DELUXE CORP (DLX) Stock Fundamental Analysis
NYSE:DLX - New York Stock Exchange, Inc. - US2480191012 - Common Stock - Currency: USD
Taking everything into account, DLX scores 4 out of 10 in our fundamental rating. DLX was compared to 83 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 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.
In the past 5 years DLX has always been profitable.
In the past 5 years DLX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.18%, DLX is in line with its industry, outperforming 55.42% of the companies in the same industry.
DLX has a better Return On Equity (9.00%) than 65.06% of its industry peers.
With a decent Return On Invested Capital value of 6.94%, DLX is doing good in the industry, outperforming 60.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DLX is below the industry average of 10.89%.
The 3 year average ROIC (6.34%) for DLX is below the current ROIC(6.94%), indicating increased profibility in the last year.
| 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 55.42% of its industry peers.
In the last couple of years the Profit Margin of DLX has declined.
DLX has a Operating Margin of 10.53%. This is in the better half of the industry: DLX outperforms 74.70% of its industry peers.
DLX's Operating Margin has declined in the last couple of years.
DLX has a Gross Margin of 52.94%. This is amongst the best in the industry. DLX outperforms 92.77% 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
DLX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DLX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DLX has more shares outstanding
The debt/assets ratio for DLX is higher compared to a year ago.
2.2 Solvency
DLX has an Altman-Z score of 1.56. This is a bad value and indicates that DLX is not financially healthy and even has some risk of bankruptcy.
DLX has a worse Altman-Z score (1.56) than 67.47% of its industry peers.
DLX has a debt to FCF ratio of 12.64. This is a negative value and a sign of low solvency as DLX would need 12.64 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.64, DLX is in line with its industry, outperforming 51.81% of the companies in the same industry.
A Debt/Equity ratio of 2.34 is on the high side and indicates that DLX has dependencies on debt financing.
DLX has a Debt to Equity ratio of 2.34. This is in the lower half of the industry: DLX underperforms 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 12.64 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.9
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.93 indicates that DLX may have some problems paying its short term obligations.
DLX has a Current ratio of 0.93. This is in the lower half of the industry: DLX underperforms 78.31% of its industry peers.
A Quick Ratio of 0.84 indicates that DLX may have some problems paying 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 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
DLX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.30%.
DLX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.54% yearly.
The Revenue has decreased by -2.68% in the past 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)0.3%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%-1.32%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%0.28%
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 4.93% on average per year.
DLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.09% yearly.
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
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
Based on the Price/Earnings ratio of 4.33, 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 96.39% of the companies in the same industry.
DLX is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 3.92, 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 98.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, DLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 3.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLX is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
DLX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLX is cheaper than 96.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.4 | ||
| EV/EBITDA | 5.49 |
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.
DLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.03
PEG (5Y)N/A
EPS Next 2Y4.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLX has a Yearly Dividend Yield of 7.50%, which is a nice return.
DLX's Dividend Yield is rather good when compared to the industry average which is at 2.47. DLX pays more dividend than 98.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, DLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
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 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
DLX pays out 97.74% 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.
DP97.74%
EPS Next 2Y4.93%
EPS Next 3YN/A
14.26
-0.73 (-4.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.91%
Inst Owner Change-18.58%
Ins Owners1.33%
Ins Owner Change15.27%
Market Cap637.71M
Analysts80
Price Target27.03 (89.55%)
Short Float %6.64%
Short Ratio7.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
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)-8.62%
PT rev (3m)-5.1%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 3.92 | ||
| P/S | 0.3 | ||
| P/FCF | 5.4 | ||
| P/OCF | 2.93 | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.49 |
EPS(TTM)3.29
EY23.07%
EPS(NY)3.63
Fwd EY25.48%
FCF(TTM)2.64
FCFY18.51%
OCF(TTM)4.87
OCFY34.18%
SpS47.48
BVpS13.91
TBVpS-25.11
PEG (NY)4.03
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 | 1.56 |
F-Score6
WACC7.72%
ROIC/WACC0.9
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)0.3%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%-1.32%
EPS Next Y1.08%
EPS Next 2Y4.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%0.28%
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 Year119.92%
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%