Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Attractive stocks have exceptional fundamentals. In the case of Deluxe Corporation (NYSE:DLX), there's is a financially-healthy company with a a strong history high-grade dividend payments, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Deluxe here.
Very undervalued with adequate balance sheet and pays a dividend
DLX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that DLX has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. DLX seems to have put its debt to good use, generating operating cash levels of 0.31x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. DLX's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if DLX's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, DLX's share price is trading below the group's average. This supports the theory that DLX is potentially underpriced.
DLX is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Deluxe, there are three fundamental factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for DLX’s future growth? Take a look at our free research report of analyst consensus for DLX’s outlook.
- Historical Performance: What has DLX's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DLX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.