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. DLX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Each year in the past 5 years DLX had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.18%, DLX perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
DLX's Return On Equity of 9.00% is fine compared to the rest of the industry. DLX outperforms 66.67% of its industry peers.
The Return On Invested Capital of DLX (6.94%) is better than 60.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLX is significantly below the industry average of 11.63%.
The last Return On Invested Capital (6.94%) for DLX is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 9% | ||
| ROIC | 6.94% |
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's Profit Margin of 2.64% is in line compared to the rest of the industry. DLX outperforms 57.14% of its industry peers.
DLX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.53%, DLX is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
DLX's Operating Margin has declined in the last couple of years.
The Gross Margin of DLX (52.94%) is better than 92.86% of its industry peers.
In the last couple of years the Gross Margin of DLX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.53% | ||
| PM (TTM) | 2.64% | ||
| GM | 52.94% |
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) below the Cost of Capital (WACC), DLX is destroying value.
The number of shares outstanding for DLX has been increased compared to 1 year ago.
The number of shares outstanding for DLX has been increased compared to 5 years ago.
Compared to 1 year ago, DLX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that DLX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.58, DLX is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
The Debt to FCF ratio of DLX is 12.64, which is on the high side as it means it would take DLX, 12.64 years of fcf income to pay off all of its debts.
DLX has a Debt to FCF ratio (12.64) which is in line with its industry peers.
A Debt/Equity ratio of 2.34 is on the high side and indicates that DLX has dependencies on debt financing.
DLX's Debt to Equity ratio of 2.34 is on the low side compared to the rest of the industry. DLX is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 12.64 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.93
WACC7.47%
2.3 Liquidity
A Current Ratio of 0.93 indicates that DLX may have some problems paying its short term obligations.
With a Current ratio value of 0.93, DLX is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
DLX has a Quick Ratio of 0.93. 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 Quick ratio of 0.84 is on the low side compared to the rest of the industry. DLX is outperformed by 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.12% over the past year.
Measured over the past years, DLX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.54% on average per year.
Looking at the last year, DLX shows a decrease in Revenue. The Revenue has decreased by -3.22% 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)3.12%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%2.33%
Revenue 1Y (TTM)-3.22%
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 4.93% yearly.
Based on estimates for the next years, DLX will show a small growth in Revenue. The Revenue will grow by 0.09% on average per year.
EPS Next Y1.08%
EPS Next 2Y4.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.88%
Revenue Next 2Y0.09%
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
DLX is valuated cheaply with a Price/Earnings ratio of 5.80.
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.
When comparing the Price/Earnings ratio of DLX to the average of the S&P500 Index (26.54), we can say DLX is valued rather cheaply.
The Price/Forward Earnings ratio is 5.29, which indicates a rather cheap valuation of DLX.
Based on the Price/Forward Earnings ratio, DLX is valued cheaper than 98.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.28. DLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 5.29 |
4.2 Price Multiples
DLX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DLX is cheaper than 92.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 94.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.28 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DLX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DLX may justify a higher PE ratio.
PEG (NY)5.39
PEG (5Y)N/A
EPS Next 2Y4.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.39%, DLX is a good candidate for dividend investing.
DLX's Dividend Yield is rather good when compared to the industry average which is at 2.47. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
5.2 History
The dividend of DLX has a limited annual growth rate of 0.62%.
DLX has been paying a dividend for at least 10 years, so it has 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
97.74% of the earnings are spent on dividend by DLX. This is not a sustainable payout ratio.
DLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.74%
EPS Next 2Y4.93%
EPS Next 3YN/A
19.21
+3.18 (+19.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.86%
Inst Owner Change-2.47%
Ins Owners1.63%
Ins Owner Change11.98%
Market Cap859.46M
Analysts80
Price Target27.03 (40.71%)
Short Float %6.76%
Short Ratio7.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
Yearly Dividend1.23
Dividend Growth(5Y)0.62%
DP97.74%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.24%
Min EPS beat(2)-0.1%
Max EPS beat(2)4.59%
EPS beat(4)3
Avg EPS beat(4)8.18%
Min EPS beat(4)-0.1%
Max EPS beat(4)15.85%
EPS beat(8)7
Avg EPS beat(8)10.44%
EPS beat(12)9
Avg EPS beat(12)8.51%
EPS beat(16)13
Avg EPS beat(16)8.53%
Revenue beat(2)1
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)1.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.62%
Revenue beat(16)11
Avg Revenue beat(16)1.84%
PT rev (1m)0%
PT rev (3m)-8.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 5.29 | ||
| P/S | 0.4 | ||
| P/FCF | 7.28 | ||
| P/OCF | 3.94 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.7 |
EPS(TTM)3.31
EY17.23%
EPS(NY)3.63
Fwd EY18.91%
FCF(TTM)2.64
FCFY13.74%
OCF(TTM)4.87
OCFY25.36%
SpS47.46
BVpS13.91
TBVpS-25.1
PEG (NY)5.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 9% | ||
| ROCE | 10.27% | ||
| ROIC | 6.94% | ||
| ROICexc | 7.04% | ||
| ROICexgc | 37.6% | ||
| OM | 10.53% | ||
| PM (TTM) | 2.64% | ||
| GM | 52.94% | ||
| FCFM | 5.56% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 12.64 | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 62.81% | ||
| Cap/Sales | 4.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.96% | ||
| Profit Quality | 210.82% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.58 |
F-Score6
WACC7.47%
ROIC/WACC0.93
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 Y1.08%
EPS Next 2Y4.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.22%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%-3.07%
Revenue Next Year-0.88%
Revenue Next 2Y0.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.98%
EBIT growth 3Y0.23%
EBIT growth 5Y-7.07%
EBIT Next Year118.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y219.58%
FCF growth 3Y0.33%
FCF growth 5Y-14.61%
OCF growth 1Y44.77%
OCF growth 3Y-2.69%
OCF growth 5Y-7.49%