Will Deluxe Corporation’s (DLX) Earnings Grow In The Year Ahead?
Deluxe Corporation (NYSE:DLX) is predicted to grow its earnings per share by a robust double-digit 22.85% over the next three years. With the recent EPS being $4.712, expected growth will push the upcoming EPS to $5.788. I am going to look at the latest data on DLX to assess whether this expected growth is reasonable. See our latest analysis for DLX
Exciting times ahead for DLX
Analyst expectation from the stock’s 3 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $4.712 to $5.788 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 22.85% over the next few years. During the same time and profits (net income) are predicted to slightly grow from $228M to $280M in the next couple of years, roughly staying around the same level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. DLX’s earnings growth in the last five years was a low 8.77%, indicating a relatively more optimistic future painted for the company in the future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
Next Steps:
For DLX, I’ve put together three essential factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is DLX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DLX is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DLX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
