Deluxe Corp. (DLX)
NYSE:DLX
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Deluxe
(NYSE:DLX)
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Rating:68Neutral
Price Target:
$30.00
▲(27.39% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Deluxe (DLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend Yield5.41%
Average Volume (3M)373.18K
Price to Earnings (P/E)11.9
Beta (1Y)1.19
Revenue Growth-0.94%
EPS Growth47.48%
CountryUS
Employees4,981
SectorIndustrials
Sector Strength72
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.96
Shares Outstanding45,081,497
10 Day Avg. Volume338,333
30 Day Avg. Volume373,175
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.49
Price to Sales (P/S)0.48
P/FCF Ratio5.80
Enterprise Value/Market Cap1.98
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit2.22
Enterprise Value/Ebitda6.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.9
Revenue Forecast (FY)$2.14B
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,...
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, so...
Deluxe Key Performance Indicators (KPIs)
Deluxe Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial progress: solid adjusted EBITDA and EPS growth, substantial free cash flow generation, successful deleveraging, and a clear strategic shift toward higher-growth payments and data, led by a booming data segment (+31% revenue). However, topline growth remained modest overall, the legacy print business continued to decline (-5.7% revenue) with non-core promotional products underperforming, and the company faces tougher comparables in data later in 2026. On balance, the positive momentum in profitability, cash generation, margin expansion, and mix shift toward payments and data outweighs the remaining revenue challenges and sector headwinds.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Full-year comparable adjusted EBITDA was $431.5M, up $25M or 6.2% year-over-year, with adjusted EBITDA margin expanding to 20.2% (+90 basis points vs. 2024).
Negative Updates
Overall Revenue Growth Modest
Total full-year revenue was $2,133M, up only 0.5% reported and 1.1% on a comparable adjusted basis versus 2024 — topline growth remains modest despite strong margin and cash flow performance.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Full-year comparable adjusted EBITDA was $431.5M, up $25M or 6.2% year-over-year, with adjusted EBITDA margin expanding to 20.2% (+90 basis points vs. 2024).
Read all positive updates
Company Guidance
Management guided 2026 revenue of $2,110M–$2,175M (≈‑1% to +2% comparable adjusted), adjusted EBITDA of $445M–$470M, adjusted EPS of $3.90–$4.30 (≈6%–17% comparable adjusted growth), and free cash flow of ≈$200M (≈14% growth vs. 2025). Segment assumptions: Merchant mid‑single‑digit revenue growth with margins targeting the mid‑20s, B2B low‑single‑digit growth with low‑to‑mid‑20s margins, Data mid‑ to high‑single‑digit growth with low‑to‑mid‑20s margins, and Print a low‑to‑mid‑single‑digit revenue decline with low‑30s margins. Modeling assumptions include interest expense ≈$110M, an adjusted tax rate of 26%, depreciation & amortization ≈$135M (acquisition amortization ≈$45M), an average share count ≈46.5M, and CapEx of $90M–$100M; management expects to reach sub‑3.0x net debt/adjusted EBITDA in H1 2026.Deluxe Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
45
Neutral
Cash Flow
70
Positive
| 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
Positive
23.55
Price Trends
27.29
Positive
24.56
Positive
21.19
Positive
Market Momentum
0.32
Negative
57.84
Neutral
62.07
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 27.34, below the 50-day MA of 27.29, and above the 200-day MA of 21.19, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 62.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLX.
Deluxe Risk Analysis
Deluxe disclosed 23 risk factors in its most recent earnings report. Deluxe reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Deluxe Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.27B | 11.93 | 13.07% | 5.41% | -0.94% | 47.48% | |
68 Neutral | $682.79M | 4.07 | 24.45% | ― | 43.12% | ― | |
67 Neutral | $911.53M | 7.45 | 13.04% | ― | 0.32% | 69.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $1.59B | 37.07 | 4.42% | ― | 6.76% | 1841.46% | |
58 Neutral | $880.69M | -7.32 | -8.24% | 1.29% | 11.18% | ― | |
50 Neutral | $348.21M | -1.25 | -34.48% | ― | -7.12% | -7.75% |
* Industrials Sector Average
DLX
Deluxe
28.11
14.26
103.02%
STGW
Stagwell
6.27
0.99
18.75%
QNST
Quinstreet
11.98
-3.30
-21.60%
CRTO
Criteo SA
17.82
-10.11
-36.20%
EEX
Emerald Expositions Events
4.45
0.95
27.07%
ADV
Advantage Solutions
26.58
-3.17
-10.66%
Deluxe Corporate Events
Business Operations and StrategyM&A Transactions
Deluxe Divests Safeguard Assets in Strategic Sale Agreement
Positive
Feb 10, 2026
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 ba...
Business Operations and StrategyPrivate Placements and Financing
Deluxe Amends Financing Agreement to Boost Liquidity
Positive
Dec 17, 2025
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.