DELUXE CORP (DLX) Stock Fundamental Analysis
NYSE:DLX - New York Stock Exchange, Inc. - US2480191012 - Common Stock - Currency: USD
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. While DLX is still in line with the averages on profitability rating, there are concerns on its financial health. DLX has a bad growth rate and is valued cheaply. 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.
DLX had positive earnings in each of the past 5 years.
In the past 5 years DLX always reported a positive cash flow from operatings.
1.2 Ratios
DLX has a Return On Assets (2.18%) which is in line with its industry peers.
DLX has a better Return On Equity (9.00%) than 65.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.94%, DLX is in line with its industry, outperforming 59.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DLX is significantly below the industry average of 11.67%.
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
Looking at the Profit Margin, with a value of 2.64%, DLX is in line with its industry, outperforming 55.42% 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 (10.53%) is better than 73.49% of its industry peers.
DLX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 52.94%, DLX belongs to the top of the industry, outperforming 92.77% of the companies in the same industry.
DLX's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLX is destroying value.
The number of shares outstanding for DLX has been increased compared to 1 year ago.
The number of shares outstanding for DLX has been increased compared to 5 years ago.
DLX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that DLX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.57, DLX is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
The Debt to FCF ratio of DLX is 12.64, which is on the high side as it means it would take DLX, 12.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DLX (12.64) is comparable to the rest of the industry.
DLX has a Debt/Equity ratio of 2.34. This is a high value indicating a heavy dependency on external financing.
DLX's Debt to Equity ratio of 2.34 is on the low side compared to the rest of the industry. DLX is outperformed by 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 12.64 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.84
WACC8.29%
2.3 Liquidity
DLX has a Current Ratio of 0.93. 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 0.93. 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.
Looking at the Quick ratio, with a value of 0.84, DLX is doing worse than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.30% over the past year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.50, which indicates a rather cheap valuation of DLX.
DLX's Price/Earnings ratio is rather cheap when compared to the industry. DLX is cheaper than 95.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of DLX to the average of the S&P500 Index (26.35), we can say DLX is valued rather cheaply.
The Price/Forward Earnings ratio is 4.07, which indicates a rather cheap valuation of DLX.
Based on the Price/Forward Earnings ratio, DLX is valued cheaply inside the industry as 98.80% of the companies are valued more expensively.
DLX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 4.07 |
4.2 Price Multiples
87.95% 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 93.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.6 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.18
PEG (5Y)N/A
EPS Next 2Y4.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.14%, DLX is a good candidate for dividend investing.
DLX's Dividend Yield is rather good when compared to the industry average which is at 2.49. DLX pays more dividend than 98.80% of the companies in the same industry.
DLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
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
97.74% 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.
DP97.74%
EPS Next 2Y4.93%
EPS Next 3YN/A
14.79
+0.04 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.86%
Inst Owner Change-18.68%
Ins Owners1.63%
Ins Owner Change15.07%
Market Cap661.70M
Analysts80
Price Target27.03 (82.76%)
Short Float %6.9%
Short Ratio7.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
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)0%
PT rev (3m)-8.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 4.07 | ||
| P/S | 0.31 | ||
| P/FCF | 5.6 | ||
| P/OCF | 3.04 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.55 |
EPS(TTM)3.29
EY22.24%
EPS(NY)3.63
Fwd EY24.57%
FCF(TTM)2.64
FCFY17.84%
OCF(TTM)4.87
OCFY32.94%
SpS47.46
BVpS13.91
TBVpS-25.1
PEG (NY)4.18
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 | 1.57 |
F-Score6
WACC8.29%
ROIC/WACC0.84
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 Year118.92%
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%