NYSE:DLX

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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: DLX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.4%

DLX

9.4%

US Commercial Services

9.4%

US Market


1 Year Return

-34.9%

DLX

-11.6%

US Commercial Services

-6.8%

US Market

Return vs Industry: DLX underperformed the US Commercial Services industry which returned -14.6% over the past year.

Return vs Market: DLX underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

DLXIndustryMarket
7 Day32.4%9.4%9.4%
30 Day3.5%-14.8%-3.9%
90 Day-36.6%-21.1%-16.5%
1 Year-33.1%-34.9%-8.5%-11.6%-4.8%-6.8%
3 Year-52.7%-55.7%23.8%15.8%23.4%15.2%
5 Year-50.1%-55.1%46.7%31.1%41.3%25.7%

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 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: DLX ($30.09) is trading below our estimate of fair value ($69.68)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DLX is overvalued based on its PB Ratio (2.2x) compared to the US Commercial Services industry average (1.2x).


Next Steps

Future Growth

How is Deluxe forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

108.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: DLX's revenue is expected to decline over the next 3 years (-5% per year).

High Growth Revenue: DLX's revenue is forecast to decline over the next 3 years (-5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLX's Return on Equity is forecast to be high in 3 years time (31.1%)


Next Steps

Past Performance

How has Deluxe performed over the past 5 years?

-24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLX is currently unprofitable.

Growing Profit Margin: DLX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DLX is unprofitable, and losses have increased over the past 5 years at a rate of -24.6% per year.

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

Earnings vs Industry: DLX is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (2.5%).


Return on Equity

High ROE: DLX has a negative Return on Equity (-35.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Deluxe's financial position?


Financial Position Analysis

Short Term Liabilities: DLX's short term assets ($472.2M) exceed its short term liabilities ($407.9M).

Long Term Liabilities: DLX's short term assets ($472.2M) do not cover its long term liabilities ($964.5M).


Debt to Equity History and Analysis

Debt Level: DLX's debt to equity ratio (155%) is considered high.

Reducing Debt: DLX's debt to equity ratio has increased from 86.4% to 155% over the past 5 years.

Debt Coverage: DLX's debt is well covered by operating cash flow (32.4%).

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


Balance Sheet


Next Steps

Dividend

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

3.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLX's dividend (3.99%) is higher than the bottom 25% of dividend payers in the US market (1.89%).

High Dividend: DLX's dividend (3.99%) is low compared to the top 25% of dividend payers in the US market (5.26%).


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: DLX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DLX's dividends in 3 years are forecast to be well covered by earnings (24% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Barry McCarthy (55yo)

1.42s

Tenure

US$5,275,869

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 ($USD5.28M) is about average for companies of similar size in the US market ($USD4.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Barry McCarthy
President1.42yrsUS$5.28m0.032% $412.3k
Keith Bush
Senior VP & CFO3.08yrsUS$3.12m0.028% $352.0k
Peter Godich
Senior VP & Chief of Operations0.50yrUS$1.67m0.031% $397.7k
Michael Mathews
Senior VP & Chief Information Officer6.92yrsUS$1.44m0.022% $278.8k
Jeffrey Cotter
Chief Administrative Officer1.25yrsUS$2.34m0.011% $135.2k
Ed Merritt
Treasurer & VP of Investor Relationsno dataUS$1.25mno data
Jane Elliott
Senior VP & Chief Human Resources Officer1yrno datano data
Tracey Engelhardt
Senior VP & GM of Checks3.08yrsno data0.050% $629.5k
Amanda Brinkman
Chief Brand Officerno datano data0.011% $141.3k
Amanda Parrilli
Senior Vice President of New Business Development & Strategy0.83yrno data0.0011% $13.6k

1.3yrs

Average Tenure

52yo

Average Age

Experienced Management: DLX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Barry McCarthy
President1.42yrsUS$5.28m0.032% $412.3k
Stephen Nachtsheim
Independent Director24.42yrsUS$241.86k0.0085% $107.8k
Martyn Redgrave
Independent Director18.67yrsUS$302.70k0.11% $1.4m
Thomas Reddin
Independent Director6.17yrsUS$244.53k0.0093% $117.9k
Don McGrath
Independent Director12.83yrsUS$242.70k0.022% $277.8k
Ronald Baldwin
Independent Director12.83yrsUS$240.03k0.041% $524.3k
Cheryl Mayberry McKissack
Non-Executive Chair of the Board0.67yrUS$267.86k0.079% $1.0m
Neil Metviner
Independent Director12.83yrsUS$241.03k0.038% $488.5k
John Stauch
Independent Director3.75yrsUS$251.03k0.029% $370.9k
Victoria Treyger
Independent Director2.92yrsUS$233.03k0.011% $133.4k

9.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DLX's board of directors are considered experienced (9.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.269b
  • Shares outstanding: 42.19m
  • Website: https://www.deluxe.com

Number of Employees


Location

  • Deluxe Corporation
  • 3680 Victoria Street North
  • Shoreview
  • Minnesota
  • 55126-2966
  • 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 printed business forms, checks, 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 marketing materials and promotional solutions, such as postcards, brochures, retail packaging supplies, apparel, greeting cards, and business cards; and treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing, and paperless treasury management, as well as software, hardware and digital imaging solutions. It also offers Web services comprising web hosting and domain name, logo and web design, payroll, email marketing, search engine marketing and optimization, and business incorporation and organization services; strategic targeting, lead optimization, retention, and cross-selling services; and fraud protection and security services, electronic checks and deposits, and digital engagement solutions, including loyalty and rewards programs and financial management tools. In addition, the company provides checks; printed business forms, such as deposit tickets, billing forms, work orders, job proposals, purchase orders, invoices, and personnel forms, as well as computer forms; and customized products comprising envelopes, office supplies, ink stamps, labels, check registers, and checkbook covers. It operates in the United States, Canada, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 01:18
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.