Deluxe Corp. (DLX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Warner Music Group Corp.

Deluxe Corp.

Ennis, Inc.

Cimpress Plc

Quad/Graphics, Inc.

Professional Diversity Network, Inc.

Leafly Holdings, Inc.

Travelzoo Inc.

ARC Document Solutions, Inc.

LiveOne, Inc.

CompoSecure, Inc.

Why is Deluxe Corp. ?

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 229.43 MM
ROCE(HY) Highest at 9.2%
RAW MATERIAL COST(Y) Fallen by 0.15% (YoY)

With ROCE of 10.92%, it has a very attractive valuation with a 1.02 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.49%, its profits have fallen by -13.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Deluxe Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Deluxe Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Deluxe Corp.

55.53%

0.07

43.42%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.56%

EBIT Growth (5y)

4.98%

EBIT to Interest (avg)

3.90

Debt to EBITDA (avg)

3.44

Net Debt to Equity (avg)

2.31

Sales to Capital Employed (avg)

0.99

Tax Ratio

29.31%

Dividend Payout Ratio

66.59%

Pledged Shares

Institutional Holding

95.87%

ROCE (avg)

12.01%

ROE (avg)

18.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.79

EV to EBIT

9.09

EV to EBITDA

5.93

EV to Capital Employed

1.30

EV to Sales

1.10

PEG Ratio

2.59

Dividend Yield

3.26%

ROCE (Latest)

14.26%

ROE (Latest)

14.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 273.02 MM

ROCE(HY)

Highest at 15.76%

INTEREST COVERAGE RATIO(Q)

Highest at 386.64

RAW MATERIAL COST(Y)

Fallen by 1.07% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 199.02 %

INVENTORY TURNOVER RATIO(HY)

Highest at 28.92 times

PRE-TAX PROFIT(Q)

Highest at USD 50.3 MM

NET PROFIT(Q)

Highest at USD 38.64 MM

EPS(Q)

Highest at USD 0.77

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 38.8%

Here's what is working for Deluxe Corp.

Interest Coverage Ratio

Highest at 386.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at USD 273.02 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

Highest at USD 50.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 38.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 38.64 MM has Grown at 55.49%

over average net sales of the previous four periods of USD 24.85 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.77

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 199.02 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 28.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.07% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Deluxe Corp.

Dividend Payout Ratio

Lowest at 38.8%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at USD 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income