Deluxe (DLX) AI Stock Analysis

• Market Cap: $858.21M
• Dividend Yield: 6.28%
• Average Volume (3M): 386.80K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.34
• Revenue Growth: -1.92%
• EPS Growth: 49.63%
• Country: US
• Employees: 4,981
• Sector: Industrials
• Sector Strength: 78
• Industry: Advertising Agencies
• EPS (TTM): 0.88
• Shares Outstanding: 44,885,246
• 10 Day Avg. Volume: 508,419
• 30 Day Avg. Volume: 386,802
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.57
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 9.30
• 1Y Price Target: $24.00
• Price Target Upside: 26.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $21.00 ▲(10.35% Upside)

Deluxe's overall stock score reflects strong technical momentum and positive corporate events, balanced by stable but challenged financial performance. The company's valuation is attractive, and recent earnings call insights are encouraging, despite revenue challenges.

Positive Factors

Financial Performance

Deluxe exceeded profitability expectations despite revenue challenges, driven by efficiencies that boosted EBITDA and free cash flow.

Future Prospects

The full rollout of North Star in 2025 will enhance margins and cash flow, aiding strategic reinvestment into the business and debt reduction.

Strategic Growth

The company's 2025 guidance reflects management's strategy to grow its high-margin, technology-driven business lines while maintaining strong financial discipline and steady cash generation.

Negative Factors

Financial Outlook

Moderating FY25 estimates to reflect a measured financial outlook.

Revenue and Earnings

Revenue and EBITDA softness overshadowed the beat in 4Q FCF.

Deluxe Business Overview & Revenue Model

Company Description

Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, Australia, South America, and Europe. It operates through four segments: Payments, Cloud Solutions, Promotional Solutions, and Checks. The company provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing, and paperless treasury management solutions, as well as payment exchange, and fraud and security services; web hosting and design services, data-driven marketing solutions and hosted solutions, such as digital engagement, logo design, financial institution profitability reporting, and business incorporation services. It also offers business forms, accessories, advertising specialties, promotional apparel, and retail packaging services; and printed personal and business checks. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. Deluxe Corporation was founded in 1915 and is headquartered in Shoreview, Minnesota.

How the Company Makes Money

Deluxe generates revenue through multiple streams, primarily from its core offerings in payment solutions and marketing services. The company earns money by providing check printing and payment processing services to businesses, which includes fees for transactions and subscription services. Additionally, Deluxe generates income from marketing services by offering digital advertising, SEO, and website development to enhance clients' online presence. Significant partnerships with financial institutions and other businesses also contribute to its earnings, as these collaborations expand its client base and enhance service delivery. Furthermore, Deluxe's focus on cloud solutions and technology integration has positioned it well for recurring revenues from subscription-based models, driving consistent financial growth.

Deluxe Financial Statement Overview

Summary

Deluxe exhibits solid financial health with strong cash flow management and gross profit margins. However, the company faces challenges with high leverage and lower net profitability, which could pose risks if not managed carefully. Continued focus on improving operational efficiencies and reducing debt could enhance financial stability and shareholder value.

Income Statement

Deluxe has shown a stable revenue stream with a recent decrease in revenue growth. The Gross Profit Margin stands at 52.9% TTM, indicating healthy product margins. However, the Net Profit Margin is at 3.1% TTM, reflecting lower profitability. EBIT and EBITDA margins are moderate at 9.0% and 13.7% TTM, respectively, showing operational efficiency but also room for improvement.

Balance Sheet

The Debt-to-Equity Ratio is elevated at 0.58, suggesting significant leverage. However, the Return on Equity (ROE) is a moderate 2.5% TTM, indicating limited returns on shareholder investment. The Equity Ratio at 100% TTM suggests strong equity support, yet the overall leverage risk remains a concern.

Cash Flow

Deluxe has demonstrated strong cash flow management with a Free Cash Flow growth of 44.2% TTM, reflecting robust liquidity. The Operating Cash Flow to Net Income Ratio is 3.3, indicating effective conversion of income into cash. The Free Cash Flow to Net Income Ratio is 2.2, showcasing efficient cash utilization relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.11B	2.12B	2.19B	2.24B	2.02B	1.79B
Gross Profit	1.11B	1.13B	1.16B	1.21B	1.14B	1.06B
EBITDA	237.40M	365.32M	338.37M	386.45M	368.57M	159.77M
Net Income	67.10M	52.80M	26.12M	65.39M	62.63M	8.80M
Balance Sheet
Total Assets	2.54B	2.83B	3.08B	3.08B	3.07B	1.87B
Cash, Cash Equivalents and Short-Term Investments	38.36M	34.40M	71.96M	40.40M	41.20M	123.10M
Total Debt	1.53B	1.59B	1.67B	1.69B	1.74B	868.40M
Total Liabilities	1.90B	2.21B	2.48B	2.47B	2.50B	1.33B
Stockholders Equity	638.43M	620.92M	604.09M	604.20M	574.60M	540.80M
Cash Flow
Free Cash Flow	183.70M	99.89M	97.62M	86.90M	101.70M	155.00M
Operating Cash Flow	229.46M	194.28M	198.37M	191.50M	210.80M	217.60M
Investing Cash Flow	-70.20M	-69.84M	-43.30M	-80.30M	-1.07B	-56.10M
Financing Cash Flow	-194.95M	-267.25M	-37.68M	-48.60M	913.00M	-110.60M

Deluxe Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLX, the sentiment is Positive. The current price of 19.03 is above the 20-day moving average (MA) of 17.66, above the 50-day MA of 16.52, and above the 200-day MA of 17.57, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 44.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLX.

Deluxe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STGW	73 Outperform	$1.48B	492.79	-0.32%	―	9.56%	―
DLX	71 Outperform	$858.21M	14.89	9.20%	6.28%	-1.92%	49.63%
Sector *	65 Neutral	$2.62B	15.24	15.18%	3.49%	0.27%	26.17%
QNST	64 Neutral	$846.88M	192.98	2.04%	―	78.27%	―
TSQ	54 Neutral	$113.64M	3.43	74.55%	11.66%	-0.11%	―
CCO	51 Neutral	$601.39M	―	4.92%	―	-21.67%	81.70%
NCMI	50 Neutral	$403.89M	―	-5.50%	2.13%	13.34%	-107.92%

Deluxe Corporate Events

Deluxe Appoints Michelle T. Collins to Board

On August 20, 2025, Deluxe Corporation announced the election of Michelle T. Collins to its Board of Directors. Ms. Collins, a retired Deloitte partner with extensive experience in business transformations and financial management, will serve on the Audit and Finance Committee. Her appointment is expected to enhance Deluxe’s strategic direction and operational growth, leveraging her expertise in navigating complex business issues and technology disruptions.

Deluxe Acquires CheckMatch to Boost Payment Network

On August 6, 2025, Deluxe Corporation acquired the CheckMatch electronic check conveyance service business from JPMorgan Chase Bank. This acquisition, valued at $25 million, is set to enhance Deluxe’s Payment Network by integrating CheckMatch’s digital check delivery service, which aims to reduce costs and improve security against mail fraud. The move aligns with Deluxe’s strategy to expand its B2B payments portfolio and is expected to create the largest digital lockbox network in the market, benefiting stakeholders through increased efficiency and potential cost savings.