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Is this Large Market Cap Stock target price reasonable for Deluxe Corp. (NYSE:DLX)?

The company in question is, Deluxe Corp. (NYSE:DLX) currently with a stock price of 65.6 (-0.29% today). The market cap for Deluxe Corp. is 3228.97, and is in the sector Services, and Business Services industry. The target price for Deluxe Corp. is 74.25. Currently Deluxe Corp. is trading with a P/E of 13.98, and a forward P/E of 12.59. Average volume for Deluxe Corp. is 229.82 and so far today it is 64362.

Performance in the last year for Deluxe Corp. has been 13.16%. For EPS growth, Deluxe Corp. has seen a growth of 10.10%, and is looking to grow in the next year to 6.13%. More long term stats show that EPS growth has been 7.80% over the last five years and could be 7.50% for the next five years. Deluxe Corp. has seen sales growth quarter over quarter at 3.40%, with EPS growth quarter over quarter at 7.30%. The 20-day simple moving average is -2.97%, with the 200-day simple moving average coming to 5.44%.

Since the IPO date for Deluxe Corp. on the 7/23/1987, Deluxe Corp. has seen performance year to date to be 22.44%. With Deluxe Corp. trading at 65.6, the dividend yield is 1.82%, and the EPS is 4.71.

So could Deluxe Corp., be undervalued? Well as said before P/E is 13.98. The PEG is 1.86, P/S is 1.78 and the P/B is at 3.92. The P/cash is 46.39, with P/free cash flow at 17.46.

Deluxe Corp. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 1. This is with long term debt/equity at 0.75, and total debt/equity at 0.75.

In terms of margins, Deluxe Corp. has a gross margin of 63.90%, an operating margin of 20.10% and a profit margin of 12.80%.Payout ratio for Deluxe Corp. is 25.40%. Return on assets come to 12.80% with return on investment coming to 13.10%.

Insider ownership for Deluxe Corp., is at 0.80% and institutional ownership comes to 92.80%. Outstanding shares are at 49.08. While shares float is 48.1. The float short is currently 10.15%, and short ratio is 21.24.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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