Richard Sosa sees value in DFIN's niche - podcast episode cover

Richard Sosa sees value in DFIN's niche

Nov 18, 20211 hr 7 min
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Episode description

Richard Sosa, host of the Riches in Niches podcast, discusses his thesis on Donnelly Financial (DFIN). Despite a strong recent run, DFIN trades at a value multiple, and Richard breaks down all the reasons why he thinks the stock is too cheap and why DFIN is a huge beneficiary of the current SPAC / IPO boom.

My twitter background thread on DFIN: https://twitter.com/AndrewRangeley/status/1460661067395305479?s=20

Riches in Niches podcast twitter: @RichesNichesPod

Chapters
0:00 Intro
1:40 Some background on Richard
4:10 Why Richard likes niches
5:10 DFIN overview
10:45 DFIN's classic spin dynamics
14:35 DFIN's public to private headwinds before the SPAC boom
18:30 Regulatory headwinds in the print business
21:55 More DFIN background
29:30 What the capital markets business does and how it benefits from the M&A / SPAC boom
37:00 Comping DFIN to Workiva
39:40 How sticky is DFIN?
43:20 Breaking down DFIN's valuation
46:30 Is DFIN's shifting segment disclosure concerning?
50:15 Why is the market trading DFIN at such a low multiple?
53:25 Is management and the board fully aligned here?
57:00 DFIN's history of capital returns
1:02:25 More on DFIN's multiple
1:04:55 Closing thoughts

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