Home Sectors Industrials Up or Down: Deluxe Corporation (NYSE: DLX)

Up or Down: Deluxe Corporation (NYSE: DLX)

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Deluxe Corporation is part of the business services industry and industrials sector. The company CEO is Lee J. Schram. Deluxe Corp provides various business solutions. It provides printed forms to businesses, including checks, deposit tickets, billing forms, invoices and personnel forms. It also provides marketing services including web design and hosting.

Previous Intraday Trading Performance:

The DLX stock showed a previous change of -7.02% with an open at 50.50 and a close of 46.88. It reached an intraday high of 50.50 and a low of 46.42.

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Liquidity:

The stock has a market cap of $2.2b with 46.3m shares outstanding, of which the float is 45.1m shares. Trading volume reached 425,766 shares compared to its average volume of 518,956 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Deluxe Corporation shares returned -6.22% and in the past 30 trading days it returned -9.03%. Over three months, it changed -20.37%. In one year it has changed -35.15% and within that year its 52-week high was 78.87 and its 52-week low was 43.72. DLX stock is 7.22% above its 52 Week Low.

Our calculations show a 200 day moving average of 62.36 and a 50 day moving average of 50.78. Currently DLX stock is trading -24.82% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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Earnings:

The last annual fiscal EPS for the company was reported at 4.71 that ended on 31st of December 2017, which according to the previous close, that is a PE of 9.95. Based on 1 analyst estimate, the estimated EPS for the next quarter is 1.29. The TTM EPS is 5.55, which comes to a TTM PE of 8.45. Historically, the PE high was 19.80 and the PE low was 8.45. DLX stock has set a new PE low record!

The following are the last four quarter reported earnings per share:
09-30-2018:  1.36
06-30-2018:  1.40
03-31-2018:  1.39
12-31-2017:  1.40

The dividend per share is currently 1.20, which is a dividend yield of 2.38%. Also, the payout ratio is 21.62%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 121.68, which means it is possibly undervalued and has a margin of safety of 61.47%

Indicators to Watch:

Based on the latest filings, there is 68.00% of institutional ownership. Short-interest is 2,832,977, which is 6.12% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.48. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.99

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 18.59%, return on assets is 7.97%, profit margin is 8.71%, price-to-sales is 1.19 and price-to-book is 2.44.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 2  :Past Performance Score
 4  :Financial Strength Score
 4  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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