DELUXE CORP (DLX) Stock Fundamental Analysis
NYSE:DLX - US2480191012 - Common Stock
18.99 USD
-0.39 (-2.01%)
19.01 USD
+0.02 (+0.11%)
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. There are concerns on the financial health of DLX while its profitability can be described as average. DLX is cheap, but on the other hand it scores bad on growth. 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
The Return On Assets of DLX (2.29%) is comparable to the rest of the industry.
With a decent Return On Equity value of 9.07%, DLX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
DLX has a Return On Invested Capital of 7.27%. This is in the better half of the industry: DLX outperforms 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLX is below the industry average of 10.65%.
The 3 year average ROIC (6.34%) for DLX is below the current ROIC(7.27%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 2.75%, DLX is in line with its industry, outperforming 55.95% of the companies in the same industry.
In the last couple of years the Profit Margin of DLX has declined.
The Operating Margin of DLX (11.08%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of DLX has declined.
DLX's Gross Margin of 52.90% is amongst the best of the industry. DLX outperforms 92.86% of its industry peers.
DLX's Gross Margin has declined in the last couple of years.
| 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
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
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
DLX has an Altman-Z score of 1.67. 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 1.67 is on the low side compared to the rest of the industry. DLX is outperformed by 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.
The Debt to FCF ratio of DLX (10.94) is comparable to the rest of the industry.
DLX has a Debt/Equity ratio of 2.25. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.25, DLX is doing worse than 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.88
WACC8.25%
2.3 Liquidity
A Current Ratio of 0.94 indicates that DLX may have some problems paying its short term obligations.
With a Current ratio value of 0.94, DLX is not doing good in the industry: 77.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that DLX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, DLX is doing worse than 77.38% of the companies in the same industry.
| 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%.
DLX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.54% yearly.
DLX shows a decrease in Revenue. In the last year, the revenue decreased by -1.92%.
The Revenue has been growing slightly by 1.10% on average over the past years.
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
Based on estimates for the next years, DLX will show a small growth in Earnings Per Share. The EPS will grow by 6.92% on average per year.
Based on estimates for the next years, DLX will show a small growth in Revenue. The Revenue will grow by 0.19% on average per year.
EPS Next Y4.83%
EPS Next 2Y6.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.21%
Revenue Next 2Y0.19%
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 5.74.
Compared to the rest of the industry, the Price/Earnings ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 96.43% of the companies listed in the same industry.
DLX is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.03 indicates a rather cheap valuation of DLX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 98.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.48, DLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 5.03 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than DLX, based on the Enterprise Value to EBITDA ratio.
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 | 6.34 | ||
| EV/EBITDA | 5.98 |
4.3 Compensation for Growth
DLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DLX may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.19%, DLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.26, DLX pays a better dividend. On top of this DLX pays more dividend than 98.81% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, DLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
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
94.52% 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.
DP94.52%
EPS Next 2Y6.92%
EPS Next 3YN/A
18.99
-0.39 (-2.01%)
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 Change6.04%
Market Cap852.46M
Analysts80
Price Target27.29 (43.71%)
Short Float %7.88%
Short Ratio9.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
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%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)3.71%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 5.03 | ||
| P/S | 0.4 | ||
| P/FCF | 6.34 | ||
| P/OCF | 3.72 | ||
| P/B | 1.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.98 |
EPS(TTM)3.31
EY17.43%
EPS(NY)3.77
Fwd EY19.86%
FCF(TTM)2.99
FCFY15.77%
OCF(TTM)5.11
OCFY26.91%
SpS46.93
BVpS14.22
TBVpS-24.47
PEG (NY)1.19
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 | 1.67 |
F-Score6
WACC8.25%
ROIC/WACC0.88
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-1.21%
Revenue Next 2Y0.19%
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%