THE DUN & BRADSTREET CORP. $74 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 53.9 million; Market cap: $4.0 billion; WSSF Rating: Average) provides credit reports on individual companies. Clients use these reports to make lending and buying decisions.
Despite the current turmoil, Dun & Bradstreet’s third-quarter earnings rose 14.1%, to $1.13 a share from $0.99 a year earlier. These amounts exclude unusual items. Revenue rose 9.2%, to $409.2 million from $374.7 million. Long-term debt of $684.0 million is equal to about three years’ cash flow.
The company has launched several new innovative products that should expand long-term earnings. A good example is a new service that lets clients access its information products using their mobile phones. The company can create innovative new products like this from its existing databases at little cost.
The stock now trades at 14.2 times its likely 2008 earnings of $5.22 a share. The $1.20 dividend yields 1.6%.
Dun & Bradstreet is a buy.
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