DELUXE CORP (DLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLX - US2480191012 - Common Stock
20.97 USD
+0.59 (+2.89%)
20.97 USD
0 (0%)
Taking everything into account, DLX scores 4 out of 10 in our fundamental rating. DLX was compared to 82 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of DLX while its profitability can be described as average. DLX is cheap, but on the other hand it scores bad on growth. DLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DLX had positive earnings in the past year.
DLX had a positive operating cash flow in the past year.
Each year in the past 5 years DLX has been profitable.
In the past 5 years DLX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.20%, DLX is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
DLX's Return On Equity of 12.46% is fine compared to the rest of the industry. DLX outperforms 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.98%, DLX is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
DLX had an Average Return On Invested Capital over the past 3 years of 6.34%. This is below the industry average of 10.51%.
The last Return On Invested Capital (7.98%) for DLX is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 12.46% | ||
| ROIC | 7.98% |
ROA(3y)1.61%
ROA(5y)1.47%
ROE(3y)7.88%
ROE(5y)7.23%
ROIC(3y)6.34%
ROIC(5y)7.11%
1.3 Margins
DLX's Profit Margin of 3.91% is in line compared to the rest of the industry. DLX outperforms 58.54% of its industry peers.
In the last couple of years the Profit Margin of DLX has declined.
Looking at the Operating Margin, with a value of 12.18%, DLX is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
In the last couple of years the Operating Margin of DLX has declined.
DLX's Gross Margin of 53.04% is amongst the best of the industry. DLX outperforms 92.68% of its industry peers.
DLX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.18% | ||
| PM (TTM) | 3.91% | ||
| GM | 53.04% |
OM growth 3Y-1.37%
OM growth 5Y-8.08%
PM growth 3Y-7.02%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2.26%
2. Health
2.1 Basic Checks
DLX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DLX has more shares outstanding than it did 1 year ago.
DLX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DLX has a worse debt to assets ratio.
2.2 Solvency
DLX has an Altman-Z score of 1.71. This is a bad value and indicates that DLX is not financially healthy and even has some risk of bankruptcy.
DLX has a Altman-Z score (1.71) which is comparable to the rest of the industry.
The Debt to FCF ratio of DLX is 12.14, which is on the high side as it means it would take DLX, 12.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DLX (12.14) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.13 is on the high side and indicates that DLX has dependencies on debt financing.
DLX's Debt to Equity ratio of 2.13 is on the low side compared to the rest of the industry. DLX is outperformed by 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 12.14 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.01
WACC7.91%
2.3 Liquidity
DLX has a Current Ratio of 0.99. This is a bad value and indicates that DLX is not financially healthy enough and could expect problems in meeting its short term obligations.
DLX's Current ratio of 0.99 is on the low side compared to the rest of the industry. DLX is outperformed by 74.39% of its industry peers.
A Quick Ratio of 0.91 indicates that DLX may have some problems paying its short term obligations.
DLX has a Quick ratio of 0.91. This is in the lower half of the industry: DLX underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
DLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.20%, which is quite good.
The earnings per share for DLX have been decreasing by -13.54% on average. This is quite bad
Looking at the last year, DLX shows a decrease in Revenue. The Revenue has decreased by -0.94% in the last year.
Measured over the past years, DLX shows a small growth in Revenue. The Revenue has been growing by 1.10% on average per year.
EPS 1Y (TTM)9.2%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%29.76%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%2.24%
3.2 Future
Based on estimates for the next years, DLX will show a small growth in Earnings Per Share. The EPS will grow by 7.07% on average per year.
The Revenue is expected to grow by 0.42% on average over the next years.
EPS Next Y4.83%
EPS Next 2Y6.92%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue Next Year-1.35%
Revenue Next 2Y0.14%
Revenue Next 3Y0.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.89, which indicates a rather cheap valuation of DLX.
Compared to the rest of the industry, the Price/Earnings ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 95.12% of the companies listed in the same industry.
DLX is valuated cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.56 indicates a rather cheap valuation of DLX.
DLX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLX is cheaper than 96.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DLX to the average of the S&P500 Index (36.20), we can say DLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.89 | ||
| Fwd PE | 5.56 |
4.2 Price Multiples
91.46% of the companies in the same industry are more expensive than DLX, based on the Enterprise Value to EBITDA ratio.
91.46% of the companies in the same industry are more expensive than DLX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DLX may justify a higher PE ratio.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.88%, DLX is a good candidate for dividend investing.
DLX's Dividend Yield is rather good when compared to the industry average which is at 2.48. DLX pays more dividend than 97.56% of the companies in the same industry.
DLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
The dividend of DLX has a limited annual growth rate of 0.62%.
DLX has been paying a dividend for at least 10 years, so it has a reliable track record.
DLX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.62%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
66.44% of the earnings are spent on dividend by DLX. This is not a sustainable payout ratio.
The dividend of DLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.44%
EPS Next 2Y6.92%
EPS Next 3Y7.07%
20.97
+0.59 (+2.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.03%
Inst Owner Change-0.46%
Ins Owners1.68%
Ins Owner Change1.87%
Market Cap943.86M
Revenue(TTM)2.12B
Net Income(TTM)82.73M
Analysts80
Price Target28.9 (37.82%)
Short Float %6.93%
Short Ratio10.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend1.23
Dividend Growth(5Y)0.62%
DP66.44%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.68%
Min EPS beat(2)14.81%
Max EPS beat(2)16.56%
EPS beat(4)3
Avg EPS beat(4)8.96%
Min EPS beat(4)-0.1%
Max EPS beat(4)16.56%
EPS beat(8)7
Avg EPS beat(8)9.57%
EPS beat(12)10
Avg EPS beat(12)11.24%
EPS beat(16)13
Avg EPS beat(16)8.73%
Revenue beat(2)1
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)0.44%
Revenue beat(4)2
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)1.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)6
Avg Revenue beat(12)-0.1%
Revenue beat(16)10
Avg Revenue beat(16)0.84%
PT rev (1m)5.92%
PT rev (3m)5.92%
EPS NQ rev (1m)-6.96%
EPS NQ rev (3m)-6.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.89 | ||
| Fwd PE | 5.56 | ||
| P/S | 0.45 | ||
| P/FCF | 7.9 | ||
| P/OCF | 4.13 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.9 |
EPS(TTM)3.56
EY16.98%
EPS(NY)3.77
Fwd EY17.99%
FCF(TTM)2.65
FCFY12.65%
OCF(TTM)5.08
OCFY24.23%
SpS47.07
BVpS14.75
TBVpS-24.26
PEG (NY)1.22
PEG (5Y)N/A
Graham Number34.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 12.46% | ||
| ROCE | 11.81% | ||
| ROIC | 7.98% | ||
| ROICexc | 8.07% | ||
| ROICexgc | 43.22% | ||
| OM | 12.18% | ||
| PM (TTM) | 3.91% | ||
| GM | 53.04% | ||
| FCFM | 5.64% |
ROA(3y)1.61%
ROA(5y)1.47%
ROE(3y)7.88%
ROE(5y)7.23%
ROIC(3y)6.34%
ROIC(5y)7.11%
ROICexc(3y)6.48%
ROICexc(5y)7.41%
ROICexgc(3y)36.57%
ROICexgc(5y)37.66%
ROCE(3y)9.38%
ROCE(5y)10.53%
ROICexgc growth 3Y-0.45%
ROICexgc growth 5Y-8.74%
ROICexc growth 3Y2.9%
ROICexc growth 5Y-14.14%
OM growth 3Y-1.37%
OM growth 5Y-8.08%
PM growth 3Y-7.02%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2.26%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 12.14 | ||
| Debt/EBITDA | 3.56 | ||
| Cap/Depr | 78.7% | ||
| Cap/Sales | 5.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.61% | ||
| Profit Quality | 144.34% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.71 |
F-Score7
WACC7.91%
ROIC/WACC1.01
Cap/Depr(3y)59.84%
Cap/Depr(5y)64.25%
Cap/Sales(3y)4.64%
Cap/Sales(5y)4.71%
Profit Quality(3y)229.97%
Profit Quality(5y)496.64%
High Growth Momentum
Growth
EPS 1Y (TTM)9.2%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%29.76%
EPS Next Y4.83%
EPS Next 2Y6.92%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%2.24%
Revenue Next Year-1.35%
Revenue Next 2Y0.14%
Revenue Next 3Y0.42%
Revenue Next 5YN/A
EBIT growth 1Y21.25%
EBIT growth 3Y0.23%
EBIT growth 5Y-7.07%
EBIT Next Year121.32%
EBIT Next 3Y33.65%
EBIT Next 5YN/A
FCF growth 1Y78.98%
FCF growth 3Y0.33%
FCF growth 5Y-14.61%
OCF growth 1Y24.95%
OCF growth 3Y-2.69%
OCF growth 5Y-7.49%
DELUXE CORP / DLX FAQ
What is the fundamental rating for DLX stock?
ChartMill assigns a fundamental rating of 4 / 10 to DLX.
What is the valuation status for DLX stock?
ChartMill assigns a valuation rating of 8 / 10 to DELUXE CORP (DLX). This can be considered as Undervalued.
Can you provide the profitability details for DELUXE CORP?
DELUXE CORP (DLX) has a profitability rating of 6 / 10.
Can you provide the financial health for DLX stock?
The financial health rating of DELUXE CORP (DLX) is 1 / 10.
Is the dividend of DELUXE CORP sustainable?
The dividend rating of DELUXE CORP (DLX) is 8 / 10 and the dividend payout ratio is 66.44%.