Market News

Dun & Bradstreet to Divest Assets of German Unit

Business decisioning data and analytics provider Dun & Bradstreet Holdings, Inc. (DNB) has agreed to divest the assets of its business-to-customer (B2C) marketing solutions unit in Germany. The transaction is expected to close in the second quarter of 2022.

The non-core German unit garnered about $7 million in revenue in 2021. DNB does not expect the transaction to have a significant impact on its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 2022. Further, it will eliminate revenue from this unit for the current and previous year while reporting organic growth, effective from January 1.

Hedge Fund Activity

TipRanks data points that Wall Street’s top hedge funds have increased holdings in Dun & Bradstreet by 998,400 shares in the last quarter, indicating a very positive hedge fund confidence signal in the stock based on activities of five hedge funds. Notably, Ricky Sandler’s Eminence Capital has a holding worth about $136 million in the stock.

Valuation Speaks

Let us consider some key metrics for DNB and how it fares against the broader industry. It has an EBITDA margin of 33.6%, against to the industry median of 13.3%, indicating that the company has better optimized its costs versus its peers.

Conversely, a return on total capital of 1.94% implies that the company’s peers are better at deploying their capital, as the median industry figure is 6.8%.

Further, the forward non-GAAP P/E multiple for DNB is at 15.30, while the median figure for the industry is 18.14, indicating that the company’s current share price level is less expensive versus its peers. That’s after a 13.3% slide in share prices so far this year.

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