DELUXE CORP (DLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLX - US2480191012 - Common Stock
22.33 USD
-0.33 (-1.46%)
22.33 USD
0 (0%)
Overall DLX gets a fundamental rating of 5 out of 10. We evaluated DLX against 81 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 each 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 3.20% is fine compared to the rest of the industry. DLX outperforms 66.67% of its industry peers.
DLX has a Return On Equity of 12.46%. This is in the better half of the industry: DLX outperforms 71.60% 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 70.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLX is below the industry average of 10.33%.
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 better Profit Margin (3.91%) than 61.73% of its industry peers.
DLX's Profit Margin has declined in the last couple of years.
The Operating Margin of DLX (12.18%) is better than 77.78% of its industry peers.
DLX's Operating Margin has declined in the last couple of years.
DLX's Gross Margin of 53.04% is amongst the best of the industry. DLX outperforms 93.83% of its industry peers.
DLX's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DLX is creating some value.
DLX has more shares outstanding than it did 1 year ago.
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
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.
DLX's Altman-Z score of 1.74 is in line compared to the rest of the industry. DLX outperforms 46.91% of its industry peers.
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.
With a Debt to FCF ratio value of 12.14, DLX perfoms like the industry average, outperforming 56.79% of the companies in the same industry.
DLX has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
DLX's Debt to Equity ratio of 2.13 is on the low side compared to the rest of the industry. DLX is outperformed by 79.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 12.14 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.02
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.99 indicates that DLX may have some problems paying its short term obligations.
The Current ratio of DLX (0.99) is worse than 72.84% of its industry peers.
A Quick Ratio of 0.91 indicates that DLX may have some problems paying its short term obligations.
DLX has a Quick ratio of 0.91. This is in the lower half of the industry: DLX underperforms 69.14% 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.
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
The Earnings Per Share is expected to grow by 7.07% on average over the next years.
Based on estimates for the next years, DLX will show a small growth in Revenue. The Revenue will grow by 0.42% on average per year.
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
Based on the Price/Earnings ratio of 6.27, the valuation of DLX can be described as very cheap.
91.36% 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 26.51. DLX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.00, the valuation of DLX can be described as very cheap.
DLX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLX is cheaper than 93.83% 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 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 6 |
4.2 Price Multiples
DLX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DLX is cheaper than 91.36% of the companies in the same industry.
DLX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLX is cheaper than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 6.12 |
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)0.73
PEG (5Y)N/A
EPS Next 2Y6.22%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, 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 96.30% 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 2.00.
| 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
66.44% 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.
DP66.44%
EPS Next 2Y6.22%
EPS Next 3Y7.07%
22.33
-0.33 (-1.46%)
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 Change1.8%
Market Cap1.01B
Revenue(TTM)2.12B
Net Income(TTM)82.73M
Analysts80
Price Target29.24 (30.94%)
Short Float %6.11%
Short Ratio8.17
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-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)1.18%
PT rev (3m)7.17%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-7.15%
EPS NY rev (1m)3.65%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 6 | ||
| P/S | 0.47 | ||
| P/FCF | 8.42 | ||
| P/OCF | 4.4 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.12 |
EPS(TTM)3.56
EY15.94%
EPS(NY)3.72
Fwd EY16.68%
FCF(TTM)2.65
FCFY11.88%
OCF(TTM)5.08
OCFY22.75%
SpS47.07
BVpS14.75
TBVpS-24.26
PEG (NY)0.73
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
WACC7.85%
ROIC/WACC1.02
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 6.27 and the Price/Book (PB) ratio is 1.51.
Can you provide the financial health for DLX stock?
The financial health rating of DELUXE CORP (DLX) is 1 / 10.