Deluxe (DLX) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 5.35%
• Average Volume (3M): 326.64K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.22
• Revenue Growth: -0.94%
• EPS Growth: 47.48%
• Country: US
• Employees: 4,981
• Sector: Industrials
• Sector Strength: 72
• Industry: Advertising Agencies
• EPS (TTM): 1.09
• Shares Outstanding: 45,007,664
• 10 Day Avg. Volume: 426,465
• 30 Day Avg. Volume: 326,636
• PEG Ratio: 0.19
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 9.99
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 2.07
• Enterprise Value/Ebitda: 6.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.55
• Revenue Forecast (FY): $2.12B

• Rating: 72 Outperform
• Price Target: $26.00 ▲(27.39% Upside)

Deluxe's overall stock score reflects a balance of strong technical momentum and positive earnings call outcomes, tempered by financial performance challenges and high leverage. The valuation is fair, and recent corporate events support liquidity and stability. Investors should monitor leverage and operational efficiency improvements.

Positive Factors

EBITDA Growth

Significant EBITDA growth indicates strong operational performance and efficiency, enhancing Deluxe's profitability and competitive position.

Debt Reduction

Reducing net debt improves financial stability and flexibility, allowing Deluxe to invest in growth opportunities and manage economic downturns better.

Data Segment Growth

Consistent double-digit growth in the data segment highlights Deluxe's ability to innovate and capture market demand, supporting long-term revenue expansion.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting Deluxe's ability to navigate economic challenges or invest in growth.

Inconsistent Revenue Growth

Inconsistent revenue growth suggests challenges in maintaining market share and demand, which could affect long-term financial performance and strategic planning.

Print Segment Challenges

Declines in the print segment indicate structural challenges in traditional business lines, necessitating strategic shifts to sustain overall growth.

Deluxe Business Overview & Revenue Model

Company Description

Deluxe (DLX) is a leading provider of marketing services, web development, and financial technology solutions, primarily serving small to medium-sized businesses. The company operates in several sectors, including digital marketing, payment processing, and customer communications, offering a diverse range of products such as website design, SEO services, promotional products, and check printing. Deluxe aims to empower businesses by helping them build their brand, engage with customers, and streamline their operations through innovative technology and services.

How the Company Makes Money

Deluxe generates revenue through multiple streams, primarily by offering subscription-based services, transaction fees, and one-time service fees. Key revenue streams include digital marketing solutions, where clients pay for services like SEO, social media management, and content creation. In financial technology, Deluxe earns revenue from transaction processing fees associated with payment solutions and merchant services. Additionally, the company generates income from selling printed products like checks and promotional materials. Strategic partnerships with financial institutions and other service providers enhance its service offerings and customer reach, contributing to its overall earnings.

Deluxe Financial Statement Overview

Summary

Deluxe shows a mixed financial performance. While profitability metrics like gross and net profit margins are stable, revenue growth is inconsistent, and high leverage poses financial stability risks. Positive cash flow trends are a strength, but debt management and operational efficiency need improvement.

Income Statement

Deluxe shows a mixed performance in its income statement. The TTM data indicates a gross profit margin of 52.90% and a net profit margin of 3.18%, which are relatively stable compared to previous years. However, the revenue growth rate has been inconsistent, with a notable decline in 2024. The EBIT and EBITDA margins have also shown some volatility, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.39 in the TTM period, indicating significant leverage. While the return on equity is modest at 6.04%, the equity ratio is low, suggesting potential risks in financial stability. The company needs to manage its debt levels to improve its financial health.

Cash Flow

Cash flow analysis shows positive trends, with a free cash flow growth rate of 11.08% in the TTM period. The operating cash flow to net income ratio is 0.63, indicating decent cash generation relative to net income. However, the free cash flow to net income ratio of 0.80 suggests room for improvement in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.12B	2.12B	2.19B	2.24B	2.02B	1.79B
Gross Profit	1.12B	1.13B	1.16B	1.21B	1.14B	1.06B
EBITDA	377.83M	365.32M	335.14M	351.38M	298.12M	160.74M
Net Income	82.74M	52.80M	26.12M	65.39M	62.63M	5.24M
Balance Sheet
Total Assets	2.59B	2.83B	3.08B	3.08B	3.07B	1.84B
Cash, Cash Equivalents and Short-Term Investments	25.80M	34.40M	71.96M	40.44M	41.23M	123.12M
Total Debt	1.50B	1.56B	1.67B	1.71B	1.75B	879.93M
Total Liabilities	1.92B	2.21B	2.48B	2.47B	2.50B	1.33B
Stockholders Equity	663.87M	620.75M	604.09M	603.81M	574.32M	513.25M
Cash Flow
Free Cash Flow	154.81M	99.89M	97.62M	86.90M	101.68M	155.00M
Operating Cash Flow	228.69M	194.28M	198.37M	191.50M	210.82M	217.60M
Investing Cash Flow	-94.56M	-69.84M	-43.30M	-80.30M	-1.07B	-56.10M
Financing Cash Flow	-154.51M	-267.25M	-37.68M	-48.60M	912.96M	-110.60M

Deluxe Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.41
• 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 20.41 is below the 20-day moving average (MA) of 21.43, above the 50-day MA of 20.01, and above the 200-day MA of 17.33, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 62.51 is Neutral, neither overbought nor oversold. The STOCH value of 59.91 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
CRTO	77 Outperform	$1.02B	6.60	15.37%	―	0.32%	69.78%
DLX	72 Outperform	$1.01B	12.29	12.96%	5.35%	-0.94%	47.48%
QNST	69 Neutral	$820.63M	81.56	4.55%	―	43.12%	―
STGW	65 Neutral	$1.31B	66.49	3.80%	―	6.76%	1841.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EEX	62 Neutral	$927.72M	217.13	1.21%	1.28%	11.18%	―
ADV	41 Neutral	$298.11M	-1.18	-29.47%	―	-7.12%	-7.75%

Deluxe Corporate Events

Deluxe Amends Financing Agreement to Boost Liquidity

On December 15, 2025, Deluxe Receivables LLC, a subsidiary of Deluxe Corporation, amended its Receivables Financing Agreement by increasing the facility limit to $100 million, raising the required capital amount to $17.5 million, and extending the termination date to December 14, 2028. The amendment impacts Deluxe’s operational liquidity and stability, while the fee adjustments tied to the company’s long-term credit ratings aim to reinforce financial positioning and investor confidence.