Morningstar Rating

Stock Research and Analysis

by R.J. Hottovy, CFA

Bulls Say

R.R. Donnelley's core operations have generated profits despite intense price competition within the industry, illustrating its resiliency in an otherwise competitive industry.
R.R. Donnelley is both operationally and financially leveraged to cyclical markets, so a sustained economic recovery could significantly boost the firm's results.
R.R. Donnelley can acquire print competitors for cheap multiples because of the industry's headwinds and create value as the firm combines operations and generates synergies. Read more 

Bears Say

Excess capacity will continue to be a headwind for the print industry because of high exit barriers.
R.R. Donnelley is exposed to highly cyclical markets, which could experience fierce price competition because of weak demand.
Demand for R.R. Donnelley's services could decline as more firms make the transition from traditional printing services to digital mediums, continuing to pressure pricing across the sector. Read more 

Management

We have assigned R.R. Donnelley a Poor stewardship rating. From our perspective, the executive team has efficiently managed the company's day-to-day operations. However, management has taken an aggressive approach of increasing leverage to finance share   Read more 

Profile

R.R. Donnelley is a global provider of printing and media solutions for large corporate customers. The firm has diversified printing operations in magazines, newspaper inserts,  Read more 

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