DELUXE CORP (DLX)
US2480191012 - Common Stock
We assign a fundamental rating of 4 out of 10 to DLX. 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 has a bad growth rate and is valued cheaply. 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.
DLX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DLX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.85%, DLX is in line with its industry, outperforming 48.19% of the companies in the same industry.
The Return On Equity of DLX (4.32%) is comparable to the rest of the industry.
DLX has a better Return On Invested Capital (6.56%) than 65.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLX is below the industry average of 10.00%.
The 3 year average ROIC (6.54%) for DLX is below the current ROIC(6.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 4.32% | ||
| ROIC | 6.56% |
ROA(3y)1.67%
ROA(5y)-0.96%
ROE(3y)8.68%
ROE(5y)-1.47%
ROIC(3y)6.54%
ROIC(5y)9.08%
1.3 Margins
DLX has a Profit Margin of 1.19%. This is comparable to the rest of the industry: DLX outperforms 48.19% of its industry peers.
In the last couple of years the Profit Margin of DLX has declined.
With a decent Operating Margin value of 9.42%, DLX is doing good in the industry, outperforming 71.08% of the companies in the same industry.
In the last couple of years the Operating Margin of DLX has declined.
DLX has a better Gross Margin (53.04%) than 95.18% of its industry peers.
In the last couple of years the Gross Margin of DLX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.42% | ||
| PM (TTM) | 1.19% | ||
| GM | 53.04% |
OM growth 3Y-9.34%
OM growth 5Y-12.13%
PM growth 3Y34.28%
PM growth 5Y-30.73%
GM growth 3Y-3.59%
GM growth 5Y-2.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLX is destroying value.
DLX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DLX has been reduced compared to 5 years ago.
The debt/assets ratio for DLX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that DLX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, DLX is doing worse than 65.06% of the companies in the same industry.
The Debt to FCF ratio of DLX is 16.32, which is on the high side as it means it would take DLX, 16.32 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.32, DLX perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
A Debt/Equity ratio of 2.49 is on the high side and indicates that DLX has dependencies on debt financing.
DLX has a Debt to Equity ratio of 2.49. This is amonst the worse of the industry: DLX underperforms 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.49 | ||
| Debt/FCF | 16.32 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.82
WACC7.97%
2.3 Liquidity
A Current Ratio of 0.93 indicates that DLX may have some problems paying its short term obligations.
DLX's Current ratio of 0.93 is on the low side compared to the rest of the industry. DLX is outperformed by 78.31% of its industry peers.
DLX has a Quick 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.
With a Quick ratio value of 0.88, DLX is not doing good in the industry: 75.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
DLX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.43%.
Measured over the past years, DLX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.21% on average per year.
Looking at the last year, DLX shows a decrease in Revenue. The Revenue has decreased by -2.04% in the last year.
The Revenue has been growing slightly by 1.87% on average over the past years.
EPS 1Y (TTM)-18.43%
EPS 3Y-13.22%
EPS 5Y-10.21%
EPS growth Q2Q-23.08%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y6.97%
Revenue growth 5Y1.87%
Revenue growth Q2Q-4.72%
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 3.93% on average per year.
Based on estimates for the next years, DLX will show a small growth in Revenue. The Revenue will grow by 0.70% on average per year.
EPS Next Y-2.25%
EPS Next 2Y1.6%
EPS Next 3Y3.93%
EPS Next 5YN/A
Revenue Next Year-1.49%
Revenue Next 2Y-0.14%
Revenue Next 3Y0.7%
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.
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
DLX is valuated cheaply with a Price/Earnings ratio of 6.13.
Compared to the rest of the industry, the Price/Earnings ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 98.80% of the companies listed in the same industry.
DLX is valuated cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.27, the valuation of DLX can be described as very cheap.
Based on the Price/Forward Earnings ratio, DLX is valued cheaper than 96.39% of the companies in the same industry.
DLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.27 |
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 89.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DLX is valued cheaper than 84.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.6%
EPS Next 3Y3.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.99%, DLX is a good candidate for dividend investing.
DLX's Dividend Yield is rather good when compared to the industry average which is at 2.39. DLX pays more dividend than 98.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
5.2 History
The dividend of DLX has a limited annual growth rate of 0.03%.
DLX has been paying a dividend for at least 10 years, so it has a reliable track record.
DLX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.03%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
DLX pays out 204.47% 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.
DP204.47%
EPS Next 2Y1.6%
EPS Next 3Y3.93%
DELUXE CORP
NYSE:DLX (4/26/2024, 7:04:00 PM)
After market: 20.35 0 (0%)20.35
+0.3 (+1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap896.01M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 4.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.42% | ||
| PM (TTM) | 1.19% | ||
| GM | 53.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.43%
EPS 3Y-13.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y6.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y