Dun & Bradstreet: Here Is What You Need To Know Before Earnings

3:29 pm ET, 12 Feb 2018

Dun & Bradstreet Corp. (NYSE: DNB) is reporting its earnings today after market close. The report will be for the fiscal quarter conclusive of December 2017.   Based on Finstead Research, DNB price target upside is 10.16%.

How will the market react post earnings?  Nobody really knows, but here are some perspectives on the DNB stock.  

First, let's look at the reasons to buy DNB.

D&B's strong product portfolio and a high market share in the customer relationship management market are potent enough for the Company to keep its edge. D&B also excels in risk management, credit ratings, sales and marketing, e-business and supply management solutions.

The acquisition of Avention increased its sales and marketing by 47% and 12% respectively. NetProspex acquired in January 2015 provided a comprehensive database to the marketers. 

Conquering the emerging Asia-Pacific markets will lead to D&B’s customer base and global position expansion in the future.

D&B has been continuously launching solutions to leverage the advantages of its data and analytics abilities. Visitor Intelligence for personalized digital connectivity with the website and a credit-related cloud-based decision-making tool known as D&B Credit have proven to be very popular with customers. 

The Company’s customer base has grown through the partnership with larger firms such as Sugar CRM, Oracle Cloud, Salesforce, Lattice Engines and KPMG. It has successfully penetrated into regional markets through international partnerships with the local software solution providers in 136 countries.

Now, let's look at the reasons to sell DNB.

Except for its America's business, international business is at a loss which is evident from its last year's underperformance. A weaker DNBi business and a huge net debt of $1.25 Billion degraded D&B’s risk profile and limited its expansion.

D&B faces tough competition in the global financial information services industry from larger and smaller companies.

D&B’s higher investment in foundational data and advanced analytics to gain a competitive advantage creates a pressure its margins.

Over the last year, DNB returned +10.71%. This return is higher than Technology sector (10.10%) , but lower than Information & Delivery Services industry (13.55%) and S&P 500 (13.10%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Dun & Bradstreet Corporation (The) (DNB) Stock Guide

Updated at: 5:42 am ET, 12 Jul 2020

Before we start: if you're looking for DNB stock price, you can quickly find it out by visiting Finny and typing "DNB quote". If you're looking for a quick scoop on DNB stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "DNB". You'll get all this info in one place. Or you can just type "DNB news" to get the latest stock news.

Looking to buy or sell Dun & Bradstreet Corporation (The) (DNB)? Interested in getting the full scoop on DNB, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this DNB stock guide, we'll address key questions about DNB, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. DNB buy or sell? What is DNB Finny Score?
2. What are the reasons to buy DNB? Why should I buy DNB stock?
3. What are the reasons to sell DNB? Why should I sell DNB stock?
4. What are DNB key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Analysis

1. DNB buy or sell? What is DNB Finny Score?

#{finnyScore:null}Our quantitative analysis shows 2 reasons to buy and 0 reasons to sell DNB. DNB doesn’t have an assigned Finny Score, because we don’t have sufficient data points to score the stock.

2. What are the reasons to buy DNB? Why should I buy DNB stock?

Here are the reasons to buy DNB stock:

  • D&B benefits from having about 14,000 large companies feeding it data on their trade lines. This data would be almost impossible for any competitor to replicate.
  • Despite a stalled top line and margin compression in recent years, D&B remains a stable producer of strong free cash flow.
  • D&B's margins will increase once it completes the spending to realign its business.
  • D&B's strong product portfolio and a high market share in the customer relationship management market present a strong competitive edge. D&B also excels in risk management, credit ratings, sales and marketing, e-business and supply management solutions.
  • D&B’s acquisition efforts have been largely successful. The acquisition of Avention increased D&B’s sales by 47%. NetProspex acquired in January 2015 provides a comprehensive database to marketers. The previous acquisitions of Indicee and Fliptop led to D&B’s expansion of its customer base, global position, and product portfolio.
  • D&B has been continuously launching solutions to leverage its data and analytics capabilities. Visitor Intelligence for personalized digital connectivity and D&B Credit (a cloud-based, decision-support tool) are among the new innovative offerings that have been widely adopted by D&B’s customers.
  • D&B’s customer base is strengthened by partnerships with larger firms such as Sugar CRM, Oracle Cloud, Salesforce, Lattice Engines and KPMG. The Company successfully penetrated international markets through partnerships with local providers in 136 countries.
  • DNB stock price ($26.25) is close to the 52-week low ($25.35). Perhaps now is a good time to buy? See DNB price chart.
  • DNB profitability is improving. The YoY profit margin change was 2.37 percentage points. See DNB profitability chart.

3. What are the reasons to sell DNB? Why should I sell DNB stock?

Let's look at the reasons to sell DNB stock (i.e., the bear case):

  • The company's pension plan is materially underfunded.
  • The company is a serial user of one-time charges, having recorded restructuring charges every year for the past decade.
  • Management has historically returned the bulk of the company's free cash flow to shareholders, but this has ceased in the last two years, due to a shift toward growth and a more aggressive approach to acquisitions.
  • D&B’s international business is not profitable. A net debt of $1.25 Billion increases the Company’s risk profile and limits its expansion opportunities.
  • D&B faces tough competition in the global financial information services industry from larger and smaller companies.
  • A higher investment in foundational data and advanced analytics for the purpose of gaining a competitive advantage further compressed D&B's margins.

Key Stats

4. What are DNB key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for DNB:

Metrics DNB
Price $27.07
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry Information & Delivery Services
Sector Technology
Number of Employees N/A
Market Cap N/A
Forward P/E Ratio N/A
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth N/A
Profit Margin N/A

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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