DLX - Embedded Expectations Analysis - 2018 09 10
Deluxe Corporation (DLX:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.9x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their acquisition of ColoCrossing and Logomix, growing their business, and sustaining elevated revenue levelsSpecifically, management may be concerned that their acquisition of ColoCrossing web services will not add meaningful scale to their existing web services business. Moreover, they may lack confidence in the scalability,
up-selling and cross-selling capabilities of their newly acquired LogoMix platform, and in their ability to achieve growth in their data-driven marketing segment through further acquisitions. Also, they may lack confidence in their ability to sustain elevated revenue levels in marketing solutions and other services business units, and to develop new operational annuity growth solutions. Furthermore, they may lack confidence in their ability to drive growth through investments in processes, products and services, and may be concerned about continued underperformance of their checks, forms and accessories segments
Deluxe is engaged in providing payment solutions. The company's marketing solutions and other services provides products and services designed to meet its customers' sales and marketing needs, as well as various other service offerings. The company's forms, accessories and other products provides printed business forms, including deposit tickets, billing forms, work orders, job proposals, purchase orders, invoices and personnel forms, as well as computer forms compatible with accounting software packages commonly used by small businesses. The company also provides other customized products, including envelopes, office supplies, ink stamps, labels, deposit tickets, check registers and checkbook covers.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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