Dun & Bradstreet Holdings, Inc. (DNB) | Investment Case

1. Company Snapshot

1.a. Company Description

Dun & Bradstreet Holdings, Inc.provides business decisioning data and analytics in North America and internationally.It offers finance and risk solutions, including D&B Finance Analytics, an online application that offers clients real time access to its information, comprehensive monitoring, and portfolio analysis; D&B Direct, an application programming interface (API) that delivers risk and financial data directly into enterprise applications for real-time credit decision making; D&B Small Business, a suite of powerful tools that allows SMBs to monitor and build their business credit file; D&B Enterprise Risk Assessment Manager, a solution for managing and automating credit decisioning and reporting; and InfoTorg, an online SaaS application.

The company also provides risk and compliance solutions, such as D&B Supplier Risk Manager that provides insights to help certify, monitor, analyze, and mitigate risk across the supply chain; D&B Onboard to provide comprehensive insights into businesses to facilitate KYC/AML compliance, as well as to minimize financial, legal, and reputational risk exposure; and D&B Beneficial Ownership that offers risk intelligence on ultimate beneficial ownership.It offers sales and marketing solutions, including D&B Connect, a self-service data management platform; D&B Optimizer, an integrated data management solution; D&B Rev.Up ABX, an open and agnostic platform that aligns marketing and sales teams to deliver an optimal and coordinated buying; D&B Hoovers, a sales intelligence solution; D&B Audience Targeting, which helps clients to reach the right audiences with the right messages; D&B Visitor Intelligence that turns web visitors into leads; and D&B Direct, an API-enabled data management solution that delivers valuable customer insights into CRMs, marketing automation, and other marketing applications for on-demand business intelligence.The company was founded in 1841 and is headquartered in Jacksonville, Florida.

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1.b. Last Insights on DNB

Dun & Bradstreet Holdings, Inc.'s recent performance was driven by the launch of D&B Healthcare Insights, a powerful new dataset designed to help sales and marketing teams uncover growth opportunities and make smarter, faster decisions across the healthcare ecosystem. Additionally, the company's comprehensive AI-ready business data was integrated into the Chorus Intelligence Suite, enhancing investigative capabilities with business intelligence. Furthermore, Dun & Bradstreet's proprietary corporate data complements LexisNexis' repository of legal data and licensed news content, including the industry's largest collection of GenAI-approved news datasets.

1.c. Company Highlights

Last Price	9.15
Change Percentage	0.44%
Open	9.14
Previous Close	9.11
Market Cap ( Millions)	4083
Volume	17826710
Year High	12.95
Year Low	7.78
M A 50	9.1
M A 200	10.03

FCF Yield	6.52%
Dividend Yield	0.55%
ROE	-1.16%
Debt / Equity	107.36%
Net Debt / EBIDTA	410.60%
Price To Book	1.2
Price Earnings Ratio	-103.47
Price To FCF	15.35
Price To sales	1.7
EV / EBITDA	9.23

2. Dun & Bradstreet's 2024 Earnings Report: A Year of Improvement Amidst Strategic Review

Dun & Bradstreet's 2024 earnings report showed a year of improvement, with 3% organic revenue growth, 30 basis points of EBITDA margin expansion, and significant strides in product, technology, and data transformation. However, the company fell short of its 4% organic revenue growth target in the fourth quarter due to three anomalies, including deal delays, partnership exits, and timing-related delays in expected usage and deliveries.

Publication Date: Feb -25

                                    📋 Highlights
                                    Disappointing Q4 Revenue Growth:
                                                Dun & Bradstreet's Q4 revenue growth was less than 1%, missing the 4% organic revenue growth target due to three anomalies: delayed deals, exit of two partnerships, and timing-related delays in expected usage and deliveries.
Strong International Performance:
                                                The International segment saw a 6% revenue growth in Q4, driven by growth in API solutions and local market solutions, with all markets contributing to growth.
Focus on Vertical Approach and Go-to-Market Strategy:
                                                The company's focus in 2025 will be on a vertical approach to deepen client relationships and launch vertical-specific solutions, leveraging modernized technology and platforms to access high-growth areas.
Guidance for 2025:
                                                The company expects total revenues to grow 2.5%-5% to $2.44-$2.50 billion, with adjusted EBITDA of $955-$985 million, and an adjusted effective tax rate of 22%-23%.
Strategic Review Process Update:
                                                The company expects to share the outcome of the strategic review process in the first quarter, with the team focused on delivering operational and financial objectives, including accelerated growth in organic revenues, EBITDA, net earnings, and free cash flow.

                                

Financial Performance

Fourth-quarter revenues were $632 million, a decrease of less than 1% compared to the prior year quarter. Adjusted EBITDA was $260 million, a decrease of less than 1%, primarily due to higher cloud infrastructure costs. Full-year revenues were $2,382 million, an increase of 3% compared to the prior year. The company's North America segment saw a 1.8% decrease in revenues, while the International segment grew 6%.

Segment Performance

The North America segment saw a decline in Finance and Risk revenues, down 5% due to decreased revenue from timing throughout 2024. In contrast, the International segment saw a 9% increase in Finance and Risk revenues, driven by growth in API solutions and local market solutions.

Guidance and Outlook

For 2025, the company expects total revenues to grow 2.5% to 5%, with adjusted EBITDA expected to be in the range of $955 million to $985 million. The company also expects adjusted interest expense to be around $200 million, depreciation and amortization expense to be in the range of $160 million to $170 million, and an adjusted effective tax rate of approximately 22% to 23%.

Valuation

With a price-to-sales ratio of 1.69 and an enterprise value-to-EBITDA ratio of 10.44, the company's valuation appears reasonable given its growth prospects and improving profitability. The dividend yield of 2.2% also provides some income support for investors.

Management Commentary

CEO Anthony Jabbour noted that the company's assets and capabilities still resonate in the market, despite some hesitation from clients and distraction from employees due to the ongoing strategic review process. He expressed confidence in the company's ability to deliver accelerated growth in organic revenues, EBITDA, net earnings, and free cash flow.

Analyst Estimates

Analysts expect next year's revenue growth to be around 4.4%, which is slightly above the company's guidance. This implies that the market is pricing in some optimism around the company's ability to deliver on its growth prospects.

3. NewsRoom

Dun & Bradstreet Signals New Era for Enterprise AI with Launch of D&B.AI Suite of Capabilities

Oct -16

Source: prnewswire.com

Clearlake-Backed Dun & Bradstreet Announces the Appointment of Stephen Tulenko as Chief Executive Officer

Sep -03

Source: prnewswire.com

Nexis Solutions Integrates Dun & Bradstreet's Comprehensive AI-Ready Business Data to Boost Customer Decision-Making

Aug -28

Source: globenewswire.com

SalMar - Share buyback program has been completed

Aug -25

Source: globenewswire.com

Dun & Bradstreet (DNB) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Aug -12

Source: zacks.com

Dun & Bradstreet (DNB) Lags Q2 Earnings and Revenue Estimates

Aug -11

Source: zacks.com

Dun & Bradstreet Unveils D&B Healthcare Insights to Help Sales and Marketing Teams Across Industries Unlock Opportunities in the Healthcare Ecosystem

Jul -31

Source: prnewswire.com

Chorus Intelligence Collaborates with Dun & Bradstreet to Integrate Global Business Data into the Chorus Intelligence Suite

Jul -15

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.63%)

6. Segments

Finance & Risk

Expected Growth: 4.5%

Dun & Bradstreet Holdings, Inc.'s 4.5% growth in Finance & Risk is driven by increasing demand for risk management solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's investments in AI-powered analytics and digital transformation have enhanced its product offerings, attracting new customers and increasing revenue.

Sales & Marketing

Expected Growth: 4.8%

Dun & Bradstreet Holdings, Inc.'s 4.8% growth in Sales & Marketing is driven by increasing demand for data-driven insights, expansion into new markets, and strategic partnerships. The company's investments in AI-powered analytics and digital transformation initiatives have also contributed to this growth, enabling clients to make informed business decisions and driving revenue expansion.

7. Detailed Products

D&B Hoovers

A sales intelligence platform that provides access to company and contact data, sales acceleration tools, and analytics to help businesses identify and prioritize potential customers.

D&B Data Cloud

A cloud-based data platform that provides access to Dun & Bradstreet's global database of company and contact information, as well as data analytics and integration tools.

D&B Credit Reporter

A credit reporting tool that provides detailed credit information on businesses, including credit scores, payment history, and public records.

D&B Supplier Risk Manager

A supplier risk management solution that provides real-time monitoring and alerts for supplier risk, as well as analytics and reporting tools.

D&B Compliance Screening

A compliance screening solution that provides real-time screening and monitoring of customers, suppliers, and third-party partners against global sanctions and watch lists.

D&B Analytics Studio

A data analytics platform that provides advanced data visualization, machine learning, and predictive analytics capabilities.

8. Dun & Bradstreet Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dun & Bradstreet Holdings, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative credit reporting agencies.

Bargaining Power Of Customers

Dun & Bradstreet Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often essential for businesses, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Dun & Bradstreet Holdings, Inc. has a diversified supply chain, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over its suppliers.

Threat Of New Entrants

The credit reporting industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to enter the market and compete with established players like Dun & Bradstreet Holdings, Inc.

Intensity Of Rivalry

The credit reporting industry is highly competitive, with several established players competing for market share. However, Dun & Bradstreet Holdings, Inc. has a strong brand and a large customer base, which helps it to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	50.91%
Debt Cost	9.74%
Equity Weight	49.09%
Equity Cost	9.74%
WACC	9.74%
Leverage	103.69%

11. Quality Control: Dun & Bradstreet Holdings, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

LPL Financial Holdings

A-Score: 5.3/10

Value: 5.0

Growth: 6.9

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

StoneX

A-Score: 5.2/10

Value: 6.9

Growth: 4.8

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

Mr. Cooper Group

A-Score: 5.2/10

Value: 3.8

Growth: 4.3

Quality: 6.7

Yield: 1.0

Momentum: 10.0

Volatility: 5.3

1-Year Total Return ->

FactSet Research Systems

A-Score: 4.9/10

Value: 3.8

Growth: 6.3

Quality: 7.2

Yield: 3.0

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

Morningstar

A-Score: 4.7/10

Value: 2.9

Growth: 7.7

Quality: 7.2

Yield: 1.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

Dun & Bradstreet Holdings

A-Score: 4.7/10

Value: 6.5

Growth: 4.6

Quality: 3.6

Yield: 2.0

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.17%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.74%

Dun & Bradstreet Holdings, Inc. - US26484T1060

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DNB

1.c. Company Highlights

Lower Quality

Weak Momentum

Average Yield

Average Growth

Stable Momentum

Earnings Miss

Revenues Miss

Revenues Beats

Average Quality

Earnings Beats

Medium Volatility

Fairly Valued

Less Volatile

2. Dun & Bradstreet's 2024 Earnings Report: A Year of Improvement Amidst Strategic Review

Financial Performance

Segment Performance

Guidance and Outlook

Valuation

Management Commentary

Analyst Estimates

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.63%)

6. Segments

Finance & Risk

Expected Growth: 4.5%

Sales & Marketing

Expected Growth: 4.8%

7. Detailed Products

D&B Hoovers

D&B Data Cloud

D&B Credit Reporter

D&B Supplier Risk Manager

D&B Compliance Screening

D&B Analytics Studio

8. Dun & Bradstreet Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Dun & Bradstreet Holdings, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.15$

Current Price

9.15$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA