Corporate Webpages Deluxe Corporation
Deluxe Corporation is known primarily for its check printing
operation. It does perform other services for banks and
financial institutions. Selecting a stock on the basis of the
industry group in which it performs can be tricky. For example,
"business services" could include building maitenance which is
performing well, or "commercial printing" which is closer to
neutral. The latter is highly dependent upon the economy as a
whole. Many classifiers will lump ABM (American Building
Maintenance) Corp. together with Deluxe Check Printers (DLX) in
the same category. DLX is holding up the best of commercial
printing companies but our industry group method of finding hot
stocks somewhat got distracted by high marks DLX receives from
certain research organizations, compared to building maintenance
companies.
Check printing for banks is highly competitive, and Deluxe must
move away toward other financial services that have more
favorable growth prospects. Deluxe has certainly given a lot of
thought to this, but at least 45% of revenues are still coming
from check printing. We were a little surprised to see regular
bank stock checks coming from a number of large banks with whom
we do business being printed by Harland and other printers,
unlike the past. But perhaps even more importantly, in addition
to the competition, check-writing has decreased substantially
after the rise of the Internet and use of online bill-paying.
The absence of ease of access to the most recent annual report or
chairman's letter for the company on its main website was an issue
of curiosity for us (they happily presented quarterly reports), but
the information was readily available elsewhere. Perhaps the
company wishes to downplay that 2011 was a critical and pivotal
year for Deluxe (in their own words) where some refocus is necessary.
If you are looking for high-flyers possibly Zenith is not the
place. We like to trade stocks that are relatively stable and
more importantly, predictable. Deluxe seems to fit well into
that category. It has enough volatility to be tradeable, but is
not apt to hit you with a very unpleasant 50% one-day drop when
you are long.
Deluxe has a marginal Zenith Index. One of the principal
problems there is a low book value and a very high percentage of
intangible assets on the balance sheet.
Researchers and analysts like the stock, think it may have a
possible imminent breakout. Institutions were selling but have
switched to buying overall again in the latest quarter.
12-08-2011: Deluxe Corporation (DLX): Online Bill-Paying Causes Check Writing Decline
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Right Time Study
Channel Potential
Intraday Chart
Stock Fetcher
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Wall Street Analyzer
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Time Series Forecast
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Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Deluxe Corp. (DLX ) Sector: Services
3680 Victoria Street North Industry: Business Services
Shoreview, MN 55126-2966 Exchange: NYSE
Deluxe Corporation, together with its subsidiaries, provides personalized
printed products, promotional products, and merchandising materials in the
United States, Canada, and Europe. Its Small Business Services segment
offers printed products, including business checks, promotional products,
marketing materials, and related services, as well as retail packaging
supplies and a suite of business services comprising Web design and
hosting, fraud protection, payroll, logo design, search engine marketing,
business networking, and other Web-based services to small businesses.
This segment also offers printed forms, such as billing forms, work
orders, job proposals, purchase orders, invoices, and personnel forms;
computer forms; and stationery, letterhead, envelopes, greeting cards and
labels, and business cards in various formats and ink colors. It sells its
products through mail and the Internet, referrals from financial
institutions and telecommunications clients, independent distributors and
dealers, and sales representatives. The company-Ęs Financial Services
segment provides check programs for personal and business checks, fraud
prevention and monitoring services, customer acquisition campaigns,
marketing communications, regulatory program services, and customer
primarily through direct sales force. Its Direct Checks segment sells
personal and business checks, and related products and services directly
to consumers through direct response marketing and the Internet. Deluxe
also offers online financial management tools that provide banks with
daily access to their financial position and general ledger information.
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.
Last Trade: 22.68 52-Week Range: 29.30 - 17.50
Trade Date: 12-06 Avg. Volume: 424,311 Shares
Index Membership: Employees: 5,765
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation (Medium
Concern), Shareholder Rights (Medium Concern).
EPS: 2.70 Dividend Amount: $ 1.00 Yield: 4.50%
Ex-Dividend Date: Nov 17, 20 Mkt Cap: $ 1,150,000K
Payout Ratio: 37.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 1,900,000K Revenue (ttm) : $ 1,400,000K
Gross Profit: $ 913,820K
Earnings before Income Tax, Depreciation and Amortization: $ 351,980K
Enterprise Value/Revenue (ttm): 1.35 Revenue per Share: $ 27.44
Enterprise Value/EBITDA (ttm): 5.39 Qtrly Rev Growth (y to y): -3.40%
P/E Ratio (fwd projected): 7.11 P/E Ratio (current): 8.40
P/E Growth Ratio (5 yr expected): 1.17 Operating Margin: 19.70%
Price/Sales Ratio: 0.82 Profit Margin: 9.95%
Price/Book Value: 4.05 Book Value: $ 5.58/sh.
Return on Assets: 12.73% Net Income Avl to Common: $ 138,850K
Return on Equity: 57.47% Diluted Earnings/Share: $ 2.70
Qrtly Earnings Growth (yoy): -27.70%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 24,960K Operating Cash Flow:$ 213,380K
Total Debt: $ 775,590K Lvgd Free Cash Flow:$ 194,340K
Total Debt/Equity: 273.70
Total Cash/Share: $ 0.49
Current Ratio: 0.74
Share Statistics: Stock Price History:
Shares Outstanding: 50,820K Stk 52-Week Change: 0.18%
Float: 50,180K S&P 500 52-Wk Chng: 2.72%
Sh. Short % of Float: 10.60% 50-Day Moving Avg: 22.76
Short Ratio: 11.90 200-Day Moving Avg: 22.50
% Held by Institutions: 76.70% Beta: 2.08
% Held by Insiders: 0.91%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec 11 Mar 12 Dec 11 Dec 12
Average Earnings Estimate 0.81 0.78 3.09 3.19
Average Revenue Estimate 65M 357M 1,420M 1,440M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 3.759 EPS Growth (Qrtly YoY): 2.365
PEG Ratio (ttm, 5 yr expected): 8.592 P/E Ratio (ttm): 50.108
Revenue Growth (Qrtly YoY): 1.671
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 1,402,237 1,344,195 1,468,662
Cost of Revenue 488,419 504,782 566,513
Gross Profit 913,818 839,413 902,149
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 624,303 616,496 670,991
Non-Recurring Expenses 7,971 32,328 21,924
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 281,544 190,589 209,234
Income from Continuing Operations:
Total Other Income/Expenses Net -1,430 10,712 1,363
Earnings Before Interest & Taxes 280,114 201,301 210,597
Interest Expense 44,165 46,280 50,421
Income Before Taxes 235,949 155,021 160,176
Income Tax Expense 82,554 55,656 54,304
Minority Interest 0 0 0
Net Income from Continuing Op.s 153,395 99,365 105,872
Non-recurring Events:
Discontinued Operations -771 0 -4,238
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 152,624 99,365 101,634
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 152,624 99,365 101,634
Quarterly Income Statements: All numbers in thousands)
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Total Revenue 355,144 346,274 349,752 351,488
Cost of Revenue 122,638 120,686 120,163 126,683
Gross Profit 232,506 225,588 229,589 224,805
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 162,524 157,527 160,817 157,984
Non-Recurring Expenses 4,337 4,075 1,427 5,960
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 65,645 63,986 67,455 60,861
Income from Continuing Operations:
Total Other Income/Expenses Net -302 -69 -6,730 -413
Earnings Before Int. & Taxes 65,343 63,917 60,615 60,448
Interest Expense 11,830 12,054 12,038 10,915
Income Before Taxes 53,513 51,863 48,577 49,533
Income Tax Expense 16,778 16,390 16,021 14,708
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 36,735 35,473 32,556 34,825
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 36,735 35,473 32,556 34,825
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 36,735 35,473 32,556 34,825
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 17,383 12,789 41,668
Short Term Investments 0 0 0
Net Receivables 75,861 76,405 86,397
Inventory 21,660 22,122 25,791
Other Current Assets 56,333 48,183 13,230
Total Current Assets 171,237 159,499 167,086
Long-Term Investments 37,410 39,200 36,794
Property, Plant & Equipt 124,748 126,324 128,105
Goodwill 725,937 658,666 653,044
Intangible Assets 155,112 145,910 154,081
Accumulated Amortization 0 0 0
Other Assets 94,247 81,611 59,686
Deferred Long Term Asset Charges 0 0 20,189
Total Assets 1,308,691 1,211,210 1,218,985
Current Liabilities:
Accounts Payable 204,512 217,048 204,197
Short/Current Long Term Debt 7,000 26,000 79,440
Other Current Liabilities 0 0 0
Total Current Liabilities 211,512 243,048 283,637
Long Term Debt 748,122 742,753 773,896
Other Liabilities 76,107 83,399 98,895
Deferred LT Liability Charges 46,752 24,800 9,491
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 1,082,493 1,094,000 1,165,919
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 51,338 51,189 51,131
Retained Earnings 161,957 60,768 12,682
Treasury Stock 0 0 0
Capital Surplus 62,915 58,071 54,207
Other Stockholder Equity -50,012 -52,818 -64,954
Total Stockholder Equity 226,198 117,210 53,066
Net Tangible Assets -654,851 -687,366 -754,059
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Current Assets:
Cash & Cash Equivalents 57,632 61,030 81,195 17,383
Short Term Investments 0 0 0 0
Net Receivables 73,736 73,801 70,601 75,861
Inventory 22,486 21,359 20,703 21,660
Other Current Assets 26,602 26,986 20,745 56,333
Total Current Assets 180,456 183,176 193,244 171,237
Long-Term Investments 44,768 38,288 37,947 37,410
Property, Plant & Equipt 120,710 121,018 123,594 124,748
Goodwill 776,944 752,289 725,993 725,937
Intangible Assets 163,710 152,525 145,522 155,112
Accumulated Amortization 0 0 0 0
Other Assets 100,799 87,680 90,318 94,247
Deferred LT Asset Charges 0 0 0 0
Total Assets 1,387,387 1,334,976 1,316,618 1,308,691
Current Liabilities:
Accounts Payable 209,561 195,300 206,756 204,512
Current Portion LT Debt 33,000 13,000 0 7,000
Other Current Liabilities 0 0 0 0
Total Current Liabilities 242,561 208,300 206,756 211,512
Long Term Debt 742,592 739,966 739,204 748,122
Other Liabilities 66,937 71,471 73,637 76,107
Deferred LT Liab. Charges 51,926 49,596 49,416 46,752
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 1,104,016 1,069,333 1,069,013 1,082,493
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 50,817 51,026 51,395 51,338
Retained Earnings 228,326 204,323 181,632 161,957
Treasury Stock 0 0 0 0
Capital Surplus 54,712 57,855 63,031 62,915
Other Stockholder Equity -50,484 -47,561 -48,453 -50,012
Total Stockholder Equity 283,371 265,643 247,605 226,198
Net Tangible Assets -657,283 -639,171 -623,910 -654,851
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 152,624 35,473 101,634
Operating Activites:
Depreciation 93,660 92,315 90,578
Adjustments to Net Income 40,085 48,879 44,985
Changes in Accounts Recv'bls -3,962 -1,481 10,578
Changes in Liabilities -72,114 -38,727 -53,206
Changes in Inventories -470 2,793 321
Changes in Other Op'ing Actv's 0 2,794 4,592
Total Cash Flow fr Operations 212,615 206,438 199,482
Investing Activities:
Capital Expenditures -43,932 -44,266 -31,865
Investments 1,956 -3,667 0
Other Cash Flows fr Investing 0 -33,855 -103,908
Total Cash Flows fr Investing -136,170 -81,788 -135,773
Financing Acitivies:
Dividends Paid -51,435 -51,279 -51,422
Sale or Purchase of Stock 268 653 -19,046
Net Borrowings -22,054 -77,987 9,045
Other Cash Flows fr Financing 0 0 -6,258
Total Cash Flows fr Financing -72,541 -128,545 -67,681
Effect of Exchange Rate Change 690 1,594 -2,053
Change in Cash & Cash Equiv.s 4,594 -2,801 -6,025
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Net Income 36,735 35,473 32,556 34,825
Operating Activites:
Depreciation 21,851 23,178 24,170 24,301
Adjustments to Net Income 4,977 4,558 14,298 18,578
Changes in Accounts Recv'bls -1,522 -4,828 4,524 -5,851
Changes in Liabilities 11,257 -11,386 -11,153 -44,450
Changes in Inventories -317 -890 746 -176
Changes in Other Oper'g Acts 0 -2,963 -4,101 14,904
Total Cash Flow f Operations 67,065 43,142 61,040 42,131
Investing Activities:
Capital Expenditures -8,930 -10,874 -8,422 -12,319
Investments 0 0 0 -14
Other Cash Flows fr Investing 0 -36,055 41 528
Total Cash Flows fr Investing -65,236 -46,929 -8,381 -11,805
Financing Acitivies:
Dividends Paid -12,732 -12,782 -12,881 -12,849
Sale or Purchase of Stock -4,551 -11,119 -353 189
Net Borrowings 22,887 12,920 -22,855 -24,459
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 5,222 -10,569 -38,617 -34,474
Effect of Exchange Rate Chg 0 0 0 130
Change in Cash & Cash Equiv. 5,395 -14,226 14,469 -3,708
DLX Deluxe Corp. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 3.0000 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 1.5100 Forward P/E Ratio < 28? 3.0000
Sales Tests:
Price/Sales Ratio < 2.3? 2.8049 Inventory/Sales < 5%? 3.0000
Sales < $1 billion? 0.7131 Operating Margin < 7.5%? 0.3807
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0015 Long-Term Debt Service: 0.3024
LTD Being Reduced? 1.2000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.3700 Working Capital >= 1.5? 2.6883
Leverage Ratio < 20%? 0.4302 Debt / Assets < 1? 1.7493
Quick Ratio > 1? 0.5416 Inventory Turnover > 1? 0.1348
Shares Out Decreasing? 1.8000 Market Cap.> 1.5 Billion? 1.3043
Profit Margin > 7.5%? 1.3266
Income Tests:
Dividend Yield > 2.0%? 1.3333 EPS Annual Growth > 10%? -0.2800
Enterprise Value/Revenue: 0.9000 EPS 5-yr Growth > 20%? 0.7620
Enterprise Value/EBITDA: 0.7700 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? -2.7700 Collection < 45 days? 2.2789
Rev. Qtrly Growth > 15%? -0.5100 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? -0.2800 Borrowing Int. Rate< 6%? 1.5973
Stock Performance Tests:
Volatility > 25%? 2.0171 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 1.6640 % Held by Institut. < 50? 0.6519
50 Da MA > 200 Da MA? 0.0344 % Held by Institut. > 30? 2.5567
52-Wk Change vs. S&P 500: 0.1813 Short Ratio > 5? 2.3800
Price/Book Value < 3? -0.0500 Short % of Float > 20? 0.5300
Return on Assets > 17%? 0.7488 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.0980 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 0.4227
Cash Flow / Assets >.10? 1.4008
DLX Deluxe Corp. Overall Zenith Index: 1.2412
Financial Statements |
Income Statement:
Balance Sheet:
Cash Flow Statement:
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Deluxe Corporation:
Symbol? DLX
Total Months Available: 48
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
27.48 21.29 29.30 22.11 24.83 17.50
RANGE = 29.30 TO 17.50 Close = 22.46
CHANNEL = 24.83 TO 22.11 Degree = 2
Volatility = 12.11% Index = 2
Intraday Chart |
2 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | - 1 |
| Cash Flow | + 1 |
| Ratios | - 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | + 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | + 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | + 1 |
| Standard & Poor's | - 1 |
| Moving Average | + 1 |
| Right Time Study | - 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 11 |
Place 1,330 shares of Deluxe Corporation (DLX) on the Active List.
