NYSE:DLX

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

Good value with adequate balance sheet and pays a dividend.


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


Market Performance


7 Day Return

-2.6%

NYSE:DLX

0.6%

US Commercial Services

2.1%

US Market


1 Year Return

-26.4%

NYSE:DLX

5.1%

US Commercial Services

-0.04%

US Market

DLX underperformed the Commercial Services industry which returned 5.1% over the past year.

DLX underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

DLXIndustryMarket
7 Day-2.6%0.6%2.1%
30 Day3.1%-1.9%-3.2%
90 Day11.7%2.8%2.8%
1 Year-24.4%-26.4%9.2%5.1%2.2%-0.04%
3 Year-31.8%-35.9%62.5%51.5%41.5%32.3%
5 Year-18.2%-26.0%95.7%76.0%55.0%37.8%

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

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Deluxe is good value based on earnings compared to the US Commercial Services industry average.

Deluxe is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Deluxe is good value based on expected growth next year.


Price Based on Value of Assets

Deluxe is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

37.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Deluxe's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

Deluxe's earnings are expected to grow significantly at over 20% yearly.

Deluxe's revenue growth is positive but not above the United States of America market average.

Deluxe's earnings growth is expected to exceed the United States of America market average.

Deluxe's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Deluxe will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Deluxe performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Deluxe has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Deluxe used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Deluxe's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Deluxe's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Deluxe's level of debt (106.4%) 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 (112.4% vs 106.4% today).

Debt is well covered by operating cash flow (31.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).


Balance Sheet

Low level of unsold assets.

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?

2.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Deluxe's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Deluxe's dividend is below the markets top 25% of dividend payers in United States of America (3.82%).

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

Dividends paid are covered by earnings (1.9x 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.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Barry McCarthy (55yo)

0.8yrs

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

Barry's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Barry to compare compensation growth.


Management Age and Tenure

2.4yrs

Average Tenure

52.5yo

Average Age

The tenure for the Deluxe management team is about average.


Board Age and Tenure

9.6yrs

Average Tenure

61.5yo

Average Age

The tenure for the Deluxe board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$100,12209 Nov 18
Jeffrey Cotter
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares2,035
Max PriceUS$49.20
BuyUS$100,19209 Nov 18
Keith Bush
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,020
Max PriceUS$49.60

Ownership Breakdown


Management Team

  • Barry McCarthy (55yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$7.35m
  • Ed Merritt (52yo)

    Treasurer & VP of Investor Relations

    • Tenure: 0.0yrs
    • Compensation: US$1.25m
  • Malcolm McRoberts (54yo)

    Special Advisor to CEO

    • Tenure: 11.3yrs
    • Compensation: US$1.65m
  • Jeffrey Cotter (52yo)

    Chief Administrative Officer

    • Tenure: 0.6yrs
  • Pete Godich (54yo)

    Senior Vice President of Financial Services & Fulfillment

    • Tenure: 8.4yrs
    • Compensation: US$795.95k
  • Keith Bush (49yo)

    Senior VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$1.97m
  • Amanda Brinkman (39yo)

    VP and Chief Brand & Communications Officer

    • Tenure: 5.6yrs
  • Jane Elliott (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.3yrs
  • Tracey Engelhardt (54yo)

    Senior Vice President of Direct-to-the-Consumer

    • Tenure: 2.4yrs
  • Mike Mathews (46yo)

    Senior VP & Chief Information Officer

    • Tenure: 6.3yrs
    • Compensation: US$805.10k

Board Members

  • Stephen Nachtsheim (74yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$257.03k
  • Martyn Redgrave (66yo)

    Independent Chairman

    • Tenure: 7.0yrs
    • Compensation: US$369.53k
  • Tom Reddin (58yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$276.53k
  • Don McGrath (70yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$258.03k
  • Ron Baldwin (72yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$241.53k
  • Cheryl Mayberry McKissack (63yo)

    Director

    • Tenure: 18.7yrs
    • Compensation: US$268.03k
  • Barry McCarthy (55yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$7.35m
  • Neil Metviner (60yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$239.53k
  • John Stauch (54yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$251.03k
  • Victoria Treyger (49yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$233.03k

Company Information

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


Key Information

  • Name: Deluxe Corporation
  • Ticker: DLX
  • Exchange: NYSE
  • Founded: 1915
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: US$1.891b
  • Shares outstanding: 42.93m
  • 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 Analysis2019/08/23 23:36
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.