DELUXE CORP (DLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLX - US2480191012 - Common Stock
23.47 USD
+0.35 (+1.51%)
23.47 USD
0 (0%)
Taking everything into account, DLX scores 5 out of 10 in our fundamental rating. DLX was compared to 80 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 valued quite cheap, but it does not seem to be growing. DLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DLX was profitable.
In the past year DLX had a positive cash flow from operations.
DLX had positive earnings in each of the past 5 years.
Each year in the past 5 years DLX had a positive operating cash flow.
1.2 Ratios
DLX has a better Return On Assets (3.20%) than 66.25% of its industry peers.
DLX's Return On Equity of 12.46% is fine compared to the rest of the industry. DLX outperforms 71.25% of its industry peers.
DLX has a better Return On Invested Capital (7.98%) than 71.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLX is below the industry average of 10.60%.
The 3 year average ROIC (6.34%) for DLX is below the current ROIC(7.98%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 3.91%. This is in the better half of the industry: DLX outperforms 62.50% 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 77.50% of the companies in the same industry.
In the last couple of years the Operating Margin of DLX has declined.
With an excellent Gross Margin value of 53.04%, DLX belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Gross Margin of DLX has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DLX is still creating some value.
Compared to 1 year ago, DLX has more shares outstanding
Compared to 5 years ago, DLX has more shares outstanding
Compared to 1 year ago, DLX has a worse debt to assets ratio.
2.2 Solvency
DLX has an Altman-Z score of 1.76. This is a bad value and indicates that DLX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DLX (1.76) is comparable to the rest of the industry.
DLX has a debt to FCF ratio of 12.14. This is a negative value and a sign of low solvency as DLX would need 12.14 years to pay back of 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.
The Debt to Equity ratio of DLX (2.13) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 12.14 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.01
WACC7.87%
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.
The Current ratio of DLX (0.99) is worse than 75.00% of its industry peers.
A Quick Ratio of 0.91 indicates that DLX may have some problems paying its short term obligations.
DLX's Quick ratio of 0.91 is on the low side compared to the rest of the industry. DLX is outperformed by 71.25% 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.
DLX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.54% yearly.
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
The Earnings Per Share is expected to grow by 7.07% on average over the next years.
The Revenue is expected to grow by 0.42% on average over the next years.
EPS Next Y8.65%
EPS Next 2Y6.22%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue Next Year-0.84%
Revenue Next 2Y-0.07%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.59, which indicates a rather cheap valuation of DLX.
Based on the Price/Earnings ratio, DLX is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
DLX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 6.30, the valuation of DLX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, DLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLX is valued cheaper than 91.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DLX is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.85 | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DLX may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y6.22%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.19%, DLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.89, DLX pays a better dividend. On top of this DLX pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, DLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
5.2 History
The dividend of DLX has a limited annual growth rate of 0.62%.
DLX has paid a dividend for at least 10 years, which is a reliable track record.
DLX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.62%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
DLX pays out 66.44% of its income as dividend. 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 2Y6.22%
EPS Next 3Y7.07%
23.47
+0.35 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.23%
Inst Owner Change0%
Ins Owners1.7%
Ins Owner Change1.8%
Market Cap1.06B
Revenue(TTM)2.12B
Net Income(TTM)82.73M
Analysts80
Price Target29.24 (24.58%)
Short Float %6.11%
Short Ratio8.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
Yearly Dividend1.23
Dividend Growth(5Y)0.62%
DP66.44%
Div Incr Years0
Div Non Decr Years17
Ex-DateN/A
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)4.24%
PT rev (3m)7.17%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-7.15%
EPS NY rev (1m)1.5%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.5 | ||
| P/FCF | 8.85 | ||
| P/OCF | 4.62 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.25 |
EPS(TTM)3.56
EY15.17%
EPS(NY)3.72
Fwd EY15.87%
FCF(TTM)2.65
FCFY11.3%
OCF(TTM)5.08
OCFY21.65%
SpS47.07
BVpS14.75
TBVpS-24.26
PEG (NY)0.76
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 | 1.76 |
F-Score7
WACC7.87%
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 Y8.65%
EPS Next 2Y6.22%
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-0.84%
Revenue Next 2Y-0.07%
Revenue Next 3Y0.42%
Revenue Next 5YN/A
EBIT growth 1Y21.25%
EBIT growth 3Y0.23%
EBIT growth 5Y-7.07%
EBIT Next Year124.39%
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 5 / 10 to DLX.
Can you provide the valuation status for DELUXE CORP?
ChartMill assigns a valuation rating of 9 / 10 to DELUXE CORP (DLX). This can be considered as Undervalued.
How profitable is DELUXE CORP (DLX) stock?
DELUXE CORP (DLX) has a profitability rating of 6 / 10.
What is the valuation of DELUXE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DELUXE CORP (DLX) is 6.59 and the Price/Book (PB) ratio is 1.59.
Can you provide the financial health for DLX stock?
The financial health rating of DELUXE CORP (DLX) is 1 / 10.