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DLX

DeluxeNYSE:DLX Stock Report

Last Price

US$30.96

Market Cap

US$1.3b

7D

-4.7%

1Y

-6.8%

Updated

20 Jan, 2022

Data

Company Financials +
DLX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance3/6
Financial Health2/6
Dividends6/6

DLX Stock Overview

Deluxe Corporation provides technology-enabled solutions to small businesses and financial institutions in the United States, Canada, Australia, South America, and Europe.

Deluxe Competitors

R. R. Donnelley & Sons

NYSE:RRD

US$809.3m

Quad/Graphics

NYSE:QUAD

US$246.3m

S&P Global

NYSE:SPGI

US$100.7b

Jack Henry & Associates

NasdaqGS:JKHY

US$12.1b

Price History & Performance

Summary of all time highs, changes and price drops for Deluxe
Historical stock prices
Current Share PriceUS$30.96
52 Week HighUS$48.38
52 Week LowUS$29.59
Beta1.55
1 Month Change-0.96%
3 Month Change-17.51%
1 Year Change-6.80%
3 Year Change-30.13%
5 Year Change-57.55%
Change since IPO-10.26%

Recent News & Updates

Dec 02
These 4 Measures Indicate That Deluxe (NYSE:DLX) Is Using Debt Extensively

These 4 Measures Indicate That Deluxe (NYSE:DLX) Is Using Debt Extensively

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Nov 07
Deluxe (NYSE:DLX) Has Announced A Dividend Of US$0.30

Deluxe (NYSE:DLX) Has Announced A Dividend Of US$0.30

The board of Deluxe Corporation ( NYSE:DLX ) has announced that it will pay a dividend of US$0.30 per share on the 6th...

Nov 04
Is Now An Opportune Moment To Examine Deluxe Corporation (NYSE:DLX)?

Is Now An Opportune Moment To Examine Deluxe Corporation (NYSE:DLX)?

Deluxe Corporation ( NYSE:DLX ), might not be a large cap stock, but it saw a double-digit share price rise of over 10...

Shareholder Returns

DLXUS Commercial ServicesUS Market
7D-4.7%-4.8%-4.0%
1Y-6.8%11.2%6.6%

Return vs Industry: DLX underperformed the US Commercial Services industry which returned 12.7% over the past year.

Return vs Market: DLX underperformed the US Market which returned 7.7% over the past year.

Price Volatility

Is DLX's price volatile compared to industry and market?
DLX volatility
DLX Average Weekly Movement5.4%
Commercial Services Industry Average Movement6.0%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: DLX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DLX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19156,123Barry McCarthyhttps://www.deluxe.com

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: Payments, Cloud Solutions, Promotional Solutions, and Checks. The company provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing, and paperless treasury management solutions, as well as payment exchange, and fraud and security services; web hosting and design services, data-driven marketing solutions and hosted solutions that comprise digital engagement, logo design, financial institution profitability reporting, and business incorporation services.

Deluxe Fundamentals Summary

How do Deluxe's earnings and revenue compare to its market cap?
DLX fundamental statistics
Market CapUS$1.32b
Earnings (TTM)US$77.04m
Revenue (TTM)US$1.91b

17.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLX income statement (TTM)
RevenueUS$1.91b
Cost of RevenueUS$815.51m
Gross ProfitUS$1.09b
ExpensesUS$1.01b
EarningsUS$77.04m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.81
Gross Margin57.22%
Net Profit Margin4.04%
Debt/Equity Ratio319.2%

How did DLX perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLX ($30.96) is trading below our estimate of fair value ($52.91)

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


Price To Earnings Ratio

PE vs Industry: DLX is good value based on its PE Ratio (17.1x) compared to the US Commercial Services industry average (26.1x).

PE vs Market: DLX is poor value based on its PE Ratio (17.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: DLX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: DLX is overvalued based on its PB Ratio (2.4x) compared to the US Commercial Services industry average (2.1x).


Future Growth

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

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLX's forecast earnings growth (26.9% per year) is above the savings rate (2%).

Earnings vs Market: DLX's earnings (26.9% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DLX's revenue (5.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: DLX's revenue (5.5% 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 (12.2%).


Past Performance

How has Deluxe performed over the past 5 years?

-39.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLX has a large one-off loss of $81.2M impacting its September 30 2021 financial results.

Growing Profit Margin: DLX's current net profit margins (4%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: DLX's earnings have declined by 39.7% per year over the past 5 years.

Accelerating Growth: DLX's earnings growth over the past year (204%) exceeds its 5-year average (-39.7% per year).

Earnings vs Industry: DLX earnings growth over the past year (204%) exceeded the Commercial Services industry 35.3%.


Return on Equity

High ROE: DLX's Return on Equity (13.8%) is considered low.


Financial Health

How is Deluxe's financial position?


Financial Position Analysis

Short Term Liabilities: DLX's short term assets ($567.5M) exceed its short term liabilities ($540.9M).

Long Term Liabilities: DLX's short term assets ($567.5M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: DLX's net debt to equity ratio (297.5%) is considered high.

Reducing Debt: DLX's debt to equity ratio has increased from 72.6% to 319.2% over the past 5 years.

Debt Coverage: DLX's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: DLX's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

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

3.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLX's dividend (3.88%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: DLX's dividend (3.88%) is in the top 25% of dividend payers in the US market (3.49%)


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 reasonable payout ratio (65.7%), DLX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DLX's dividends in 3 years are forecast to be well covered by earnings (21.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Barry McCarthy (57 yo)

3.17yrs

Tenure

US$5,256,659

Compensation

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 ($USD5.26M) is above average for companies of similar size in the US market ($USD3.72M).

Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.


Leadership Team

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


Board Members

Experienced Board: DLX's board of directors are considered experienced (5.1 years average tenure).


Ownership

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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Deluxe Corporation
  • Ticker: DLX
  • Exchange: NYSE
  • Founded: 1915
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Implied Market Cap: US$1.319b
  • Shares outstanding: 42.61m
  • Website: https://www.deluxe.com

Number of Employees


Location

  • Deluxe Corporation
  • 3680 Victoria Street North
  • Shoreview
  • Minnesota
  • 55126-2966
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 23:53
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.