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Scott Wachsler
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I manage Wax, a baseline equity research company comprised of individual investors not licensed or registered with any government agency. I have been all cap value investor and independent equity researcher for the past 30 years, and believe that patience is the key to successful... More
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Wax Ink
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Wax Ink
  • Deluxe Corporation Value Alert 0 comments
    Aug 12, 2014 5:19 AM | about stocks: DLX

    Texas (August 11, 2014) Wax Ink has issued a Negative Investment Interest opinion for Deluxe Corporation (NYE: DLX), based on a recent intrinsic value review that placed fair value for the company between $31-$39.

    A Negative Investment Interest opinion (sell) means that the current key performance indicators (KPIs) and associated financial metrics do not favor a position in this stock as an active investment at this time.

    The recent close of $56.76 is approximately 201% above a fair value buy target for the stock and approximately 46% above a fair value close target for the stock. The recent close is also 3% below analysts' twelve-month $58.50 median price target for the stock.

    The recent close represents a 34% increase in the one-year price of the stock, while year-over-year sales increased 5%, year-over-year earnings increased 10%, year-over-year debt decreased 1%, and year-over-year free cash flow increased 4%.

    The company paid a dividend of $1.01, a year-over-year increase of 0%.

    The stock currently has a trailing twelve-month PE Ratio of 14, and a PEG Ratio of 2.0 basis estimated forward earnings growth of 7%.

    In the past 52 weeks, share prices have moved between a high of $60.52 and a low of $38.12, placing current equilibrium at $54.54. With the recent close, the stock is trading 6% below the 52 week high, 33% above the 52 week low, and 4% above current equilibrium.

    The three-month average daily trading volume for this stock is approximately 0.258 million shares and the recent average daily trading volume is approximately 0.277 million shares. There are approximately 3.69 million short interest shares which places the days to cover at 17.5.

    Deluxe Corporation provides customized checks and forms, Web-site development and hosting, search engine marketing and optimization, and logo design services to small businesses and financial institutions.

    The company's listed competitors include Harland Clarke Corporation, MDC Partners, Inc., and R.R. Donnelley and Sons Company.

    Financial information contained in this alert, was taken from the company's most recent annual SEC filing for year ending December 31, 2013. Unless otherwise noted, all prices are per share.

    At this time Wax Ink has no investment position in any company mentioned in this alert. This alert is for use by Accredited Investors as defined under Title 17, CFR §230.500, Regulation D.

    Wax Ink is a baseline equity research company not licensed or registered with any government agency focusing on long-term investment opportunities.

    Copyright © 2014 Wax Ink

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: DLX
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