DELUXE CORP (DLX) Stock Fundamental Analysis
NYSE:DLX - New York Stock Exchange, Inc. - US2480191012 - Common Stock - Currency: USD
DLX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. While DLX is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
DLX had positive earnings in 4 of the past 5 years.
DLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DLX's Return On Assets of 2.10% is in line compared to the rest of the industry. DLX outperforms 59.76% of its industry peers.
With a decent Return On Equity value of 9.00%, DLX is doing good in the industry, outperforming 65.85% of the companies in the same industry.
The Return On Invested Capital of DLX (6.96%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLX is below the industry average of 10.07%.
The last Return On Invested Capital (6.96%) for DLX is above the 3 year average (6.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 9% | ||
| ROIC | 6.96% |
ROA(3y)1.67%
ROA(5y)-0.96%
ROE(3y)8.68%
ROE(5y)-1.47%
ROIC(3y)6.54%
ROIC(5y)9.08%
1.3 Margins
With a Profit Margin value of 2.58%, DLX perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
DLX's Profit Margin has declined in the last couple of years.
DLX has a better Operating Margin (9.95%) than 67.07% of its industry peers.
DLX's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 53.20%, DLX belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
DLX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.95% | ||
| PM (TTM) | 2.58% | ||
| GM | 53.2% |
OM growth 3Y-9.34%
OM growth 5Y-12.13%
PM growth 3Y34.28%
PM growth 5Y-30.73%
GM growth 3Y-3.59%
GM growth 5Y-2.56%
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.
Compared to 1 year ago, DLX has more shares outstanding
Compared to 5 years ago, DLX has less shares outstanding
The debt/assets ratio for DLX has been reduced compared to a year ago.
2.2 Solvency
DLX has an Altman-Z score of 1.63. This is a bad value and indicates that DLX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.63, DLX is doing worse than 63.41% of the companies in the same industry.
The Debt to FCF ratio of DLX is 11.98, which is on the high side as it means it would take DLX, 11.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.98, DLX is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 2.38 is on the high side and indicates that DLX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.38, DLX is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 11.98 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.84
WACC8.27%
2.3 Liquidity
DLX has a Current Ratio of 0.92. 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 (0.92) than 80.49% of its industry peers.
A Quick Ratio of 0.83 indicates that DLX may have some problems paying its short term obligations.
DLX's Quick ratio of 0.83 is on the low side compared to the rest of the industry. DLX is outperformed by 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for DLX have decreased by -8.43% in the last year.
The earnings per share for DLX have been decreasing by -10.21% on average. This is quite bad
DLX shows a decrease in Revenue. In the last year, the revenue decreased by -3.62%.
Measured over the past years, DLX shows a small growth in Revenue. The Revenue has been growing by 1.87% on average per year.
EPS 1Y (TTM)-8.43%
EPS 3Y-13.22%
EPS 5Y-10.21%
EPS Q2Q%6.33%
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y6.97%
Revenue growth 5Y1.87%
Sales Q2Q%-1.75%
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 3.65% on average per year.
DLX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.08% yearly.
EPS Next Y-0.6%
EPS Next 2Y1.63%
EPS Next 3Y3.65%
EPS Next 5YN/A
Revenue Next Year-2.8%
Revenue Next 2Y-0.48%
Revenue Next 3Y-0.08%
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.
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
Based on the Price/Earnings ratio of 7.04, the valuation of DLX can be described as very cheap.
DLX's Price/Earnings ratio is rather cheap when compared to the industry. DLX is cheaper than 93.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. DLX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.69 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 97.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DLX to the average of the S&P500 Index (92.74), we can say DLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.04 | ||
| Fwd PE | 6.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLX is valued cheaply inside the industry as 86.59% of the companies are valued more expensively.
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 | 7.94 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.63%
EPS Next 3Y3.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.12%, DLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.06, DLX pays a better dividend. On top of this DLX pays more dividend than 98.78% of the companies listed in the same industry.
DLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
The dividend of DLX has a limited annual growth rate of 0.03%.
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)0.03%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
97.95% 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.
DP97.95%
EPS Next 2Y1.63%
EPS Next 3Y3.65%
DELUXE CORP
NYSE:DLX (2/5/2025, 9:42:59 AM)
22.9472
+0.09 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.35%
Inst Owner Change-0.24%
Ins Owners1.52%
Ins Owner Change0.55%
Market Cap1.02B
Analysts80
Price Target28.48 (24.11%)
Short Float %5.68%
Short Ratio10.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Yearly Dividend1.23
Dividend Growth(5Y)0.03%
DP97.95%
Div Incr Years0
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.12%
Min EPS beat(2)12.39%
Max EPS beat(2)15.85%
EPS beat(4)4
Avg EPS beat(4)10.17%
Min EPS beat(4)6.08%
Max EPS beat(4)15.85%
EPS beat(8)7
Avg EPS beat(8)12.38%
EPS beat(12)10
Avg EPS beat(12)8.65%
EPS beat(16)14
Avg EPS beat(16)9.79%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)0.64%
Revenue beat(8)4
Avg Revenue beat(8)0.3%
Revenue beat(12)8
Avg Revenue beat(12)1.42%
Revenue beat(16)11
Avg Revenue beat(16)2.24%
PT rev (1m)0%
PT rev (3m)-6.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.26%
EPS NY rev (1m)0%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.04 | ||
| Fwd PE | 6.69 | ||
| P/S | 0.48 | ||
| P/FCF | 7.94 | ||
| P/OCF | 4.67 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.49 |
EPS(TTM)3.26
EY14.21%
EPS(NY)3.43
Fwd EY14.94%
FCF(TTM)2.89
FCFY12.59%
OCF(TTM)4.91
OCFY21.42%
SpS48.31
BVpS13.84
TBVpS-25.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 9% | ||
| ROCE | 9.7% | ||
| ROIC | 6.96% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 38.96% | ||
| OM | 9.95% | ||
| PM (TTM) | 2.58% | ||
| GM | 53.2% | ||
| FCFM | 5.98% |
ROA(3y)1.67%
ROA(5y)-0.96%
ROE(3y)8.68%
ROE(5y)-1.47%
ROIC(3y)6.54%
ROIC(5y)9.08%
ROICexc(3y)6.68%
ROICexc(5y)9.52%
ROICexgc(3y)39.03%
ROICexgc(5y)44.35%
ROCE(3y)9.11%
ROCE(5y)12.64%
ROICexcg growth 3Y-3.98%
ROICexcg growth 5Y-12.24%
ROICexc growth 3Y-17.66%
ROICexc growth 5Y-13.42%
OM growth 3Y-9.34%
OM growth 5Y-12.13%
PM growth 3Y34.28%
PM growth 5Y-30.73%
GM growth 3Y-3.59%
GM growth 5Y-2.56%
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 11.98 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 52.03% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.47% | ||
| Profit Quality | 231.88% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.63 |
F-Score6
WACC8.27%
ROIC/WACC0.84
Cap/Depr(3y)65.91%
Cap/Depr(5y)63.42%
Cap/Sales(3y)5%
Cap/Sales(5y)4.49%
Profit Quality(3y)219.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.43%
EPS 3Y-13.22%
EPS 5Y-10.21%
EPS Q2Q%6.33%
EPS Next Y-0.6%
EPS Next 2Y1.63%
EPS Next 3Y3.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y6.97%
Revenue growth 5Y1.87%
Sales Q2Q%-1.75%
Revenue Next Year-2.8%
Revenue Next 2Y-0.48%
Revenue Next 3Y-0.08%
Revenue Next 5YN/A
EBIT growth 1Y-0.35%
EBIT growth 3Y-3.02%
EBIT growth 5Y-10.49%
EBIT Next Year160.97%
EBIT Next 3Y41.17%
EBIT Next 5YN/A
FCF growth 1Y58.37%
FCF growth 3Y-12.13%
FCF growth 5Y-18.83%
OCF growth 1Y17.61%
OCF growth 3Y-3.04%
OCF growth 5Y-10.18%