DELUXE CORP (DLX) Stock Fundamental Analysis
USA - NYSE:DLX - US2480191012 - Common Stock
18.9 USD
-0.08 (-0.42%)
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. While DLX is still in line with the averages on profitability rating, there are concerns on its financial health. 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
In the past year DLX was profitable.
DLX had a positive operating cash flow in the past year.
In the past 5 years DLX has always been profitable.
DLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DLX has a Return On Assets of 2.29%. This is comparable to the rest of the industry: DLX outperforms 57.14% of its industry peers.
DLX's Return On Equity of 9.07% is fine compared to the rest of the industry. DLX outperforms 69.05% of its industry peers.
DLX's Return On Invested Capital of 7.27% is fine compared to the rest of the industry. DLX outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLX is below the industry average of 10.21%.
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
With a Profit Margin value of 2.75%, DLX perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
DLX's Profit Margin has declined in the last couple of years.
The Operating Margin of DLX (11.08%) is better than 75.00% of its industry peers.
DLX's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 52.90%, DLX belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLX is destroying value.
DLX has more shares outstanding than it did 1 year ago.
DLX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DLX is higher compared to a year ago.
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 has a Altman-Z score of 1.67. This is comparable to the rest of the industry: DLX outperforms 42.86% 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.
The Debt to Equity ratio of DLX (2.25) is worse than 79.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.92
WACC7.92%
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 Current ratio of 0.94. This is in the lower half of the industry: DLX underperforms 77.38% of its industry peers.
A Quick Ratio of 0.85 indicates that DLX may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, DLX is not doing good in the industry: 77.38% of the companies in the same industry are doing better.
| 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%.
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.
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.
The Revenue is expected to grow by 0.14% on average over the next years.
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
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.
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
With a Price/Earnings ratio of 5.71, the valuation of DLX can be described as very cheap.
Based on the Price/Earnings ratio, DLX is valued cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.91. DLX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.01, the valuation of DLX can be described as very cheap.
98.81% of the companies in the same industry are more expensive than DLX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DLX to the average of the S&P500 Index (23.30), we can say DLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 5.01 |
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.
DLX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLX is cheaper than 94.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.31 | ||
| EV/EBITDA | 5.98 |
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)1.18
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLX has a Yearly Dividend Yield of 6.18%, which is a nice return.
Compared to an average industry Dividend Yield of 2.34, DLX pays a better dividend. On top of this DLX pays more dividend than 98.81% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
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
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
NYSE:DLX (10/9/2025, 9:36:09 AM)
18.9
-0.08 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.03%
Inst Owner Change0%
Ins Owners1.68%
Ins Owner Change5.77%
Market Cap848.42M
Analysts80
Price Target27.29 (44.39%)
Short Float %6.37%
Short Ratio7.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
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%
PT rev (3m)0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 5.01 | ||
| P/S | 0.4 | ||
| P/FCF | 6.31 | ||
| P/OCF | 3.7 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.98 |
EPS(TTM)3.31
EY17.51%
EPS(NY)3.77
Fwd EY19.96%
FCF(TTM)2.99
FCFY15.84%
OCF(TTM)5.11
OCFY27.04%
SpS46.93
BVpS14.22
TBVpS-24.47
PEG (NY)1.18
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
WACC7.92%
ROIC/WACC0.92
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 Year121.32%
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%