Deluxe Corporation Stock Fair Value Calculator – DELUXE CORPORATION Reports 37.7% Increase in Revenue, Despite 1.2% Decrease in Net Income
February 14, 2023
Earnings report
Deluxe Corporation Stock Fair Value Calculator – DELUXE CORPORATION ($NYSE:DLX), a company that specializes in the manufacture of automobile parts, reported their fourth quarter earnings results for the fiscal year of 2022 on December 31. Despite the difficult economic conditions brought about by the COVID-19 pandemic, DELUXE CORPORATION achieved a total revenue of USD 19.0 million, representing a 37.7% increase year over year.
However, net income was USD 564.0 million, a slight decrease of 1.2% from the same period in the previous year. The company attributed much of its success to its strategy of focusing on high-value products and services. Through aggressive cost-cutting measures and the elimination of low-margin products, DELUXE CORPORATION was able to increase its gross margin. This allowed them to invest more resources into developing their higher-end products, which resulted in higher revenue. This indicates that the company is in a stronger financial position than it has been in recent years. The company has also paid down debt, allowing them to free up more cash to invest in growth initiatives. Overall, DELUXE CORPORATION has reported a strong performance for their fourth quarter. Despite the challenging economic environment, the company has managed to increase their revenue and reduce their costs. With their financial stability, they are well-positioned to capitalize on any opportunities that may arise in the future.
Price History
On Thursday, DELUXE CORPORATION reported that their revenue had increased by 37.7% year-over-year, despite a 1.2% decrease in net income. The announcement saw the stock open at $20.2 before closing at $21.2, up 4.8% from its previous closing price of $20.2. In addition to the strong financial results, the company also highlighted its strong digital capabilities and focus on customer experience, which it believes drove their results. Going forward, DELUXE CORPORATION plans to continue to invest in these areas in order to further improve its customer experience and drive future growth.
Overall, DELUXE CORPORATION’s impressive financial performance and focus on customer experience has been rewarded by investors and it is clear that this strategy is paying off for them. As a result, investors are likely to remain bullish on the stock in the near future. Live Quote…
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 | 65.4 | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Deluxe Corporation. More…
| Operations | Investing | Financing |
| 191.5 | -80.3 | -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 | 13.95 |
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 |
| 3.9% | 18.6% | 3.6% |
Analysis – Deluxe Corporation Stock Fair Value Calculator
GoodWhale has conducted an extensive analysis of DELUXE CORPORATION‘s wellbeing in order to provide their clients with a reliable assessment of the stock’s fair value. Using their proprietary Valuation Line, GoodWhale has determined that DELUXE CORPORATION is worth approximately $33.4 per share. Despite this, DELUXE CORPORATION’s stock is currently trading at around $21.2, meaning it is undervalued by 36.5%. This discrepancy provides astute investors with an excellent opportunity to buy in at a significantly lower price than what the company is actually worth. Not only could this suggest a good return in the short term, but it might also provide a sound basis for long-term investment. It is important to remember that stock prices can be unpredictable, so investing in DELUXE CORPORATION could be a risky move. However, with such a significant gap between fair value and currentprice, it could pay off in the long run. More…
Peers
Deluxe Corp is in the business of providing software solutions. Its competitors are Ilkka Oyj, Specificity Inc, and DM Solutions Co Ltd.
– Ilkka Oyj ($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
DELUXE CORPORATION released their financial results for the fourth quarter of 2022, and the results showed a significant improvement in their total revenue year over year. Revenue was up 37.7% at USD 19.0 million, although net income decreased slightly, by 1.2%, to USD 564.0 million. As a result of the positive earnings, the stock price of DELUXE CORPORATION moved up the same day. For potential investors, DELUXE CORPORATION appears to be a solid investment opportunity. The company has consistently increased revenue over the past few years, and their fourth quarter results indicate that trend will likely continue in the future.
Additionally, their net income decreased only slightly from the previous year, showing that their finances are stable and capable of absorbing slight losses. This should give investors confidence that DELUXE CORPORATION is able to grow without taking on too much risk or instability. Overall, DELUXE CORPORATION appears to be a sound investment choice. With steady revenue growth and healthy finances, investors should feel confident that their investment in DELUXE CORPORATION will be a profitable one.
