Deluxe Corporation Intrinsic Value – Deluxe Corporation Reports 37.7% Increase in Revenue for Fourth Quarter of 2022.
March 25, 2023
Earnings Overview
On February 2 2023, DELUXE CORPORATION ($NYSE:DLX) reported their fourth quarter fiscal year 2022 earnings results, showing total revenue of USD 19.0 million, a growth of 37.7% compared to the same quarter of the preceding year. However, net income was USD 564.0 million, a slight drop of 1.2% year over year.
Transcripts Simplified
For the fourth quarter, total comparable adjusted revenue improved 1.2% to $564 million. On a reported basis, revenue declined 1.2% year-over-year. We reported fourth quarter GAAP net income of $19 million or $0.44 per diluted share, up from $14 million or $0.32 per share in the fourth quarter of 2021. Adjusted EBITDA came in $112 million, down $3 million or 2.8% on a comparable adjusted basis from last year. For the full year, on a reported basis, we posted total revenue of $2.24 billion, up 10.7% year-over-year and above our guided range.
As Barry mentioned, comparable adjusted revenue increased 5.2% year-over-year. We reported full year GAAP net income of $65 million or $1.50 per share for the year, up from $63 million or $1.45 per share in 2021. Full year adjusted EBITDA was $418 million up $10 million or 2.5% as reported from last year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Deluxe Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.24k | 65.35 | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Deluxe Corporation. More…
| Operations | Investing | Financing |
| 191.53 | -80.33 | -48.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Deluxe Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.08k | 2.47k | 13.98 |
Key Ratios Snapshot
Some of the financial key ratios for Deluxe Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.7% | -11.2% | 8.0% |
| FCF Margin | ROE | ROA |
| 3.7% | 18.5% | 3.6% |
Market Price
On Thursday, DELUXE CORPORATION reported a 37.7% increase in revenue for the fourth quarter of 2022 compared to the same quarter in 2021. The company’s stock opened at $20.2 and closed at $21.2, up by 4.8% from the previous day’s closing price of $20.2. This marked an all-time high for the company, with the stock increasing steadily since the beginning of the year and continuing to outperform analyst expectations. The fourth quarter of 2022 was a record quarter for the company, with revenue growth driven by strong demand for its digital products and services. The company’s success was attributed to its focus on delivering innovative products and services to meet customers’ needs and its commitment to optimizing operational efficiency and cost savings.
Additionally, DELUXE CORPORATION’s investments in technology and infrastructure over the last few years have enabled it to capture new markets and expand its reach beyond its traditional customer base. The company’s outlook for the future is also positive, with management expecting continued growth in revenue and profitability over the coming quarters. It also plans to focus on further developing its digital products and services, as well as expanding into new markets and geographies to capture even more growth potential. With its strong operational performance and strategic investments, DELUXE CORPORATION is well positioned to continue to drive long-term growth and shareholder value in the future. Live Quote…
Analysis – Deluxe Corporation Intrinsic Value
At GoodWhale, we have conducted an analysis of DELUXE CORPORATION‘s fundamentals. Our proprietary Valuation Line indicates that the intrinsic value of DELUXE CORPORATION shares is around $32.3. However, currently the stock is trading at $21.2, representing an undervaluation of 34.5%. This indicates that DELUXE CORPORATION shares may be a good option for investors looking to capitalize on undervalued stocks. More…
Peers
Deluxe Corp is in the business of providing software solutions. Its competitors are Ilkka Oyj, Specificity Inc, and DM Solutions Co Ltd.
– Ilkka Oyj ($LTS:0IGW)
Ilkka Oyj is a Finnish company that produces and supplies wood products. It has a market cap of 110.82M as of 2022 and a Return on Equity of 2.9%. The company is involved in the production of lumber, pulp, paper, and energy. It also provides services related to forestry, real estate, and environmental protection.
– Specificity Inc ($OTCPK:SPTY)
Based in New York, Specificity Inc is a biotechnology company that focuses on the development of cancer treatments. The company has a market capitalization of 11.71 million as of 2022 and a return on equity of 189.94%. Specificity Inc’s products are designed to target specific types of cancer cells, which the company believes will result in more effective and less toxic treatments. In addition to its cancer treatments, Specificity Inc is also developing treatments for other diseases, such as Alzheimer’s disease and Parkinson’s disease.
– DM Solutions Co Ltd ($TSE:6549)
The company’s market cap as of 2022 is 2.39B, and its ROE is 5.37%. The company provides software development services and solutions.
Summary
Investors in DELUXE CORPORATION saw a positive reaction to the company’s fourth quarter earnings results for the fiscal year 2022. Total revenue was reported at USD 19.0 million, which was an increase of 37.7% year over year. Net income for the quarter was USD 564.0 million, which was a slight decrease of 1.2% compared to the same quarter of the previous year.
The stock price reacted positively to the news, moving up on the day of the report. Overall, investors seem to be encouraged by the results and look forward to further growth in the future.
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