DNB
D&B Corporation
Finance/Real Estate
12/20/2013
Presented
| Date | 12/17/2013 |
| Price | $115.83 |
| Market Cap | $4.42B |
| Ent Value | $5.67B |
| P/E Ratio | 16.45x |
| Book Value | N/A |
| Div Yield | 1.4% |
| Shares O/S | 38.16M |
| Ave Daily Vol | 330,000 |
| Short Int | 11.83% |
Current
| Price | $11.12 |
| Market Cap | $4.91B |
| The Dun & Bradstreet Corporation provides commercial information and insight on businesses worldwide. The company offers risk management solutions, such as DNBi, an online application that offers the customers real time access to global business information, and comprehensive monitoring and portfolio analysis; and supply management solutions, which help companies to understand the financial risk of their supply chain. Its risk management solutions also include eRAM, an enterprise solution for global and domestic customers for automated decision and portfolio analytics; D&B Direct, a software application programming interface that enables data integration inside enterprise applications, such as ERP; master data management; and various business information reports, such as comprehensive and international reports. The company also provides sales and marketing solutions comprising customer data integration solutions, which are a suite of solutions that cleanse, identify, link, and enrich customer information; and D&B Optimizer solution that transforms customer prospects and data into commercial insight, enabling a single customer view across multiple systems and touch points, such as marketing and billing databases, as well as offers marketing and prospecting solutions, which enable customers to create marketing campaigns. In addition, it provides Internet solutions to convert prospects into clients by enabling business professionals to research companies, executives, and industries under Hoover's brand name. The company’s principal customers include banks, credit and financial institutions, manufacturers, wholesalers, retailers, government agencies, insurance companies, and telecommunication companies, as well as sales, marketing, and business development professionals. The Dun & Bradstreet Corporation was founded in 1841 and is headquartered in Short Hills, New Jersey. |
Highlights
Shares of Dun & Bradstreet (DNB) are up nicely YTD (~45%), and at 17x earnings the market is valuing the company above its long-term multiple range. The presenter’s fund has been in-and-out of positions in DNB over the past few years, and given the present valuation he likes the risk/ reward setup and is short. He believes DNB is an “ice cube with some optionality” to the downside. Historically, DNB has had a near monopoly in its core business; however, they have been losing share to three main competitors in the market in North America, including Equifax and Experian. Over the recent past, DNB has seen declines in sales of 5% per-year, while new competition grows at 10% (and, the new entrants are priced at a steep discount to DNB’s prices).
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