DELUXE CORP (DLX) Stock Fundamental Analysis
USA - NYSE:DLX - US2480191012 - Common Stock
19.42 USD
-0.48 (-2.41%)
19.421 USD
+0 (+0.01%)
Taking everything into account, DLX scores 4 out of 10 in our fundamental rating. DLX was compared to 84 industry peers in the Commercial Services & Supplies industry. DLX has a medium profitability rating, but doesn't score so well on its financial health evaluation. DLX is valued quite cheap, but it does not seem to be growing. Finally DLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DLX had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 2.29%, DLX is in line with its industry, outperforming 55.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.07%, DLX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.27%, DLX is in the better half of the industry, outperforming 64.29% 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 10.60%.
The last Return On Invested Capital (7.27%) for DLX is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 9.07% | ||
| ROIC | 7.27% |
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 (2.75%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DLX has declined.
DLX's Operating Margin of 11.08% is fine compared to the rest of the industry. DLX outperforms 75.00% of its industry peers.
DLX's Operating Margin has declined in the last couple of years.
DLX's Gross Margin of 52.90% is amongst the best of the industry. DLX outperforms 92.86% of its industry peers.
In the last couple of years the Gross Margin of DLX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.08% | ||
| PM (TTM) | 2.75% | ||
| GM | 52.9% |
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 below the Cost of Capital (WACC), so 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.
DLX has a worse debt/assets ratio than last year.
2.2 Solvency
DLX has an Altman-Z score of 1.68. 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 (1.68) is worse than 60.71% of its industry peers.
DLX has a debt to FCF ratio of 10.94. This is a negative value and a sign of low solvency as DLX would need 10.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.94, DLX is in line with its industry, outperforming 55.95% of the companies in the same industry.
DLX has a Debt/Equity ratio of 2.25. This is a high value indicating a heavy dependency on external financing.
DLX has a Debt to Equity ratio of 2.25. This is in the lower half of the industry: DLX underperforms 79.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.9
WACC8.08%
2.3 Liquidity
DLX has a Current Ratio of 0.94. 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 has a worse Current ratio (0.94) than 77.38% of its industry peers.
A Quick Ratio of 0.85 indicates that DLX may have some problems paying its short term obligations.
DLX has a worse Quick ratio (0.85) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
DLX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.12%.
The earnings per share for DLX have been decreasing by -13.54% on average. This is quite bad
The Revenue has decreased by -1.92% in the past 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)3.12%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%2.33%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%-3.07%
3.2 Future
DLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.92% yearly.
DLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.14% yearly.
EPS Next Y4.83%
EPS Next 2Y6.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.35%
Revenue Next 2Y0.14%
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
A Price/Earnings ratio of 5.87 indicates a rather cheap valuation of DLX.
DLX's Price/Earnings ratio is rather cheap when compared to the industry. DLX is cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. DLX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.15, which indicates a rather cheap valuation of DLX.
Based on the Price/Forward Earnings ratio, DLX is valued cheaply inside the industry as 98.81% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. DLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 5.15 |
4.2 Price Multiples
DLX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DLX is cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DLX is valued cheaper than 94.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.49 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLX has a Yearly Dividend Yield of 6.06%, which is a nice return.
DLX's Dividend Yield is rather good when compared to the industry average which is at 2.27. DLX pays more dividend than 98.81% of the companies in the same industry.
DLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
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 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
DLX pays out 94.52% 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.
DP94.52%
EPS Next 2Y6.92%
EPS Next 3YN/A
19.42
-0.48 (-2.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.79%
Inst Owner Change-1.2%
Ins Owners1.63%
Ins Owner Change5.62%
Market Cap871.76M
Analysts80
Price Target27.29 (40.53%)
Short Float %6.14%
Short Ratio7.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
Yearly Dividend1.23
Dividend Growth(5Y)0.62%
DP94.52%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.57%
Min EPS beat(2)4.59%
Max EPS beat(2)16.56%
EPS beat(4)3
Avg EPS beat(4)8.36%
Min EPS beat(4)-0.1%
Max EPS beat(4)16.56%
EPS beat(8)7
Avg EPS beat(8)8.49%
EPS beat(12)10
Avg EPS beat(12)10.41%
EPS beat(16)13
Avg EPS beat(16)7.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.47%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)1.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)6
Avg Revenue beat(12)-0.01%
Revenue beat(16)10
Avg Revenue beat(16)0.89%
PT rev (1m)0.94%
PT rev (3m)0.94%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.71%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 5.15 | ||
| P/S | 0.41 | ||
| P/FCF | 6.49 | ||
| P/OCF | 3.8 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.08 |
EPS(TTM)3.31
EY17.04%
EPS(NY)3.77
Fwd EY19.43%
FCF(TTM)2.99
FCFY15.42%
OCF(TTM)5.11
OCFY26.32%
SpS46.93
BVpS14.22
TBVpS-24.47
PEG (NY)1.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 9.07% | ||
| ROCE | 10.77% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.36% | ||
| ROICexgc | 38.91% | ||
| OM | 11.08% | ||
| PM (TTM) | 2.75% | ||
| GM | 52.9% | ||
| FCFM | 6.38% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 10.94 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 62.99% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.7% | ||
| Profit Quality | 232.03% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.68 |
F-Score6
WACC8.08%
ROIC/WACC0.9
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)3.12%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%2.33%
EPS Next Y4.83%
EPS Next 2Y6.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%-3.07%
Revenue Next Year-1.35%
Revenue Next 2Y0.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.46%
EBIT growth 3Y0.23%
EBIT growth 5Y-7.07%
EBIT Next Year118.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y185.51%
FCF growth 3Y0.33%
FCF growth 5Y-14.61%
OCF growth 1Y37.65%
OCF growth 3Y-2.69%
OCF growth 5Y-7.49%