Why This Great Company Has a Deceptive Valuation
Donnelley Financial Solutions (NYSE: DFIN) is a dominant player in helping companies comply with SEC regulations. The company holds a No. 1, 2, or 3 position in all its highly cyclical markets. Donnelley knocked it out of the ballpark in 2021, thanks to the red-hot IPO market and an even hotter once-in-a-lifetime SPAC market. Since then, the stock has come down, and shares look cheap -- but only on paper.
Donnelley Financial Solutions has an envious customer list that boasts more than 300 S&P 500 customers
and over 700 Fortune 1000 customers. These customers use Donnelley's software for SEC compliance filing and transactional filings for things like IPOs, M&A, and new debt securities. Most of their customers have been with Donnelley for many years.
Source Fool.com
