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Deluxe

NYSE:DLX
Snowflake Description

Undervalued with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DLX
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Deluxe Corporation provides checks, forms, marketing solutions, accessories, and other products and services for small businesses and financial institutions. The last earnings update was 21 days ago. More info.


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  • Deluxe has significant price volatility in the past 3 months.
DLX Share Price and Events
7 Day Returns
0.9%
NYSE:DLX
0.1%
US Commercial Services
-2.1%
US Market
1 Year Returns
-41.1%
NYSE:DLX
12.8%
US Commercial Services
1.3%
US Market
DLX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Deluxe (DLX) 0.9% -15% -19.3% -41.1% -39.5% -29.7%
US Commercial Services 0.1% 0.3% 5.4% 12.8% 50% 72.2%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • DLX underperformed the Commercial Services industry which returned 12.8% over the past year.
  • DLX underperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
DLX
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Deluxe undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Deluxe to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Deluxe.

NYSE:DLX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:DLX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.718 (1 + (1- 21%) (57.8%))
1.03
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.03 * 5.96%)
8.87%

Discounted Cash Flow Calculation for NYSE:DLX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Deluxe is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:DLX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.87%)
2019 259.65 Analyst x2 238.49
2020 278.35 Analyst x2 234.84
2021 278.32 Est @ -0.01% 215.68
2022 280.58 Est @ 0.81% 199.71
2023 284.47 Est @ 1.39% 185.98
2024 289.56 Est @ 1.79% 173.88
2025 295.56 Est @ 2.07% 163.02
2026 302.27 Est @ 2.27% 153.14
2027 309.54 Est @ 2.41% 144.05
2028 317.29 Est @ 2.5% 135.62
Present value of next 10 years cash flows $1,844.41
NYSE:DLX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $317.29 × (1 + 2.73%) ÷ (8.87% – 2.73%)
$5,307.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,307.65 ÷ (1 + 8.87%)10
$2,268.66
NYSE:DLX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,844.41 + $2,268.66
$4,113.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,113.07 / 43.64
$94.25
NYSE:DLX Discount to Share Price
Calculation Result
Value per share (USD) From above. $94.25
Current discount Discount to share price of $39.45
= -1 x ($39.45 - $94.25) / $94.25
58.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Deluxe is available for.
Intrinsic value
>50%
Share price is $39.45 vs Future cash flow value of $94.25
Current Discount Checks
For Deluxe to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Deluxe's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Deluxe's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Deluxe's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Deluxe's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:DLX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.77
NYSE:DLX Share Price ** NYSE (2019-05-24) in USD $39.45
United States of America Commercial Services Industry PE Ratio Median Figure of 48 Publicly-Listed Commercial Services Companies 22.6x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Deluxe.

NYSE:DLX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DLX Share Price ÷ EPS (both in USD)

= 39.45 ÷ 2.77

14.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deluxe is good value based on earnings compared to the US Commercial Services industry average.
  • Deluxe is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Deluxe's expected growth come at a high price?
Raw Data
NYSE:DLX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
22.9%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 34 Publicly-Listed Commercial Services Companies 1.73x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

NYSE:DLX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.25x ÷ 22.9%

0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deluxe is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Deluxe's assets?
Raw Data
NYSE:DLX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $20.57
NYSE:DLX Share Price * NYSE (2019-05-24) in USD $39.45
United States of America Commercial Services Industry PB Ratio Median Figure of 88 Publicly-Listed Commercial Services Companies 1.88x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NYSE:DLX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DLX Share Price ÷ Book Value per Share (both in USD)

= 39.45 ÷ 20.57

1.92x

* Primary Listing of Deluxe.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deluxe is overvalued based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess Deluxe's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Deluxe has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Deluxe expected to grow at an attractive rate?
  • Deluxe's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Deluxe's earnings growth is expected to exceed the United States of America market average.
  • Deluxe's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:DLX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DLX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 22.9%
NYSE:DLX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 1.6%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 14.9%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:DLX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DLX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 2,064 344 213 3
2019-12-31 2,030 323 199 3
NYSE:DLX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,005 304 127
2018-12-31 1,998 339 149
2018-09-30 1,968 332 176
2018-06-30 1,973 334 236
2018-03-31 1,970 345 235
2017-12-31 1,966 338 229
2017-09-30 1,951 337 198
2017-06-30 1,912 343 228
2017-03-31 1,878 321 227
2016-12-31 1,849 319 228
2016-09-30 1,832 299 233
2016-06-30 1,813 291 231

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Deluxe's earnings are expected to grow significantly at over 20% yearly.
  • Deluxe's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DLX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Deluxe Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DLX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 4.81 5.58 4.03 2.00
2019-12-31 4.50 4.84 4.15 2.00
NYSE:DLX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.77
2018-12-31 3.18
2018-09-30 3.71
2018-06-30 4.93
2018-03-31 4.90
2017-12-31 4.75
2017-09-30 4.11
2017-06-30 4.71
2017-03-31 4.68
2016-12-31 4.68
2016-09-30 4.78
2016-06-30 4.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Deluxe will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Deluxe's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Deluxe has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Deluxe performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Deluxe's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Deluxe's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Deluxe's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Deluxe's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.
Earnings and Revenue History
Deluxe's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Deluxe Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DLX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,005.18 127.04 849.72
2018-12-31 1,998.03 149.01 837.52
2018-09-30 1,968.24 176.11 819.06
2018-06-30 1,972.72 235.87 823.85
2018-03-31 1,969.70 235.09 817.57
2017-12-31 1,965.56 228.70 824.68
2017-09-30 1,950.87 198.29 839.98
2017-06-30 1,912.12 227.84 826.79
2017-03-31 1,877.53 226.53 824.65
2016-12-31 1,849.06 227.51 801.63
2016-09-30 1,832.37 233.01 795.92
2016-06-30 1,813.27 231.37 787.19
2016-03-31 1,798.50 229.16 778.56
2015-12-31 1,772.82 217.17 772.46
2015-09-30 1,757.82 215.50 767.16
2015-06-30 1,731.21 203.14 753.19
2015-03-31 1,700.74 197.24 736.64
2014-12-31 1,674.08 198.72 717.86
2014-09-30 1,643.33 186.65 705.48
2014-06-30 1,628.20 189.22 703.18
2014-03-31 1,604.23 187.39 694.14
2013-12-31 1,584.82 185.81 691.36
2013-09-30 1,554.65 182.59 682.69
2013-06-30 1,534.91 177.06 680.56
2013-03-31 1,524.49 171.09 683.78
2012-12-31 1,514.92 169.33 680.46
2012-09-30 1,493.76 166.55 670.23
2012-06-30 1,470.57 161.83 661.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Deluxe has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Deluxe used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • Deluxe's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Deluxe's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Deluxe has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Deluxe's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Deluxe's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Deluxe is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Deluxe's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Deluxe's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Deluxe Company Filings, last reported 1 month ago.

NYSE:DLX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 897.56 995.10 61.53
2018-12-31 915.41 911.86 59.74
2018-09-30 955.30 890.88 57.85
2018-06-30 1,075.14 766.80 68.59
2018-03-31 1,051.67 742.53 67.73
2017-12-31 1,015.01 709.30 59.24
2017-09-30 950.55 756.40 53.41
2017-06-30 948.99 720.45 34.78
2017-03-31 913.16 739.49 85.51
2016-12-31 880.97 758.65 76.57
2016-09-30 849.95 617.85 80.07
2016-06-30 816.74 614.69 69.59
2016-03-31 783.87 615.78 71.01
2015-12-31 745.07 629.02 64.04
2015-09-30 720.07 521.33 64.57
2015-06-30 725.53 510.35 66.70
2015-03-31 679.75 520.54 60.07
2014-12-31 647.50 562.38 63.44
2014-09-30 604.17 655.79 190.70
2014-06-30 581.83 656.35 150.22
2014-03-31 558.99 656.96 144.30
2013-12-31 550.46 656.94 125.29
2013-09-30 520.33 657.30 102.14
2013-06-30 480.55 656.89 54.88
2013-03-31 463.82 656.94 72.86
2012-12-31 432.94 656.77 47.60
2012-09-30 397.99 742.32 107.73
2012-06-30 358.92 742.14 47.16
  • Deluxe's level of debt (110.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (117.5% vs 110.9% today).
  • Debt is well covered by operating cash flow (30.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.5x coverage).
X
Financial health checks
We assess Deluxe's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Deluxe has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.04%
Current annual income from Deluxe dividends. Estimated to be 3.04% next year.
If you bought $2,000 of Deluxe shares you are expected to receive $61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Deluxe's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Deluxe's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:DLX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:DLX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.20 1.00
2019-12-31 1.20 1.00
NYSE:DLX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 1.200 2.907
2019-04-25 1.200 2.715
2018-10-25 1.200 2.670
2018-08-07 1.200 2.137
2018-05-02 1.200 1.815
2018-04-27 1.200 1.738
2018-04-26 1.200 1.674
2017-10-26 1.200 1.642
2017-07-27 1.200 1.700
2017-05-01 1.200 1.718
2017-01-31 1.200 1.659
2016-10-18 1.200 1.752
2016-08-04 1.200 1.777
2016-05-04 1.200 1.825
2016-04-28 1.200 1.915
2016-02-19 1.200 2.000
2016-01-28 1.200 2.248
2015-07-30 1.200 2.090
2015-04-28 1.200 1.884
2015-04-23 1.200 1.785
2015-02-20 1.200 1.785
2015-01-22 1.200 1.819
2014-07-31 1.200 2.049
2014-04-29 1.200 2.129
2014-01-23 1.000 1.989
2013-10-24 1.000 2.018
2013-07-17 1.000 2.394
2013-04-30 1.000 2.722
2013-01-24 1.000 2.539
2012-10-25 1.000 3.212
2012-08-01 1.000 3.382
2012-05-01 1.000 4.092
2012-01-26 1.000 4.159
2011-10-27 1.000 4.415
2011-08-03 1.000 4.775
2011-04-28 1.000 4.036
2011-01-27 1.000 3.832
2010-10-28 1.000 4.442
2010-08-02 1.000 5.304
2010-04-28 1.000 4.887
2010-01-28 1.000 5.196
2009-10-22 1.000 6.847
2009-08-06 1.000 5.884

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Deluxe's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Deluxe's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Deluxe afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Deluxe has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Barry McCarthy
COMPENSATION $7,352,496
AGE 54
TENURE AS CEO 0.5 years
CEO Bio

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 and Security Solutions (NSS) until November 2018. Prior to joining First Data since June 2015, he led the turnaround of the VeriSign payment business that was acquired by PayPal. Previously, Mr. McCarthy was Executive Vice President, Head of Consumer and Network Solutions from November 2014 until June 2015 and president of our U.S. Financial Services segment from February 2013 until October 2014. He also co-founded and later sold MagnaCash, a Silicon Valley-based micropayments company, whose technology, through subsequent transactions, is currently owned by Digital River. He started his career at Procter & Gamble, where he spent 12 years in brand, customer marketing, and sales management roles, and launched dozens of successful new products on Oil of Olay™, Secret™, Sure™, and Old Spice™. He has served on multiple corporate and joint venture boards globally including Standard Chartered Merchant Solutions in Singapore, ICICI Merchant Solutions in Mumbai, Merchant Link in Washington, D.C., PNC Merchant Solutions in Pittsburgh, Bank of America Merchant Services in New York, and as Non-Executive Chairman of eSurg.com. He is the Chairman of a new, public-private partnership called FinTechAtlantaTMsponsored by Governor Deal, Mayor Reed, the Metro Chamber, Technology Association of Georgia (TAG) and American Transaction Processors Coalition (ATPC). Mr. McCarthy joined First Data Corp. in 2004 and has served in various roles of increasing responsibility including head of the merchant product organization, new technologies and general manager of our Asia-Pacific merchant business. He served as the 2015 Chairman of TAG and has twice served as Chairman of the statewide Georgia Technology Summit (GTS). He also is on the Boards of Woodruff Arts Center and Catholic Charities of Atlanta, where he founded the Youth Leadership Fellows Program. He has previously served on the Board of Junior Achievement of Atlanta. He has been honored with multiple industry awards, and earned an MBA from the Kellogg School of Management at Northwestern University.

CEO Compensation
  • Insufficient data for Barry to compare compensation growth.
  • Barry's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Deluxe management team in years:

2.2
Average Tenure
51.5
Average Age
  • The tenure for the Deluxe management team is about average.
Management Team

Barry McCarthy

TITLE
President
COMPENSATION
$7M
AGE
54
TENURE
0.5 yrs

Keith Bush

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
48
TENURE
2.2 yrs

Malcolm McRoberts

TITLE
Senior Vice President of Small Business Services
COMPENSATION
$2M
AGE
53
TENURE
11 yrs

Mike Mathews

TITLE
Senior VP & Chief Information Officer
COMPENSATION
$805K
AGE
45
TENURE
6 yrs

Jeffrey Cotter

TITLE
Chief Administrative Officer
AGE
51
TENURE
0.3 yrs

Ed Merritt

TITLE
Treasurer & VP of Investor Relations
COMPENSATION
$1M
AGE
51

Amanda Brinkman

TITLE
VP and Chief Brand & Communications Officer
AGE
38
TENURE
5.3 yrs

Jane Elliott

TITLE
Senior VP & Chief Human Resources Officer
AGE
52
TENURE
0.1 yrs

Pete Godich

TITLE
Senior Vice President of Financial Services & Fulfillment
COMPENSATION
$796K
AGE
53
TENURE
8.2 yrs

Tracey Engelhardt

TITLE
Senior Vice President of Direct-to-the-Consumer
AGE
53
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Deluxe board of directors in years:

9.3
Average Tenure
60.5
Average Age
  • The tenure for the Deluxe board of directors is about average.
Board of Directors

Martyn Redgrave

TITLE
Independent Chairman
COMPENSATION
$370K
AGE
65
TENURE
6.8 yrs

Barry McCarthy

TITLE
President
COMPENSATION
$7M
AGE
54
TENURE
0.5 yrs

Stephen Nachtsheim

TITLE
Independent Director
COMPENSATION
$257K
AGE
73
TENURE
23.5 yrs

Neil Metviner

TITLE
Director
COMPENSATION
$240K
AGE
59
TENURE
11.9 yrs

Tom Reddin

TITLE
Director
COMPENSATION
$277K
AGE
57
TENURE
5.3 yrs

John Stauch

TITLE
Director
COMPENSATION
$251K
AGE
53
TENURE
2.8 yrs

Cheryl Mayberry McKissack

TITLE
Director
COMPENSATION
$268K
AGE
62
TENURE
18.4 yrs

Don McGrath

TITLE
Director
COMPENSATION
$258K
AGE
69
TENURE
11.9 yrs

Ron Baldwin

TITLE
Director
COMPENSATION
$242K
AGE
71
TENURE
11.9 yrs

Victoria Treyger

TITLE
Director
COMPENSATION
$233K
AGE
48
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Nov 18 Buy Jeffrey Cotter Individual 07. Nov 18 07. Nov 18 2,035 $49.20 $100,122
09. Nov 18 Buy Keith Bush Individual 07. Nov 18 07. Nov 18 2,020 $49.60 $100,192
X
Management checks
We assess Deluxe's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Deluxe has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Deluxe Corporation (NYSE:DLX) A Smart Pick For Income Investors?

Is Deluxe Corporation (NYSE:DLX) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. A slim 3.0% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Deluxe could have potential. The company also bought back stock during the year, equivalent to approximately 13% of the company's market capitalisation at the time. There are a few simple ways to reduce the risks of buying Deluxe for its dividend, and we'll go through these below. Explore this interactive chart for our latest analysis on Deluxe! NYSE:DLX Historical Dividend Yield, May 23rd 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Deluxe paid out 43% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Deluxe paid out 24% of its free cash flow as dividends last year, which is conservative and suggests the dividend is sustainable. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Deluxe's Balance Sheet Risky? As Deluxe has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Are Deluxe Corporation's (NYSE:DLX) Interest Costs Too High?

While small-cap stocks, such as Deluxe Corporation (NYSE:DLX) with its market cap of US$2.0b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is … since poor capital management may bring about bankruptcies,

Simply Wall St -

Have Insiders Been Buying Deluxe Corporation (NYSE:DLX) Shares?

As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price … Over the last year, we can see that insiders have bought 4055 shares worth US$200k … Deluxe may have bought shares in the last year, but they didn't sell any

Simply Wall St -

Is Deluxe Corporation’s (NYSE:DLX) 19% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

How Did Deluxe Corporation's (NYSE:DLX) 16% ROE Fare Against The Industry?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Deluxe has a return on equity of 16% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Volatility 101: Should Deluxe Shares Have Dropped 35%?

That downside risk was realized by Deluxe Corporation (NYSE:DLX) shareholders over the last year, as the share price declined 35%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Instead, the change in the share price seems to reduction in earnings per share, alone.

Simply Wall St -

What Investors Should Know About Deluxe Corporation's (NYSE:DLX) Financial Strength

Help shape the future of investing tools and receive a $20 prize! … Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Deluxe Corporation (NYSE:DLX), with a market cap of US$2.2b, are often out of the spotlight. … Today we will look at DLX’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth.

Simply Wall St -

Is Deluxe Corporation (NYSE:DLX) A Smart Pick For Income Investors?

There is a lot to be liked about Deluxe Corporation (NYSE:DLX) as an income stock. … Let's dig deeper into whether Deluxe should have a place in your portfolio. … View our latest analysis for Deluxe?

Simply Wall St -

Is Deluxe Corporation's (NYSE:DLX) Balance Sheet Strong Enough To Weather A Storm?

However, an important fact which most ignore is: how financially healthy is the business? … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Is It Too Late To Consider Buying Deluxe Corporation (NYSE:DLX)?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $56.94 at one point, and dropping to the lows of $36.96. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Deluxe's current trading price of $38.03 reflective of the actual value of the?

Simply Wall St -

Company Info

Description

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 Business Services, Financial Services, and Direct Checks. The company provides checks; printed forms, such as deposit tickets, billing forms, work orders, job proposals, purchase orders, invoices, and personnel forms, as well as computer forms and check registers; and accessories and other products comprising envelopes, office supplies, ink stamps, and labels, as well as checkbook covers. It also offers Web services, which include logo and Web design, hosting and domain name, search engine marketing and optimization, email marketing, payroll, and business incorporation and organization services; and fraud protection and security, and electronic checks. In addition, the company provides financial technology solutions larger financial institutions, which comprise data-driven marketing solutions, including outsourced marketing campaign targeting and execution; treasury management solutions comprising accounts receivable processing and remote deposit capture; and digital engagement solutions consisting of loyalty and rewards programs. It operates in the North America, Australia, South America, and Europe. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. Deluxe Corporation was founded in 1915 and is headquartered in Shoreview, Minnesota.

Details
Name: Deluxe Corporation
DLX
Exchange: NYSE
Founded: 1915
$1,721,532,039
43,638,328
Website: http://www.deluxe.com
Address: Deluxe Corporation
3680 Victoria Street North,
Shoreview,
Minnesota, 55126,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DLX Common Shares New York Stock Exchange US USD 02. Jan 1969
DB DL8 Common Shares Deutsche Boerse AG DE EUR 02. Jan 1969
Number of employees
Current staff
Staff numbers
6,701
Deluxe employees.
Industry
Commercial Printing
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 23:36
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/04/26
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.