Deluxe (DLX) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 5.41%
• Average Volume (3M): 555.81K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.25
• Revenue Growth: -0.94%
• EPS Growth: 47.48%
• Country: US
• Employees: 4,981
• Sector: Industrials
• Sector Strength: 72
• Industry: Advertising Agencies
• EPS (TTM): 0.96
• Shares Outstanding: 45,081,497
• 10 Day Avg. Volume: 427,112
• 30 Day Avg. Volume: 555,814
• PEG Ratio: 0.21
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 5.80
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 6.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $30.00 ▲(27.39% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by improving fundamentals and strong cash flow (supporting deleveraging) but held back by high leverage and uneven/modest revenue growth. Technicals add support with a clear uptrend and positive momentum, while valuation is reasonably attractive with a moderate P/E and high dividend yield. Guidance remains constructive for earnings and free cash flow, though topline growth expectations and print decline temper upside.

Positive Factors

Mix shift to payments & data

A sustained shift toward payments and data increases exposure to higher-growth, higher-margin, and more recurring revenue streams. This structural mix change reduces reliance on legacy print, improving revenue durability, margin carry, and strategic optionality over the next several quarters.

Strong free cash flow generation

Material FCF improvement strengthens the company’s ability to deleverage, fund capex and product investment, and sustain shareholder returns. Reliable cash conversion enhances financial flexibility and lowers refinancing risk, supporting strategic execution over multiple quarters.

Margin expansion and SG&A efficiency

Consistent margin expansion and meaningful SG&A reductions reflect durable operational improvements and better cost discipline. Higher operating leverage makes earnings less sensitive to modest revenue trends, improving profitability resilience during industry headwinds.

Negative Factors

High leverage remains elevated

Elevated leverage constrains strategic flexibility, increases interest expense sensitivity, and limits ability to pursue M&A or absorb shocks. Although deleveraging is underway, maintaining higher debt metrics raises refinancing and covenant risk over the medium term.

Modest and inconsistent revenue growth

Persistent low single-digit topline growth reduces operating leverage benefits and forces reliance on margin gains for EPS growth. Inconsistent revenue trends limit long-term visibility into scale economies and make sustained investment returns more dependent on execution.

Secular decline in legacy print business

Ongoing structural decline in print revenue erodes a large portion of the business and forces growth to come from newer segments. Even with healthy print margins, secular contraction pressures aggregate revenue and increases the burden on payments and data to replace legacy volumes.

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 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

Improving operating performance and strong recent cash generation (2025 free cash flow ~$175M) support debt service and profitability recovery, but the balance sheet remains the key constraint with elevated leverage (debt-heavy structure; net debt/adjusted EBITDA still ~3.2x). Revenue has also been uneven, with a sharp 2025 rebound following prior declines.

Income Statement

Revenue has been relatively stable over the last several years, with declines in 2023–2024 followed by a sharp rebound in 2025 (annual revenue growth ~69%). Profitability has improved meaningfully into 2025, with operating margin rising (to ~11.5%) and net margin improving (to ~4.0%) versus very low levels in 2023 (~1.2%). Offsetting these positives, net margins remain modest for the period overall and the revenue trajectory has been uneven, suggesting sensitivity to demand cycles and/or pricing/volume variability.

Balance Sheet

Leverage is the key constraint: debt-to-equity remains elevated (roughly ~2.1x in 2025 and higher in prior years), which can limit flexibility and increase earnings sensitivity to financing costs. Equity has improved versus 2023–2024, and return on equity has strengthened in 2025 (~12.5%), reflecting better profitability. Still, the balance sheet profile is best characterized as debt-heavy, with improved returns but ongoing leverage risk.

Cash Flow

Cash generation is a relative strength. Operating cash flow and free cash flow improved materially in 2025 (operating cash flow ~$271M; free cash flow ~$175M) versus 2024, and free cash flow has generally remained positive across the period. Cash conversion improved in 2025 with free cash flow roughly matching net income, supporting debt service capacity. The main weakness is volatility: free cash flow growth swung sharply year-to-year (including declines in 2021–2022), indicating periodic pressure from working capital and/or investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.13B	2.12B	2.19B	2.24B	2.02B
Gross Profit	1.13B	1.13B	1.16B	1.21B	1.14B
EBITDA	379.00M	365.32M	335.14M	351.38M	298.12M
Net Income	85.20M	52.80M	26.12M	65.39M	62.63M
Balance Sheet
Total Assets	2.86B	2.83B	3.08B	3.08B	3.07B
Cash, Cash Equivalents and Short-Term Investments	310.50M	34.40M	71.96M	40.44M	41.23M
Total Debt	1.55B	1.56B	1.67B	1.71B	1.75B
Total Liabilities	2.18B	2.21B	2.48B	2.47B	2.50B
Stockholders Equity	683.80M	620.75M	604.09M	603.81M	574.32M
Cash Flow
Free Cash Flow	175.30M	99.89M	97.62M	86.90M	101.68M
Operating Cash Flow	270.60M	194.28M	198.37M	191.50M	210.82M
Investing Cash Flow	-131.70M	-69.84M	-43.30M	-80.30M	-1.07B
Financing Cash Flow	-136.80M	-267.25M	-37.68M	-48.60M	912.96M

Deluxe Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 23.55 is below the 20-day moving average (MA) of 26.64, below the 50-day MA of 24.34, and above the 200-day MA of 19.09, indicating a bullish trend. The MACD of 0.77 indicates Positive momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 63.18 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	69 Neutral	$896.18M	6.60	13.16%	―	0.32%	69.78%
DLX	68 Neutral	$1.21B	14.69	12.62%	5.41%	-0.94%	47.48%
QNST	68 Neutral	$628.64M	10.26	4.55%	―	43.12%	―
STGW	65 Neutral	$1.14B	58.80	3.80%	―	6.76%	1841.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EEX	62 Neutral	$840.68M	197.22	1.21%	1.29%	11.18%	―
ADV	42 Neutral	$164.25M	-0.66	-29.47%	―	-7.12%	-7.75%

Deluxe Corporate Events

Deluxe Divests Safeguard Assets in Strategic Sale Agreement

On February 10, 2026, Deluxe Corporation agreed to sell specified assets related to its Safeguard and Safeguard Business Systems operations to PFG-SG Operating Group LLC for approximately $25 million, with $12 million payable at closing and the balance in three annual installments. The deal, expected to close in the first quarter of 2026 subject to customary conditions, includes assumption of certain liabilities, transition services, non-compete and non-solicitation covenants for three years, and mutual indemnification provisions.

The transaction reflects a strategic reallocation of Deluxe’s asset base around its Safeguard-branded operations while shifting ongoing obligations to the buyer under structured payment terms. The agreement also provides for a parent guarantee of the purchaser’s financial obligations and allows either party to terminate the deal if closing conditions are not met by April 30, 2026, unless that failure is due to the terminating party’s own nonperformance.

The most recent analyst rating on (DLX) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Deluxe stock, see the DLX Stock Forecast page.

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.

The most recent analyst rating on (DLX) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Deluxe stock, see the DLX Stock Forecast page.