DB:DL8

Stock Analysis Report

Executive Summary

Deluxe Corporation provides checks, forms, marketing solutions, accessories, and other products and services for small businesses and financial institutions.

Snowflake

Fundamentals

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Deluxe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DL8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

DL8

0.3%

DE Commercial Services

-0.3%

DE Market


1 Year Return

6.5%

DL8

2.6%

DE Commercial Services

10.9%

DE Market

Return vs Industry: DL8 exceeded the German Commercial Services industry which returned 2.6% over the past year.

Return vs Market: DL8 underperformed the German Market which returned 10.9% over the past year.


Shareholder returns

DL8IndustryMarket
7 Day-0.4%0.3%-0.3%
30 Day4.6%5.0%2.6%
90 Day11.2%17.0%11.8%
1 Year9.4%6.5%6.3%2.6%14.4%10.9%
3 Year-25.9%-30.5%5.4%-3.7%24.1%13.2%
5 Year7.5%-3.1%0.6%-13.5%33.0%14.8%

Price Volatility Vs. Market

How volatile is Deluxe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Deluxe undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DL8 (€45.2) is trading below our estimate of fair value (€100.54)

Significantly Below Fair Value: DL8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DL8 is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: DL8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DL8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DL8 is overvalued based on its PB Ratio (4x) compared to the DE Commercial Services industry average (2.7x).


Next Steps

Future Growth

How is Deluxe forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

116.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DL8 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: DL8 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DL8's is expected to become profitable in the next 3 years.

Revenue vs Market: DL8's revenue (1% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: DL8's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DL8's Return on Equity is forecast to be high in 3 years time (28.1%)


Next Steps

Past Performance

How has Deluxe performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DL8 has large one-off items impacting its financial results.

Growing Profit Margin: DL8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DL8 is unprofitable, and losses have increased over the past 5 years at a rate of -14.9% per year.

Accelerating Growth: Unable to compare DL8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DL8 is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (6.4%).


Return on Equity

High ROE: DL8 has a negative Return on Equity (-35.69%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Deluxe's financial position?


Financial Position Analysis

Short Term Liabilities: DL8's short term assets ($425.7M) exceeds its short term liabilities ($361.8M)

Long Term Liabilities: DL8's short term assets ($425.7M) do not cover its long term liabilities (1.0B)


Debt to Equity History and Analysis

Debt Level: DL8's debt to equity ratio (175.8%) is considered high.

Reducing Debt: DL8's debt to equity ratio has increased from 107.9% to 175.8% over the past 5 years.

Debt Coverage: DL8's debt is well covered by operating cash flow (35.5%).

Interest Coverage: DL8 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: DL8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: DL8's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Deluxe's current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: DL8's dividend (2.38%) is higher than the bottom 25% of dividend payers in the German market (1.4%).

High Dividend: DL8's dividend (2.38%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

Stable Dividend: DL8's dividends per share have been stable in the past 10 years.

Growing Dividend: DL8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: DL8 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DL8's dividends in 3 years are forecast to be well covered by earnings (17.5% payout ratio).


Next Steps

Management

What is the CEO of Deluxe's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Barry McCarthy (55yo)

1yrs

Tenure

US$7,352,496

Compensation

Mr. Barry C. McCarthy has been President, Chief Executive Officer and Director of Deluxe Corporation since November 26, 2018. Previously, Mr. McCarthy served as Executive Vice President, Head of Network an ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD7.35M) is above average for companies of similar size in the German market ($USD1.56M).

Compensation vs Earnings: Insufficient data to compare Barry's compensation with company performance.


Management Age and Tenure

2.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: DL8's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

9.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DL8's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Barry McCarthy (55yo)

    President

    • Tenure: 1yrs
    • Compensation: US$7.35m
  • Ed Merritt (52yo)

    Treasurer & VP of Investor Relations

    • Tenure: 0yrs
    • Compensation: US$1.25m
  • Malcolm McRoberts (54yo)

    Special Advisor to CEO

    • Tenure: 11.5yrs
    • Compensation: US$1.65m
  • Jeffrey Cotter (52yo)

    Chief Administrative Officer

    • Tenure: 0.8yrs
  • Pete Godich (54yo)

    Senior VP & Chief of Operations

    • Tenure: 0.08yrs
    • Compensation: US$795.95k
  • Keith Bush (49yo)

    Senior VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$1.97m
  • Amanda Brinkman (39yo)

    VP and Chief Brand & Communications Officer

    • Tenure: 5.8yrs
  • Jane Elliott (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.6yrs
  • Tracey Engelhardt (54yo)

    Senior VP & GM of Checks

    • Tenure: 2.7yrs
  • Mike Mathews (46yo)

    Senior VP & Chief Information Officer

    • Tenure: 6.5yrs
    • Compensation: US$805.10k

Board Members

  • Stephen Nachtsheim (74yo)

    Independent Director

    • Tenure: 24yrs
    • Compensation: US$257.03k
  • Martyn Redgrave (66yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$369.53k
  • Tom Reddin (58yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$276.53k
  • Don McGrath (70yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$258.03k
  • Ron Baldwin (72yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$241.53k
  • Cheryl Mayberry McKissack (63yo)

    Non-Executive Chair of the Board

    • Tenure: 0.3yrs
    • Compensation: US$268.03k
  • Barry McCarthy (55yo)

    President

    • Tenure: 1yrs
    • Compensation: US$7.35m
  • Neil Metviner (60yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$239.53k
  • John Stauch (54yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$251.03k
  • Victoria Treyger (49yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$233.03k

Company Information

Deluxe Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deluxe Corporation
  • Ticker: DL8
  • Exchange: DB
  • Founded: 1915
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: US$2.119b
  • Listing Market Cap: US$1.915b
  • Shares outstanding: 42.10m
  • Website: https://www.deluxe.com

Number of Employees


Location

  • Deluxe Corporation
  • 3680 Victoria Street North
  • Shoreview
  • Minnesota
  • 55126
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLXNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1969
DL8DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1969

Biography

Deluxe Corporation provides checks, forms, marketing solutions, accessories, and other products and services for small businesses and financial institutions. It operates through three segments: Small Busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 21:07
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.