• Donnelley Financial Solutions has attracted fresh attention after analysis of its Excess Returns model suggested the business earns returns on capital above its cost of capital, supported by relatively stable cash generation from compliance and financial communication services.
• The interesting angle is how these returns on capital, if sustained, could give Donnelley Financial Solutions more room to fund software expansion while still returning cash to shareholders through activity such as buybacks.
• We will look at how Donnelley Financial Solutions’ investment narrative is influenced by renewed focus on excess returns and stable cash generation.

Scan beyond Donnelley Financial Solutions and compare its excess-returns profile with a…