DNB

Dun & Bradstreet Holdings Inc

Finance/Real Estate


Presented:08/05/2024
Price:$11.88
Cap:$5.25B
Current Price:$11.12
Cap:$4.91B

Presented

Date08/05/2024
Price$11.88
Market Cap$5.25B
Ent Value$7.46B
P/E RatioN/A
Book Value$7.53
Div Yield1.68%
Shares O/S441.79M
Ave Daily Vol4,057,133
Short Int10.56%

Current

Price$11.12
Market Cap$4.91B
Dun & Bradstreet Holdings, Inc. engages in providing business decisioning data and analytics solutions. The firm is involved in providing information with its solutions to support its clients with critical business operations. It offers end-to-end solutions to clients in the small business, finance, sales & marketing, third party risk & compliance, and public sectors. The company was founded on August 8, 2018, and is headquartered in Jacksonville, FL.

Publicly traded companies mentioned herein: Cannae Holdings Inc (CNNE), Dun & Bradstreet Holdings Inc (DNB)

Highlights

The presenter is long shares of Dun & Bradstreet Holdings Inc (DNB), which he describes as a “boring data business.” DNB bought data assets from Thomson Reuters that were previously under-invested in and had to invest in the assets to drive growth. These investments have shone through in most of the business; when DNB reported Q2’24 earnings, the entire company grew revenues 4.2% but management noted that 90% of the business grew over 6% in Q2 and is up ~6% YTD. Management has expressed its plan to either fix or divest the remaining 10% of the business that weighs on growth, which he expects to drive valuation upside with the stock currently trading at 8.7x consensus 2024 EBITDA and 11.7x consensus 2024 EPS, whereas data businesses that grow revenue 6% typically trade at 16x EBITDA and 20x+ EPS. 

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Idea Discussion

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