DFINDonnelley Financial Solutions, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.0×) and margins widening.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DFIN?
Donnelley Financial Solutions, Inc. earns 21% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 12 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2026
- Cash conversion
- 1.95×
Cash conversion · 1.90× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −10%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 0.40% |
| FY2021 | 22% |
| FY2022 | 17% |
| FY2023 | 14% |
| FY2024 | 17% |
| FY2025 | 18% |
Details›
- Gross margin12 months to Q2 2026
- 64%
- Operating margin12 months to Q2 2026
- 19%
- Net margin12 months to Q2 2026
- 4.5%
- Free cash flow margin
- 20%
- Revenue, trailing twelve months
- $778M
- Free cash flow, trailing twelve months
- $152M
- Net income, trailing twelve months
- $35M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 21%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #8 of 96 by RyuScore