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Deluxe
(NYSE:DLX)
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Rating:70Outperform
Price Target:
$29.00
▲(8.45% Upside)
Action:Upgraded
Date:08/06/26
DLX scores well on improving profitability and strong free cash flow generation, supported by upbeat earnings guidance and a shareholder-friendly valuation (low P/E and high dividend yield). The score is tempered by limited top-line growth and ongoing legacy Print declines, plus moderate balance-sheet risk and execution risk from the Celero acquisition.
Positive Factors
Free cash flow growth
Sustained free cash flow (~$257M TTM) strengthens Deluxe's ability to service debt, fund organic investments and M&A, maintain the dividend, and absorb integration costs. Reliable cash generation supports durable strategic flexibility even if top-line growth remains modest.
Negative Factors
Declining Print revenues
Ongoing declines in Print represent a persistent structural headwind: even with margin discipline, shrinking volume erodes absolute earnings and forces reliance on newer segments to replace lost cash flow. The legacy decline constrains top-line and requires sustained growth elsewhere to offset it.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow growth
Sustained free cash flow (~$257M TTM) strengthens Deluxe's ability to service debt, fund organic investments and M&A, maintain the dividend, and absorb integration costs. Reliable cash generation supports durable strategic flexibility even if top-line growth remains modest.
Read all positive factors
Deluxe Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Shows each business unit’s operating profitability after removing one-time items, highlighting which lines actually generate cash and margins. For Deluxe, the split reveals whether higher-margin, recurring businesses (like digital services and payments) are driving profits versus lower-margin legacy print and check products. Tracking segment EBITDA trends helps you judge if growth is profitable, how well the company covers debt and reinvestment needs, and where execution or margin risk is concentrated.
Shows each business unit’s operating profitability after removing one-time items, highlighting which lines actually generate cash and margins. For Deluxe, the split reveals whether higher-margin, recurring businesses (like digital services and payments) are driving profits versus lower-margin legacy print and check products. Tracking segment EBITDA trends helps you judge if growth is profitable, how well the company covers debt and reinvestment needs, and where execution or margin risk is concentrated.
Data provided by:
The Fly
The FlyDeluxe (DLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend Yield4.94%
Average Volume (3M)411.62K
Price to Earnings (P/E)10.7
Beta (1Y)1.08
Revenue Growth0.30%
EPS Growth71.14%
CountryUS
Employees4,571
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.26
Shares Outstanding45,856,290
10 Day Avg. Volume320,283
30 Day Avg. Volume411,618
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.77
Revenue Forecast (FY)$2.02B
Deluxe Business Overview & Revenue Model
Company Description
Deluxe Corporation offers a wide array of technology-driven services tailored for large enterprises, small businesses, and financial institutions across a global footprint that includes the United States, Canada, Australia, South America, and Euro...
How the Company Makes Money
Deluxe makes money primarily by selling services and products that help businesses and financial institutions run operations, accept payments, and acquire/retain customers. Key revenue streams include: (1) Payments and related services: Deluxe gen...
Deluxe Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized multiple notable operational and financial wins: strong adjusted EBITDA and EPS expansion, robust growth in Data and Merchant Services, disciplined SG&A reductions, meaningful free cash flow generation, strategic partnerships, AI-driven efficiency gains and reaching the 3x net leverage target ahead of schedule. These strengths offset continuing declines in the Print segment (revenue down ~5.9%) and modest overall revenue growth (0.3% reported, 2.7% comparable). Management maintained full-year free cash flow guidance and provided updated ranges that reflect the Safeguard divestiture while forecasting moderate top-line growth. On balance, the company presented a clear transformation story with expanding profitability and balance sheet progress despite legacy print headwinds and moderation risk in data growth.Positive Updates
Strong Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $117.9M, up 19.7% on a comparable adjusted basis; adjusted EBITDA margin expanded to 21.9%, up 310 basis points year-over-year.
Negative Updates
Print Revenue Decline
Print segment revenue of $262.2M declined 5.9% year-over-year on a comparable adjusted basis (legacy Check revenues down 4.4%; the rest of the print segment down 8.4%), driving continued headwinds in the legacy print business.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $117.9M, up 19.7% on a comparable adjusted basis; adjusted EBITDA margin expanded to 21.9%, up 310 basis points year-over-year.
Read all positive updates
Company Guidance
Management updated full‑year 2026 guidance to revenue of $1.985B–$2.05B (≈ −1% to +2% comparable adjusted growth), adjusted EBITDA of $430M–$455M (≈ +4% to +10% comparable adjusted growth), adjusted EPS of $3.60–$4.00 (≈ +9% to +21% comparable adjusted growth) and unchanged free cash flow of ~ $200M (≈ +14% vs. 2025), with the ranges revised to reflect the March 1 Safeguard divestiture; guidance assumptions include interest expense of ≈ $110M, an adjusted tax rate of 26%, depreciation & amortization of ≈ $135M (including ~$40M of acquisition amortization), an average share count of ≈ 46.5M, and capital expenditures of $90M–$100M, and remains subject to prevailing macroeconomic conditions.Deluxe Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
52
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.11B | 2.13B | 2.12B | 2.19B | 2.24B | 2.02B |
| Gross Profit | 1.11B | 1.13B | 1.13B | 1.16B | 1.21B | 1.14B |
| EBITDA | 397.59M | 379.00M | 365.32M | 335.14M | 351.38M | 298.12M |
| Net Income | 100.63M | 82.10M | 52.80M | 26.12M | 65.39M | 62.63M |
Balance Sheet | ||||||
| Total Assets | 2.56B | 2.86B | 2.83B | 3.08B | 3.08B | 3.07B |
| Cash, Cash Equivalents and Short-Term Investments | 34.90M | 310.50M | 34.40M | 71.96M | 40.44M | 41.23M |
| Total Debt | 1.46B | 1.55B | 1.56B | 1.67B | 1.71B | 1.75B |
| Total Liabilities | 1.85B | 2.18B | 2.21B | 2.48B | 2.47B | 2.50B |
| Stockholders Equity | 707.50M | 683.80M | 620.75M | 604.09M | 603.81M | 574.32M |
Cash Flow | ||||||
| Free Cash Flow | 236.39M | 175.30M | 99.89M | 97.62M | 86.90M | 101.68M |
| Operating Cash Flow | 355.83M | 270.60M | 194.28M | 198.37M | 191.50M | 210.82M |
| Investing Cash Flow | -77.53M | -131.70M | -69.84M | -43.30M | -80.30M | -1.07B |
| Financing Cash Flow | -514.84M | -136.80M | -267.25M | -37.68M | -48.60M | 912.96M |
Deluxe Technical Analysis
Negative
26.74
Price Trends
24.65
Negative
25.88
Negative
24.69
Negative
Market Momentum
-0.28
Positive
42.78
Neutral
13.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLX, the sentiment is Negative. The current price of 26.74 is above the 20-day moving average (MA) of 25.63, above the 50-day MA of 24.65, and above the 200-day MA of 24.69, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 13.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.18B | 14.22 | 27.66% | ― | 18.29% | 1634.10% | |
70 Outperform | $1.10B | 10.74 | 14.63% | 4.49% | 0.30% | 71.14% | |
70 Outperform | $930.95M | 8.82 | 9.20% | ― | -4.24% | -20.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.23B | 134.26 | 2.16% | ― | 6.17% | 351.09% | |
55 Neutral | $420.31M | -1.47 | -51.48% | ― | 2.24% | 18.11% |
* Industrials Sector Average
DLX
Deluxe
24.27
5.64
30.26%
STGW
Stagwell
8.70
2.97
51.83%
QNST
Quinstreet
20.18
5.31
35.68%
CRTO
Criteo SA
17.82
-5.55
-23.75%
ADV
Advantage Solutions
31.34
-13.16
-29.57%
Deluxe Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Deluxe Refinances Debt and Completes Celero Commerce Acquisition
Positive
Jul 31, 2026
On July 31, 2026, Deluxe entered into a Second Amended and Restated Credit Agreement that refinanced its debt structure, establishing $400 million in senior secured first-lien revolving credit capacity and an $800 million senior secured first-lien...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Deluxe to Acquire Celero Commerce in Cash Deal
Positive
Jun 18, 2026
On June 17, 2026, Deluxe signed an equity purchase and merger agreement to acquire Celero Commerce in an all-cash deal valued at approximately $625 million, plus transaction expenses and adjustments, to be financed through an incremental term loan...
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.