Deluxe Corporation Common Stock (DLX)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business that earns good returns on capital and can be bought with a margin of safety. Deluxe is a mixed case. It sells merchant services, B2B payments, data solutions and print. In fiscal year 2025, the year ended 2025-12-31, it reported revenue of $2.1B and net income of $82.1M, or diluted EPS of $1.80. That is up from fiscal year 2024 net income of $52.8M and diluted EPS of $1.18, but revenue has been roughly flat. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $499.3M, net income $19.1M and diluted EPS $0.41, weaker than fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $521.3M, net income $22.4M and diluted EPS $0.50. The recent trend is not robust. The attraction is cash generation and price. Trailing twelve-month free cash flow is $209.1M, a 19.7% FCF yield on a $1.1B market cap. At the $23.10 close on 2026-10-13, FairStock calculations show P/E 10.60, P/B 1.50, EV/EBITDA 6.21, Graham Number $27.53, margin of safety 16.09%, and dividend yield 5.15%. FairStock classifies it as a Stalwart, with profit growth of 73.4% a year over five years and revenue growth of 3.6%. But debt is heavy: D/E 2.10, Altman Z-Score 0.94, ROCE 6.80%, and Piotroski F-Score 5/9. That leverage limits the margin of safety. I see a cheap-ish, cash-rich transition story with a 5% dividend, but not a wide-moat compounder.

In plain English: Deluxe sells payment, data and printing services to small businesses and banks. It earns a profit and produces a lot of spare cash, but sales are barely growing and it carries a lot of debt. At $23.10, the stock looks somewhat cheap compared with its profits and cash, though the weak growth and debt keep the business from looking clearly strong.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer