Deluxe Corporation provides technology-enabled solutions to small businesses and financial institutions in the United States, Canada, Australia, South America, and Europe. More Details
Average dividend payer with moderate growth potential.
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: DLX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: DLX's weekly volatility (6%) has been stable over the past year.
7 Day Return
US Commercial Services
1 Year Return
US Commercial Services
Return vs Industry: DLX exceeded the US Commercial Services industry which returned 52.2% over the past year.
Return vs Market: DLX exceeded the US Market which returned 57.5% over the past year.
Long-Term 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
2 weeks ago | Simply Wall StIs There An Opportunity With Deluxe Corporation's (NYSE:DLX) 50% Undervaluation?
1 month ago | Simply Wall StIs Deluxe (NYSE:DLX) Struggling?
2 months ago | Simply Wall StShould Deluxe Corporation (NYSE:DLX) Be Part Of Your Dividend Portfolio?
Is Deluxe undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DLX ($42.04) is trading below our estimate of fair value ($83.25)
Significantly Below Fair Value: DLX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DLX is poor value based on its PE Ratio (201.3x) compared to the US Commercial Services industry average (34.4x).
PE vs Market: DLX is poor value based on its PE Ratio (201.3x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: DLX is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: DLX is overvalued based on its PB Ratio (3.3x) compared to the US Commercial Services industry average (2.5x).
How is Deluxe forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DLX's forecast earnings growth (71.8% per year) is above the savings rate (2%).
Earnings vs Market: DLX's earnings (71.8% per year) are forecast to grow faster than the US market (18.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DLX's revenue (0.8% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: DLX's revenue (0.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DLX's Return on Equity is forecast to be low in 3 years time (14.4%).
How has Deluxe performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DLX has a large one-off loss of $180.8M impacting its December 31 2020 financial results.
Growing Profit Margin: DLX became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DLX's earnings have declined by 47% per year over the past 5 years.
Accelerating Growth: DLX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: DLX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (-12.1%).
Return on Equity
High ROE: DLX's Return on Equity (1.6%) is considered low.
How is Deluxe's financial position?
Financial Position Analysis
Short Term Liabilities: DLX's short term assets ($506.6M) exceed its short term liabilities ($411.8M).
Long Term Liabilities: DLX's short term assets ($506.6M) do not cover its long term liabilities ($922.2M).
Debt to Equity History and Analysis
Debt Level: DLX's debt to equity ratio (156.6%) is considered high.
Reducing Debt: DLX's debt to equity ratio has increased from 84% to 156.6% over the past 5 years.
Debt Coverage: DLX's debt is well covered by operating cash flow (25.7%).
Interest Coverage: DLX's interest payments on its debt are well covered by EBIT (9.7x coverage).
What is Deluxe current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DLX's dividend (2.85%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: DLX's dividend (2.85%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: DLX's dividends per share have been stable in the past 10 years.
Growing Dividend: DLX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (574.7%), DLX's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DLX's dividends in 3 years are forecast to be well covered by earnings (22.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Barry McCarthy (56 yo)
Mr. Barry C. McCarthy has been President, Chief Executive Officer and Director of Deluxe Corporation since November 26, 2018. Prior to joining First Data since June 2015, he led the turnaround of the VeriS...
CEO Compensation Analysis
Compensation vs Market: Barry's total compensation ($USD5.26M) is above average for companies of similar size in the US market ($USD3.79M).
Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.
Experienced Management: DLX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: DLX's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Deluxe Corporation's company bio, employee growth, exchange listings and data sources
- Name: Deluxe Corporation
- Ticker: DLX
- Exchange: NYSE
- Founded: 1915
- Industry: Commercial Printing
- Sector: Commercial Services
- Market Cap: US$1.839b
- Shares outstanding: 42.03m
- Website: https://www.deluxe.com
Number of Employees
- Deluxe Corporation
- 3680 Victoria Street North
- United States
Deluxe Corporation provides technology-enabled solutions to small businesses and financial institutions in the United States, Canada, Australia, South America, and Europe. It operates through four segments...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:14|
|End of Day Share Price||2021/04/16 00:00|
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.