204 -11
2018-09-30 6,963 157 -41
2018-06-30 7,048 131 -83
2018-03-31 6,989 83 6
2017-12-31 6,940 218 -34
2017-09-30 6,873 116 -470
2017-06-30 6,863 187 -440
2017-03-31 6,846 315 -540

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • R. R. Donnelley & Sons's earnings are expected to grow significantly at over 20% yearly.
  • R. R. Donnelley & Sons's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RRD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from R. R. Donnelley & Sons Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RRD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.20 0.20 0.20 1.00
2020-12-31 0.36 0.36 0.36 1.00
2020-04-04
NYSE:RRD Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -1.31
2019-09-30 -0.36
2019-06-30 -0.06
2019-03-31 -0.14
2018-12-31 -0.16
2018-09-30 -0.58
2018-06-30 -1.18
2018-03-31 0.09
2017-12-31 -0.49
2017-09-30 -6.71
2017-06-30 -6.28
2017-03-31 -7.71

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if R. R. Donnelley & Sons will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess R. R. Donnelley & Sons's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
R. R. Donnelley & Sons has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RRD Past Performance

  How has R. R. Donnelley & Sons performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare R. R. Donnelley & Sons's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • R. R. Donnelley & Sons does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare R. R. Donnelley & Sons's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare R. R. Donnelley & Sons's 1-year growth to the US Commercial Services industry average as it is not currently profitable.
Earnings and Revenue History
R. R. Donnelley & Sons's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from R. R. Donnelley & Sons Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RRD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 6,276.20 -93.20 759.00
2019-09-30 6,413.40 -25.90 787.10
2019-06-30 6,443.50 -4.20 805.30
2019-03-31 6,614.30 -10.20 815.30
2018-12-31 6,800.20 -11.00 812.80
2018-09-30 6,962.60 -41.10 835.80
2018-06-30 7,048.00 -83.40 831.40
2018-03-31 6,988.50 6.10 851.30
2017-12-31 6,939.60 -34.40 845.30
2017-09-30 6,872.70 -470.20 865.30
2017-06-30 6,863.40 -440.20 871.30
2017-03-31 6,846.30 -539.90 880.40
2016-12-31 6,833.00 -486.20 894.30
2016-09-30 3,589.20 -96.70 601.50
2016-06-30 4,691.60 -104.40 704.80
2016-03-31 5,836.80 -37.70 781.00
2015-12-31 6,880.70 -19.00 872.10
2015-09-30 11,391.50 99.60 1,388.00
2015-06-30 11,521.30 147.50 1,401.00
2015-03-31 11,675.70 168.70 1,430.00
2014-12-31 7,172.70 -43.70 926.10
2014-09-30 11,289.40 201.90 1,292.00
2014-06-30 10,946.50 154.40 1,247.90
2014-03-31 10,615.60 155.10 1,203.20
2013-12-31 10,480.30 211.20 1,175.60
2013-09-30 10,384.60 -741.80 1,155.00
2013-06-30 10,278.50 -685.10 1,116.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if R. R. Donnelley & Sons has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • R. R. Donnelley & Sons used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • It is difficult to establish if R. R. Donnelley & Sons improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess R. R. Donnelley & Sons's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
R. R. Donnelley & Sons has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RRD Health

 How is R. R. Donnelley & Sons's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up R. R. Donnelley & Sons's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • R. R. Donnelley & Sons is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • R. R. Donnelley & Sons's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of R. R. Donnelley & Sons's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • R. R. Donnelley & Sons has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from R. R. Donnelley & Sons Company Filings, last reported 3 months ago.

NYSE:RRD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -370.30 1,818.40 190.80
2019-09-30 -276.90 2,029.10 144.70
2019-06-30 -270.80 2,121.40 220.50
2019-03-31 -250.00 2,171.80 274.30
2018-12-31 -245.40 2,091.50 370.60
2018-09-30 -219.50 2,177.30 247.00
2018-06-30 -247.50 2,255.40 257.00
2018-03-31 -188.30 2,188.50 235.20
2017-12-31 -202.90 2,109.70 273.40
2017-09-30 -163.00 2,250.10 225.80
2017-06-30 -161.50 2,252.50 226.30
2017-03-31 -174.10 2,247.20 364.70
2016-12-31 -92.20 2,387.40 646.20
2016-09-30 538.40 3,890.00 411.80
2016-06-30 619.50 3,611.00 290.60
2016-03-31 697.50 3,567.40 263.70
2015-12-31 696.60 2,418.70 288.70
2015-09-30 662.70 3,676.30 257.30
2015-06-30 737.60 3,746.80 295.40
2015-03-31 558.60 3,634.30 268.70
2014-12-31 620.40 3,602.00 527.90
2014-09-30 918.40 3,760.80 269.20
2014-06-30 914.80 3,835.30 288.90
2014-03-31 885.50 3,905.50 308.40
2013-12-31 653.70 3,857.90 1,028.40
2013-09-30 36.40 3,516.00 462.80
2013-06-30 55.10 3,515.30 354.40
  • R. R. Donnelley & Sons has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if R. R. Donnelley & Sons's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making R. R. Donnelley & Sons has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making R. R. Donnelley & Sons has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40.8% per year.
X
Financial health checks
We assess R. R. Donnelley & Sons's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. R. R. Donnelley & Sons has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RRD Dividends

 What is R. R. Donnelley & Sons's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
13.05%
Current annual income from R. R. Donnelley & Sons dividends.
If you bought $2,000 of R. R. Donnelley & Sons shares you are expected to receive $261 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • R. R. Donnelley & Sons's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (2.04%).
  • R. R. Donnelley & Sons's dividend is above the markets top 25% of dividend payers in United States of America (5.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RRD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RRD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2020-04-04
NYSE:RRD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-24 0.120 4.982
2019-04-04 0.120 4.497
2019-01-17 0.120 2.326
2018-10-23 0.120 2.352
2018-08-02 0.120 2.389
2018-08-01 0.120 2.267
2018-04-05 0.560 8.359
2018-01-17 0.560 7.018
2017-10-25 0.560 6.324
2017-04-06 0.560 5.103
2017-01-18 0.560 3.733
2016-10-27 0.560 3.298
2016-07-21 3.120 8.673
2016-04-07 3.120 6.220
2016-01-12 3.120 7.180
2015-10-22 3.120 6.727
2015-07-23 3.120 6.568
2015-04-17 3.120 5.660
2015-01-15 3.120 5.728
2014-10-29 3.120 6.287
2014-07-24 3.120 6.202
2014-04-10 3.120 6.386
2014-01-09 3.120 5.643
2013-10-24 3.120 5.641
2013-07-26 3.120 6.161
2013-04-11 3.120 7.933
2013-01-10 3.120 10.196
2012-10-24 3.120 11.151
2012-07-19 3.120 8.998
2012-04-05 3.120 9.103
2012-01-13 3.120 8.212
2011-10-26 3.120 6.969
2011-07-21 3.120 6.899
2011-04-07 3.120 5.285
2011-01-13 3.120 5.652
2010-10-27 3.120 6.035
2010-07-21 3.120 6.155
2010-04-14 3.120 5.580
2010-01-07 3.120 4.998
2009-10-28 3.120 4.834
2009-07-22 3.120 5.732

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of R. R. Donnelley & Sons's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess R. R. Donnelley & Sons's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can R. R. Donnelley & Sons afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. R. R. Donnelley & Sons has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RRD Management

 What is the CEO of R. R. Donnelley & Sons's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Daniel Knotts
COMPENSATION $5,822,882
AGE 55
TENURE AS CEO 3.5 years
CEO Bio

Mr. Daniel Lee Knotts, also known as Dan, has been the Chief Executive Officer and President of R.R. Donnelley & Sons Company since October 1, 2016. Mr. Knotts brings over 30 years of experience in the printing industry. Mr. Knotts served as the Chief Operating Officer of R.R. Donnelley & Sons Company since January 2013 until September 30, 2016. Mr. Knotts served as the Group President of RR Donnelley Brand at R.R. Donnelley & Sons Company from June 2008 to December 31, 2012. He served as an Executive Vice President of R.R. Donnelley & Sons Company. Mr. Knotts served in a variety of finance, operations, sales management and business unit leadership positions. He served as Group Executive Vice President of Long-run Print Solutions at Moore Wallace Inc. since May 2004. He served as Executive Vice President of R.R. Donnelley & Sons Company April 2007. Mr. Knotts served as the Chief Operating Officer of Global Print Solutions Group at R.R. Donnelley & Sons Company since January 2007 to April 2007. He served as Group Executive Vice President of Long-Run Print Solutions at R.R. Donnelley & Sons Company from March 2, 2004 to June 2007. He served as President of Catalog, Magazines and Retail Solutions of R.R. Donnelley & Sons Company. From 1986 to 2007, he served in various capacities with R.R. Donnelley, including Group Executive Vice President of Operations, Publishing and Retail Services. Mr. Knotts has been a Director of Factory Mutual Insurance Company since April 2015. He has been a Director of R.R. Donnelley & Sons Company since October 1, 2016.

CEO Compensation
  • Daniel's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Daniel's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the R. R. Donnelley & Sons management team in years:

3.5
Average Tenure
55
Average Age
  • The tenure for the R. R. Donnelley & Sons management team is about average.
Management Team

Daniel Knotts

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
3.5 yrs

Terry Peterson

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
54
TENURE
3.5 yrs

Ken O'Brien

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$1M
AGE
58
TENURE
16.2 yrs

John Pecaric

TITLE
President of RRD Business Services
COMPENSATION
$1M
AGE
53
TENURE
2 yrs

Doug Ryan

TITLE
President of RRD Marketing Solutions
COMPENSATION
$2M
AGE
56
TENURE
2 yrs

Mike Sharp

TITLE
Senior VP
AGE
57
TENURE
2.4 yrs

Brian Feeney

TITLE
Senior Vice President of Investor Relations

Deb Steiner

TITLE
Executive VP
COMPENSATION
$1M
AGE
51
TENURE
3.5 yrs

Sheila Rutt

TITLE
Executive VP & Chief Human Resources Officer
AGE
50
TENURE
2.8 yrs

J. Perry

TITLE
Executive VP of Domestic Operations & Chief Supply Chain Officer
AGE
59
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the R. R. Donnelley & Sons board of directors in years:

3.5
Average Tenure
60
Average Age
  • The tenure for the R. R. Donnelley & Sons board of directors is about average.
Board of Directors

Jack Pope

TITLE
Independent Chairman of the Board
COMPENSATION
$449K
AGE
70
TENURE
5.9 yrs

Daniel Knotts

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
3.5 yrs

Susan Gianinno

TITLE
Independent Director
COMPENSATION
$272K
AGE
70
TENURE
6.8 yrs

Tim McLevish

TITLE
Independent Director
COMPENSATION
$276K
AGE
64
TENURE
3.5 yrs

Jamie Moldafsky

TITLE
Independent Director
COMPENSATION
$251K
AGE
58
TENURE
3.5 yrs

Paul Phipps

TITLE
Independent Director
COMPENSATION
$276K
AGE
57
TENURE
3.5 yrs

Irene Esteves

TITLE
Independent Director
COMPENSATION
$249K
AGE
60
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Mar 20 Sell Chatham Asset Management Company 17. Mar 20 17. Mar 20 -2,100,000 $1.61 $-3,390,240
30. Aug 19 Buy Chatham Asset Management Company 28. Aug 19 28. Aug 19 100,000 $2.25 $225,070
28. Aug 19 Buy Chatham Asset Management Company 26. Aug 19 27. Aug 19 508,000 $2.25 $1,120,722
26. Aug 19 Buy Chatham Asset Management Company 22. Aug 19 23. Aug 19 650,000 $2.24 $1,432,870
22. Aug 19 Buy Chatham Asset Management Company 20. Aug 19 21. Aug 19 776,000 $2.07 $1,571,998
X
Management checks
We assess R. R. Donnelley & Sons's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. R. R. Donnelley & Sons has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RRD News

Simply Wall St News

Does R.R. Donnelley & Sons Company's (NYSE:RRD) CEO Salary Compare Well With Others?

Donnelley & Sons How Does Daniel Knotts's Compensation Compare With Similar Sized Companies? … Donnelley & Sons Company has a market cap of US$154m, and is paying total annual CEO compensation of US$5.8m. … Thus we can conclude that Daniel Knotts receives more in total compensation than the median of a group of companies in the same market, and of similar size to R.R.

Simply Wall St -

It Might Be Better To Avoid R.R. Donnelley & Sons Company's (NYSE:RRD) Upcoming 1.5% Dividend

Donnelley & Sons Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. … Donnelley & Sons didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. … Donnelley & Sons was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last 5 years, making us wonder if the dividend is sustainable at all.

Simply Wall St -

How Does Investing In R.R. Donnelley & Sons Company (NYSE:RRD) Impact The Volatility Of Your Portfolio?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Donnelley & Sons share price has been fairly sensitive to market volatility (over the last 5 years). … Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.

Simply Wall St -

Have Insiders Been Buying R.R. Donnelley & Sons Company (NYSE:RRD) Shares This Year?

Donnelley & Sons Company (NYSE:RRD), you may well want to know whether insiders have been buying or selling. … Donnelley & Sons The Last 12 Months Of Insider Transactions At R.R. … Donnelley & Sons Executive VP & Chief Information Officer Kenneth O'Brien made the biggest insider purchase in the last 12 months.

Simply Wall St -

Are Dividend Investors Getting More Than They Bargained For With R.R. Donnelley & Sons Company's (NYSE:RRD) Dividend?

Donnelley & Sons Company (NYSE:RRD) be an attractive dividend share to own for the long haul? … Donnelley & Sons likely looks attractive to investors, given its 5.2% dividend yield and a payment history of over ten years. … NYSE:RRD Historical Dividend Yield, June 6th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Although it reported a loss over the past 12 months, R.R. Donnelley & Sons currently pays a dividend. When a company is loss-making, we next need to check to see if its cash flows can support the dividend. R.R. Donnelley & Sons paid out a conservative 26% of its free cash flow as dividends last year. Is R.R. Donnelley & Sons's Balance Sheet Risky? Given R.R. Donnelley & Sons is paying a dividend but reported a loss over the past year, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest.

Simply Wall St -

Should You Worry About R.R. Donnelley & Sons Company's (NYSE:RRD) CEO Pay Cheque?

Donnelley & Sons Company (NYSE:RRD) since 2016. … Donnelley & Sons Company has a market capitalization of US$237m, and pays its CEO total annual compensation worth US$5.8m. … Donnelley & Sons Company, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Have Insiders Been Buying R.R. Donnelley & Sons Company (NYSE:RRD) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … Donnelley & Sons Company (NYSE:RRD), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

Easy Come, Easy Go: How R.R. Donnelley & Sons (NYSE:RRD) Shareholders Got Unlucky And Saw 91% Of Their Cash Evaporate

Donnelley & Sons Company (NYSE:RRD) for five years would be nursing their metaphorical wounds since the share price dropped 91% in that time. … Donnelley & Sons is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Donnelley & Sons reduced its trailing twelve month revenue by 12% for each year.

Simply Wall St -

Something To Consider Before Buying R.R. Donnelley & Sons Company (NYSE:RRD) For The 2.1% Dividend

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Donnelley & Sons Company (NYSE:RRD) has paid dividends to shareholders, and these days it yields 2.1%. … Donnelley & Sons tick all the boxes of a great dividend stock?

Simply Wall St -

Is There An Opportunity With R.R. Donnelley & Sons Company's (NYSE:RRD) 31.42% Undervaluation?

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

RRD Company Info

Description

R.R. Donnelley & Sons Company, an integrated communications provider, enables organizations to create, manage, deliver, and optimize their multichannel marketing and business communications. Its Business Services segment offers commercial printing products and branded materials, including manuals, publications, brochures, business cards, flyers, post cards, posters, and promotional items; and specialized transportation and distribution services. It also provides customer billings, financial statements, healthcare communications, and insurance document statement printing services; distribution, shipping, healthcare, durable goods, promotional, and consumer product goods packaging labels; and packaging solutions, including rigid boxes and in-box print materials for clients in the consumer electronics, life sciences, cosmetics, and consumer packaged goods industries. In addition, this segment offers workflow design, assembly, configuration, kitting, and fulfillment services for clients in the consumer electronics, telecommunications, life sciences, cosmetics, education, and industrial industries. Further, it provides invoices, order, and business forms that support the private and public sectors; and outsourcing services, such as creative services, research and analytics, financial management, and other services for legal providers, insurance, telecommunications, utilities, retail, and financial services companies. The company’s Marketing Solutions segment offers direct marketing, such as audience segmentation, creative development, program testing, print production, postal optimization, and performance analytics for large-scale personalized direct mail programs; and in-store marketing, digital print, kitting, fulfillment, digital, and creative solutions and list services. It operates in the United States, Asia, Europe, and internationally. The company was founded in 1864 and is headquartered in Chicago, Illinois.

Details
Name: R. R. Donnelley & Sons Company
RRD
Exchange: NYSE
Founded: 1864
$65,224,445
70,911,552
Website: http://www.rrdonnelley.com
Address: R. R. Donnelley & Sons Company
35 West Wacker Drive,
Chicago,
Illinois, 60601,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RRD Common Stock New York Stock Exchange US USD 02. Jan 1968
DB DLLN Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
BRSE DLLN Common Stock Berne Stock Exchange CH CHF 02. Jan 1968
DB DLLN COM Deutsche Boerse AG DE USD 04. Apr 2020
Number of employees
Current staff
Staff numbers
36,400
R. R. Donnelley & Sons employees.
Industry
Commercial Printing
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 02:56
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.