Deluxe (DLX) AI Stock Analysis

• Market Cap: $889.18M
• Dividend Yield: 6.12%
• Average Volume (3M): 376.68K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.32
• Revenue Growth: -1.92%
• EPS Growth: 49.63%
• Country: US
• Employees: 4,981
• Sector: Industrials
• Sector Strength: 72
• Industry: Advertising Agencies
• EPS (TTM): 0.88
• Shares Outstanding: 44,885,246
• 10 Day Avg. Volume: 259,261
• 30 Day Avg. Volume: 376,681
• 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: 2.48
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 6.95
• 1Y Price Target: $24.00
• Price Target Upside: 22.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $21.00 ▲(7.03% 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

Cash Flow Management

Strong cash flow management enhances Deluxe's ability to invest in growth opportunities and maintain financial stability, supporting long-term operations.

Data Solutions Growth

Significant growth in the Data Solutions segment indicates robust demand and positions Deluxe well in a high-growth area, supporting future revenue expansion.

Strategic Acquisition

The acquisition of CheckMatch strengthens Deluxe's payment solutions, expanding its market reach and improving service efficiency, which supports long-term competitive positioning.

Negative Factors

Revenue Decline

A decline in revenue, particularly in the Print segment, suggests challenges in maintaining growth, potentially impacting long-term financial performance.

Print Segment Challenges

Continued challenges in the Print segment, especially in low-margin areas, may hinder overall profitability and require strategic adjustments to sustain growth.

Macroeconomic Uncertainty

Macroeconomic uncertainty poses risks to Deluxe's revenue streams, particularly in segments reliant on consumer spending, affecting long-term stability.

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 shows a stable financial profile with strong cash flow management and healthy gross profit margins. However, challenges in revenue growth and limited profitability are concerns. The company has reduced leverage, but returns on equity remain modest.

Income Statement

Deluxe's income statement reveals a mixed performance. The TTM gross profit margin is healthy at 52.9%, indicating efficient cost management. However, the net profit margin is relatively low at 3.2%, suggesting limited profitability. Revenue growth has been negative, with a decline of 0.78% in the TTM, which is a concern. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency but room for improvement.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio has improved to 0.58 in the TTM, indicating reduced leverage compared to previous years. However, the return on equity is low at 4.2%, suggesting limited returns for shareholders. The equity ratio stands at 25.2%, reflecting a balanced capital structure but highlighting potential risks if debt levels increase.

Cash Flow

Cash flow analysis indicates strong cash generation capabilities. The free cash flow growth rate is robust at 27.5% in the TTM, showing improved cash management. The operating cash flow to net income ratio is high at 5.26, indicating strong cash conversion. The free cash flow to net income ratio of 0.80 suggests efficient use of cash to support operations and investments.

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	317.79M	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: 19.62
• 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 19.62 is above the 20-day moving average (MA) of 19.43, above the 50-day MA of 17.82, and above the 200-day MA of 17.47, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 64.72 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
DLX	71 Outperform	$889.18M	14.89	9.20%	6.12%	-1.92%	49.63%
STGW	71 Outperform	$1.44B	501.80	-0.32%	―	9.56%	―
QNST	66 Neutral	$938.97M	205.74	2.04%	―	78.27%	―
Sector *	63 Neutral	$10.84B	15.52	7.40%	2.00%	2.86%	-14.57%
TSQ	55 Neutral	$115.12M	3.47	74.55%	11.34%	-0.11%	―
CCO	54 Neutral	$661.03M	―	4.92%	―	-21.67%	81.70%
NCMI	50 Neutral	$443.25M	―	-5.50%	1.90%	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.