DELUXE CORP (DLX) Stock Fundamental Analysis
NYSE:DLX - New York Stock Exchange, Inc. - US2480191012 - Common Stock - Currency: USD
Taking everything into account, DLX scores 4 out of 10 in our fundamental rating. DLX was compared to 83 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
In the past year DLX was profitable.
DLX had a positive operating cash flow in the past year.
DLX had positive earnings in each of the past 5 years.
In the past 5 years DLX always reported a positive cash flow from operatings.
1.2 Ratios
DLX has a Return On Assets of 2.18%. This is comparable to the rest of the industry: DLX outperforms 55.42% of its industry peers.
With a decent Return On Equity value of 9.00%, DLX is doing good in the industry, outperforming 65.06% of the companies in the same industry.
DLX's Return On Invested Capital of 6.94% is in line compared to the rest of the industry. DLX outperforms 59.04% of its industry peers.
DLX had an Average Return On Invested Capital over the past 3 years of 6.34%. This is significantly below the industry average of 11.67%.
The 3 year average ROIC (6.34%) for DLX is below the current ROIC(6.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 9% | ||
| ROIC | 6.94% |
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
With a Profit Margin value of 2.64%, DLX perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
In the last couple of years the Profit Margin of DLX has declined.
Looking at the Operating Margin, with a value of 10.53%, DLX is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
DLX's Operating Margin has declined in the last couple of years.
The Gross Margin of DLX (52.94%) is better than 92.77% of its industry peers.
DLX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.53% | ||
| PM (TTM) | 2.64% | ||
| GM | 52.94% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLX is destroying value.
Compared to 1 year ago, DLX has more shares outstanding
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
Based on the Altman-Z score of 1.60, we must say that DLX is in the distress zone and has some risk of bankruptcy.
DLX has a Altman-Z score of 1.60. This is in the lower half of the industry: DLX underperforms 67.47% of its industry peers.
The Debt to FCF ratio of DLX is 12.64, which is on the high side as it means it would take DLX, 12.64 years of fcf income to pay off all of its debts.
DLX has a Debt to FCF ratio (12.64) which is in line with its industry peers.
A Debt/Equity ratio of 2.34 is on the high side and indicates that DLX has dependencies on debt financing.
DLX has a worse Debt to Equity ratio (2.34) than 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 12.64 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.88
WACC7.87%
2.3 Liquidity
DLX has a Current Ratio of 0.93. This is a bad value and indicates that DLX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.93, DLX is doing worse than 78.31% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that DLX may have some problems paying its short term obligations.
DLX's Quick ratio of 0.84 is on the low side compared to the rest of the industry. DLX is outperformed by 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.30% over the past year.
DLX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.54% yearly.
DLX shows a decrease in Revenue. In the last year, the revenue decreased by -2.68%.
The Revenue has been growing slightly by 1.10% on average over the past years.
EPS 1Y (TTM)0.3%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%-1.32%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%0.28%
3.2 Future
The Earnings Per Share is expected to grow by 4.93% on average over the next years.
The Revenue is expected to grow by 0.09% on average over the next years.
EPS Next Y1.08%
EPS Next 2Y4.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.88%
Revenue Next 2Y0.09%
Revenue Next 3YN/A
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 4.97, which indicates a rather cheap valuation of DLX.
96.39% of the companies in the same industry are more expensive than DLX, based on the Price/Earnings ratio.
DLX is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.50 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 98.80% of the companies in the same industry.
DLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 4.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLX is valued cheaper than 87.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DLX is valued cheaper than 95.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 5.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DLX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.62
PEG (5Y)N/A
EPS Next 2Y4.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLX has a Yearly Dividend Yield of 7.00%, which is a nice return.
Compared to an average industry Dividend Yield of 2.44, DLX pays a better dividend. On top of this DLX pays more dividend than 98.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, DLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
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
97.74% of the earnings are spent on dividend by DLX. This is not a sustainable payout ratio.
DLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.74%
EPS Next 2Y4.93%
EPS Next 3YN/A
16.36
-0.53 (-3.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.86%
Inst Owner Change0%
Ins Owners1.63%
Ins Owner Change15.06%
Market Cap731.95M
Analysts80
Price Target27.03 (65.22%)
Short Float %7.13%
Short Ratio7.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
Yearly Dividend1.23
Dividend Growth(5Y)0.62%
DP97.74%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.24%
Min EPS beat(2)-0.1%
Max EPS beat(2)4.59%
EPS beat(4)3
Avg EPS beat(4)8.18%
Min EPS beat(4)-0.1%
Max EPS beat(4)15.85%
EPS beat(8)7
Avg EPS beat(8)10.44%
EPS beat(12)9
Avg EPS beat(12)8.51%
EPS beat(16)13
Avg EPS beat(16)8.53%
Revenue beat(2)1
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)1.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.62%
Revenue beat(16)11
Avg Revenue beat(16)1.84%
PT rev (1m)0%
PT rev (3m)-8.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 4.5 | ||
| P/S | 0.34 | ||
| P/FCF | 6.2 | ||
| P/OCF | 3.36 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.8 |
EPS(TTM)3.29
EY20.11%
EPS(NY)3.63
Fwd EY22.21%
FCF(TTM)2.64
FCFY16.13%
OCF(TTM)4.87
OCFY29.78%
SpS47.46
BVpS13.91
TBVpS-25.1
PEG (NY)4.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 9% | ||
| ROCE | 10.27% | ||
| ROIC | 6.94% | ||
| ROICexc | 7.04% | ||
| ROICexgc | 37.6% | ||
| OM | 10.53% | ||
| PM (TTM) | 2.64% | ||
| GM | 52.94% | ||
| FCFM | 5.56% |
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%
ROICexcg growth 3Y-0.45%
ROICexcg 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-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 12.64 | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 62.81% | ||
| Cap/Sales | 4.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.96% | ||
| Profit Quality | 210.82% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.6 |
F-Score6
WACC7.87%
ROIC/WACC0.88
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)0.3%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%-1.32%
EPS Next Y1.08%
EPS Next 2Y4.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%0.28%
Revenue Next Year-0.88%
Revenue Next 2Y0.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.98%
EBIT growth 3Y0.23%
EBIT growth 5Y-7.07%
EBIT Next Year118.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y219.58%
FCF growth 3Y0.33%
FCF growth 5Y-14.61%
OCF growth 1Y44.77%
OCF growth 3Y-2.69%
OCF growth 5Y-7.49%