NYSE:DLX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer and fair value.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DLX's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-8.1%

DLX

-1.6%

US Commercial Services

0.7%

US Market


1 Year Return

-48.7%

DLX

11.6%

US Commercial Services

22.2%

US Market

Return vs Industry: DLX underperformed the US Commercial Services industry which returned 13.3% over the past year.

Return vs Market: DLX underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

DLXIndustryMarket
7 Day-8.1%-1.6%0.7%
30 Day17.3%7.3%11.8%
90 Day-6.8%6.4%8.6%
1 Year-46.4%-48.7%13.4%11.6%25.0%22.2%
3 Year-60.3%-63.7%52.7%43.0%49.4%39.5%
5 Year-49.3%-55.3%124.4%101.8%100.2%78.1%

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

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 ($26) is trading below our estimate of fair value ($77.7)

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 (37.8x) compared to the US Commercial Services industry average (25x).

PE vs Market: DLX is poor value based on its PE Ratio (37.8x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: DLX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: DLX is overvalued based on its PB Ratio (2.1x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

86.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLX's forecast earnings growth (86.1% per year) is above the savings rate (2.2%).

Earnings vs Market: DLX's earnings (86.1% per year) are forecast to grow faster than the US market (21.8% per year).

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

Revenue vs Market: DLX's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: DLX's revenue is forecast to decline over the next 3 years (-1.1% 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 (15.1%).


Next Steps

Past Performance

How has Deluxe performed over the past 5 years?

-45.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLX has a large one-off loss of $180.2M impacting its September 30 2020 financial results.

Growing Profit Margin: DLX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DLX's earnings have declined by 45.2% 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 (-5.9%).


Return on Equity

High ROE: DLX's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Deluxe's financial position?


Financial Position Analysis

Short Term Liabilities: DLX's short term assets ($677.9M) exceed its short term liabilities ($378.9M).

Long Term Liabilities: DLX's short term assets ($677.9M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: DLX's debt to equity ratio (204.9%) is considered high.

Reducing Debt: DLX's debt to equity ratio has increased from 72.3% to 204.9% over the past 5 years.

Debt Coverage: DLX's debt is well covered by operating cash flow (23.4%).

Interest Coverage: DLX's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLX's dividend (4.62%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: DLX's dividend (4.62%) is in the top 25% of dividend payers in the US market (4.14%)


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 (174.3%), 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).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Barry McCarthy (56 yo)

2.08yrs

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 ($USD5.28M) is above average for companies of similar size in the US market ($USD2.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Barry McCarthy
President2.08yrsUS$5.28m0.072%
$ 788.3k
Keith Bush
Senior VP & CFO3.75yrsUS$3.12m0.028%
$ 304.1k
Peter Godich
Senior VP & Chief of Operations1.17yrsUS$1.67m0.032%
$ 343.7k
Michael Mathews
Senior VP & Chief Information Officer7.58yrsUS$1.44m0.022%
$ 240.9k
Jeffrey Cotter
Chief Administrative Officer1.92yrsUS$2.34m0.0099%
$ 107.5k
Ed Merritt
Treasurer & VP of Investor Relationsno dataUS$1.25mno data
Jane Elliott
Chief Communications & HR Officerno datano data0.00095%
$ 10.3k
Tracey Engelhardt
Senior VP & GM of Checks3.75yrsno data0.050%
$ 544.0k
Amanda Brinkman
Chief Brand Officerno datano data0.011%
$ 122.1k
Amanda Parrilli
Senior Vice President of New Business Development & Strategy1.5yrsno data0.0011%
$ 11.7k
Christopher Thomas
Senior VP & Chief Revenue Officer1.42yrsno data0.022%
$ 239.3k
Garry Capers
Senior VP & GM of Cloud Solutions1.25yrsno datano data

1.9yrs

Average Tenure

52yo

Average Age

Experienced Management: DLX's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Barry McCarthy
President2.08yrsUS$5.28m0.072%
$ 788.3k
Martyn Redgrave
Independent Director19.33yrsUS$302.70k0.11%
$ 1.2m
Thomas Reddin
Independent Director6.83yrsUS$244.53k0.017%
$ 184.7k
Don McGrath
Independent Director13.5yrsUS$242.70k0.022%
$ 240.1k
Ronald Baldwin
Independent Director13.5yrsUS$240.03k0.042%
$ 453.0k
Paul Garcia
Independent Director0.33yrno datano data
Cheryl Mayberry McKissack
Independent Non-Executive Chair of the Board1.33yrsUS$267.86k0.080%
$ 867.5k
William Cobb
Independent Director0.83yrno datano data
John Stauch
Independent Director4.42yrsUS$251.03k0.042%
$ 459.4k
Victoria Treyger
Independent Director3.58yrsUS$233.03k0.011%
$ 115.4k

4.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: DLX's board of directors are considered experienced (4 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$1.089b
  • Shares outstanding: 41.89m
  • 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 segm...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:57
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
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.