DELUXE CORP (DLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLX - US2480191012 - Common Stock
22.42 USD
+0.13 (+0.58%)
22.42 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DLX. 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 has a bad growth rate and is valued cheaply. Finally 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.
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
DLX's Return On Assets of 3.20% is fine compared to the rest of the industry. DLX outperforms 63.41% of its industry peers.
DLX has a better Return On Equity (12.46%) than 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 71.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DLX is below the industry average of 10.13%.
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 has a Profit Margin of 3.91%. This is in the better half of the industry: DLX outperforms 60.98% of its industry peers.
In the last couple of years the Profit Margin of DLX has declined.
DLX's Operating Margin of 12.18% is fine compared to the rest of the industry. DLX outperforms 79.27% of its industry peers.
DLX's Operating Margin has declined in the last couple of years.
DLX has a better Gross Margin (53.04%) than 92.68% of its industry peers.
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
DLX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DLX has been increased compared to 1 year ago.
Compared to 5 years ago, DLX has more shares outstanding
DLX has a worse debt/assets ratio than last year.
2.2 Solvency
DLX has an Altman-Z score of 1.74. 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 (1.74) 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.
With a Debt to Equity ratio value of 2.13, DLX is not doing good in the industry: 81.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 12.14 | ||
| Altman-Z | 1.74 |
ROIC/WACC1
WACC7.98%
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.
With a Quick ratio value of 0.91, DLX is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| 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
The Revenue has decreased by -0.94% in the past year.
DLX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.10% yearly.
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.
DLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.42% yearly.
EPS Next Y7.04%
EPS Next 2Y7.42%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue Next Year-0.97%
Revenue Next 2Y0.05%
Revenue Next 3Y0.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 6.30, the valuation of DLX can be described as very cheap.
93.90% of the companies in the same industry are more expensive than DLX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.55. DLX is valued rather cheaply when compared to this.
DLX is valuated cheaply with a Price/Forward Earnings ratio of 5.89.
96.34% of the companies in the same industry are more expensive than DLX, based on the Price/Forward Earnings ratio.
DLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 91.46% of the companies listed in the same industry.
92.68% 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 | 8.45 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
DLX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y7.42%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
DLX has a Yearly Dividend Yield of 5.38%, which is a nice return.
Compared to an average industry Dividend Yield of 0.93, DLX pays a better dividend. On top of this DLX pays more dividend than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, DLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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.
DLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.44%
EPS Next 2Y7.42%
EPS Next 3Y7.07%
22.42
+0.13 (+0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.06%
Inst Owner Change-0.46%
Ins Owners1.7%
Ins Owner Change1.87%
Market Cap1.01B
Revenue(TTM)2.12B
Net Income(TTM)82.73M
Analysts80
Price Target28.05 (25.11%)
Short Float %6.93%
Short Ratio10.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)2.8%
PT rev (3m)2.8%
EPS NQ rev (1m)-3.2%
EPS NQ rev (3m)-7.24%
EPS NY rev (1m)2.12%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.89 | ||
| P/S | 0.48 | ||
| P/FCF | 8.45 | ||
| P/OCF | 4.41 | ||
| P/B | 1.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.12 |
EPS(TTM)3.56
EY15.88%
EPS(NY)3.81
Fwd EY16.98%
FCF(TTM)2.65
FCFY11.83%
OCF(TTM)5.08
OCFY22.66%
SpS47.07
BVpS14.75
TBVpS-24.26
PEG (NY)0.89
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 | 1.74 |
F-Score7
WACC7.98%
ROIC/WACC1
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 Y7.04%
EPS Next 2Y7.42%
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-0.97%
Revenue Next 2Y0.05%
Revenue Next 3Y0.42%
Revenue Next 5YN/A
EBIT growth 1Y21.25%
EBIT growth 3Y0.23%
EBIT growth 5Y-7.07%
EBIT Next Year124.94%
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.
What is the valuation status for DLX stock?
ChartMill assigns a valuation rating of 9 / 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%.