DELUXE CORP (DLX) Stock Fundamental Analysis
USA - NYSE:DLX - US2480191012 - Common Stock
20.7 USD
-0.05 (-0.24%)
20.7 USD
0 (0%)
DLX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 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 has a bad growth rate and is valued cheaply. Finally DLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DLX had positive earnings in the past year.
In the past year DLX had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.29%, DLX is in line with its industry, outperforming 54.88% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 7.27%, DLX is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
DLX had an Average Return On Invested Capital over the past 3 years of 6.34%. This is below the industry average of 10.49%.
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's Profit Margin of 2.75% is in line compared to the rest of the industry. DLX outperforms 56.10% of its industry peers.
DLX's Profit Margin has declined in the last couple of years.
DLX's Operating Margin of 11.08% is fine compared to the rest of the industry. DLX outperforms 73.17% of its industry peers.
In the last couple of years the Operating Margin of DLX has declined.
DLX has a Gross Margin of 52.90%. This is amongst the best in the industry. DLX outperforms 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.
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 1.69. This is a bad value and indicates that DLX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DLX (1.69) is comparable to the rest of the industry.
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 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 1.69 |
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.
A Quick Ratio of 0.85 indicates that DLX may have some problems paying its short term obligations.
DLX has a worse Quick ratio (0.85) than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
DLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.20%, which is quite good.
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 -3.22%.
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)9.2%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%29.76%
Revenue 1Y (TTM)-3.22%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%2.23%
3.2 Future
The Earnings Per Share is expected to grow by 6.92% on average over the next years.
Based on estimates for the next years, DLX will show a small growth in Revenue. The Revenue will grow by 0.14% on average per year.
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
DLX is valuated cheaply with a Price/Earnings ratio of 5.81.
95.12% of the companies in the same industry are more expensive than DLX, based on the Price/Earnings ratio.
DLX is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
DLX is valuated cheaply with a Price/Forward Earnings ratio of 5.49.
DLX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLX is cheaper than 97.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DLX to the average of the S&P500 Index (32.68), we can say DLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.81 | ||
| Fwd PE | 5.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLX is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DLX is valued cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
The 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)1.2
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.78%, DLX is a good candidate for dividend investing.
DLX's Dividend Yield is rather good when compared to the industry average which is at 2.53. DLX pays more dividend than 96.34% of the companies in the same industry.
DLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
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.
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
20.7
-0.05 (-0.24%)
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 Cap929.22M
Revenue(TTM)2.12B
Net Income(TTM)57.93M
Analysts80
Price Target27.29 (31.84%)
Short Float %6.47%
Short Ratio10.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
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 | 5.81 | ||
| Fwd PE | 5.49 | ||
| P/S | 0.44 | ||
| P/FCF | 6.91 | ||
| P/OCF | 4.05 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.18 |
EPS(TTM)3.56
EY17.2%
EPS(NY)3.77
Fwd EY18.22%
FCF(TTM)2.99
FCFY14.46%
OCF(TTM)5.11
OCFY24.69%
SpS46.93
BVpS14.22
TBVpS-24.47
PEG (NY)1.2
PEG (5Y)N/A
Graham Number33.75
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 | 1.69 |
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)9.2%
EPS 3Y-12.17%
EPS 5Y-13.54%
EPS Q2Q%29.76%
EPS Next Y4.83%
EPS Next 2Y6.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.22%
Revenue growth 3Y1.61%
Revenue growth 5Y1.1%
Sales Q2Q%2.23%
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%.