R R Stock Story

RRD
 Stock
  

USD 10.84  0.00  0.00%   

It looks like Pitney Bowes will continue to recover faster as its price went down 1.03% today to Donnelley's 0.28%. As many rational traders are trying to avoid industrials space, it makes sense to digest Donnelley RR Sons a little further and understand how it stands against Pitney Bowes and other similar entities. We are going to discuss some of the competitive aspects of both Donnelley and Pitney.
Published over three months ago
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R R Maximum Pain Price across 2022-09-16 Option Contracts

R R's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of R R close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of R R's options.
Is Donnelley riskier than Pitney Bowes (NYSE:PBI)?
By analyzing existing basic indicators between Donnelley and Pitney, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Pitney with a short position in Donnelley. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Donnelley has an asset utilization ratio of 155.25 percent. This indicates that the company is making $1.55 for each dollar of assets. An increasing asset utilization means that Donnelley RR Sons is more efficient with each dollar of assets it utilizes for everyday operations.

How important is R R's Liquidity

R R financial leverage refers to using borrowed capital as a funding source to finance R R Donnelley ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. R R financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between R R's total debt and its cash.

How does R R utilize its cash?

To perform a cash flow analysis of R R, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash R R is receiving and how much cash it distributes out in a given period. The R R cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
R R Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 172.27 Million

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Donnelley revenue. Based on the latest financial disclosure, Donnelley RR Sons reported 4.94 B of revenue. This is 41.2% higher than that of the Industrials sector and significantly higher than that of the Specialty Business Services industry. The revenue for all United States stocks is 47.64% higher than that of Donnelley. As for Pitney Bowes we see revenue of 3.72 B, which is much higher than that of the Specialty Business Services

Donnelley4.94 Billion
Sector0.0
Pitney3.72 Billion
4.9 B
Donnelley
Sector
3.7 B
Pitney

Donnelley is projected to stay under $10.97 in March

Latest standard deviation is at 2.1. Donnelley RR Sons has relatively low volatility with skewness of 1.23 and kurtosis of 8.83. However, we advise all investors to independently investigate Donnelley RR Sons to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Donnelley's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Donnelley's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Donnelley Implied Volatility

Donnelley's implied volatility exposes the market's sentiment of Donnelley RR Sons stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Donnelley's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Donnelley stock will not fluctuate a lot when Donnelley's options are near their expiration.

Our Takeaway on Donnelley Investment

Although few other entities under the specialty business services industry are still a bit expensive, Donnelley may offer a potential longer-term growth to shareholders. To conclude, as of the 17th of February 2022, our research shows that Donnelley is a rather not too volatile investment opportunity with a below average probability of financial unrest in the next two years. From a slightly different view, the entity currently appears to be overvalued. However, our actual 90 days buy-hold-sell advice on the firm is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of R R Donnelley. Please refer to our Terms of Use for any information regarding our disclosure principles.

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