Deluxe Corporation
Deluxe Corporation Fundamental Analysis
Deluxe Corporation (DLX) shows moderate financial fundamentals with a PE ratio of 10.37, profit margin of 4.87%, and ROE of 15.49%. The company generates $2.1B in annual revenue with weak year-over-year growth of 0.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DLX's fundamental strength across five key dimensions:
Efficiency Score
WeakDLX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDLX trades at attractive valuation levels.
Growth Score
ModerateDLX shows steady but slowing expansion.
Financial Health Score
ModerateDLX shows balanced financial health with some risks.
Profitability Score
ModerateDLX maintains healthy but balanced margins.
Key Financial Metrics
Is DLX Expensive or Cheap?
P/E Ratio
DLX trades at 10.37 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DLX's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Deluxe Corporation at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.83 times EBITDA. This is generally considered low.
How Well Does DLX Make Money?
Net Profit Margin
For every $100 in sales, Deluxe Corporation keeps $4.87 as profit after all expenses.
Operating Margin
Core operations generate 12.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.49 in profit for every $100 of shareholder equity.
ROA
Deluxe Corporation generates $4.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Deluxe Corporation produces operating cash flow of $269.98M, showing steady but balanced cash generation.
Free Cash Flow
Deluxe Corporation produces free cash flow of $176.31M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.85 in free cash annually.
FCF Yield
DLX converts 16.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How DLX Stacks Against Its Sector Peers
| Metric | DLX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.37 | 24.28 | Better (Cheaper) |
| ROE | 15.49% | 979.00% | Weak |
| Net Margin | 4.87% | -68740.00% (disorted) | Weak |
| Debt/Equity | 2.06 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.15 | 1.71 | Neutral |
| ROA | 4.07% | -6989.00% (disorted) | Weak |
DLX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Deluxe Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.78%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
1397.27%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
14.60%
Industry Style: Growth, Technology, Streaming
High Growth