DELUXE CORP (DLX) Stock Fundamental Analysis
USA - NYSE:DLX - US2480191012 - Common Stock
18.09 USD
-0.02 (-0.11%)
18.09 USD
0 (0%)
Overall DLX gets a fundamental rating of 4 out of 10. We evaluated DLX against 82 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. DLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DLX was profitable.
In the past year DLX had a positive cash flow from operations.
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's Return On Assets of 2.29% is in line compared to the rest of the industry. DLX outperforms 54.88% of its industry peers.
With a decent Return On Equity value of 9.07%, DLX is doing good in the industry, outperforming 67.07% of the companies in the same industry.
DLX's Return On Invested Capital of 7.27% is fine compared to the rest of the industry. DLX outperforms 65.85% of its industry peers.
DLX had an Average Return On Invested Capital over the past 3 years of 6.34%. This is below the industry average of 10.47%.
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
DLX has a Profit Margin of 2.75%. This is comparable to the rest of the industry: DLX outperforms 54.88% 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 11.08%, DLX is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
DLX's Operating Margin has declined in the last couple of years.
The Gross Margin of DLX (52.90%) is better than 92.68% of its industry peers.
In the last couple of years the Gross Margin of DLX has declined.
| 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.
Compared to 1 year ago, DLX has more shares outstanding
Compared to 5 years ago, DLX has more shares outstanding
Compared to 1 year ago, DLX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that DLX is in the distress zone and has some risk of bankruptcy.
DLX has a Altman-Z score (1.66) which is comparable to the rest of the industry.
The Debt to FCF ratio of DLX is 10.94, which is on the high side as it means it would take DLX, 10.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DLX (10.94) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.25 is on the high side and indicates that DLX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.25, DLX is doing worse than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.94
WACC7.74%
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.
Looking at the Current ratio, with a value of 0.94, DLX is doing worse than 76.83% of the companies in the same industry.
DLX has a Quick 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.
Looking at the Quick ratio, with a value of 0.85, DLX is doing worse than 74.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 |
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 -1.92% in the last year.
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
DLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.92% yearly.
DLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.14% yearly.
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
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
The Price/Earnings ratio is 5.47, which indicates a rather cheap valuation of DLX.
Based on the Price/Earnings ratio, DLX is valued cheaper than 95.12% of the companies in the same industry.
DLX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 4.80, the valuation of DLX can be described as very cheap.
Based on the Price/Forward Earnings ratio, DLX is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
DLX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.47 | ||
| Fwd PE | 4.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 89.02% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DLX is valued cheaply inside the industry as 93.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.04 | ||
| EV/EBITDA | 5.87 |
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)1.13
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.60%, DLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.60, DLX pays a better dividend. On top of this DLX pays more dividend than 98.78% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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
94.52% 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.
DP94.52%
EPS Next 2Y6.92%
EPS Next 3YN/A
18.09
-0.02 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.03%
Inst Owner Change0.02%
Ins Owners1.68%
Ins Owner Change1.35%
Market Cap812.06M
Revenue(TTM)2.11B
Net Income(TTM)57.93M
Analysts80
Price Target27.29 (50.86%)
Short Float %6.47%
Short Ratio10.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.47 | ||
| Fwd PE | 4.8 | ||
| P/S | 0.39 | ||
| P/FCF | 6.04 | ||
| P/OCF | 3.54 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.87 |
EPS(TTM)3.31
EY18.3%
EPS(NY)3.77
Fwd EY20.85%
FCF(TTM)2.99
FCFY16.55%
OCF(TTM)5.11
OCFY28.25%
SpS46.93
BVpS14.22
TBVpS-24.47
PEG (NY)1.13
PEG (5Y)N/A
Graham Number32.55
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%
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-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 | 1.66 |
F-Score6
WACC7.74%
ROIC/WACC0.94
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%
DELUXE CORP / DLX FAQ
What is the fundamental rating for DLX stock?
ChartMill assigns a fundamental rating of 4 / 10 to DLX.
What is the valuation status for DLX stock?
ChartMill assigns a valuation rating of 8 / 10 to DELUXE CORP (DLX). This can be considered as Undervalued.
Can you provide the profitability details for DELUXE CORP?
DELUXE CORP (DLX) has a profitability rating of 6 / 10.
Can you provide the financial health for DLX stock?
The financial health rating of DELUXE CORP (DLX) is 1 / 10.
Is the dividend of DELUXE CORP sustainable?
The dividend rating of DELUXE CORP (DLX) is 8 / 10 and the dividend payout ratio is 94.52%.