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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#217
Positioning
Market Dominance
Manufacturing
Printing And Publishing
$869M
Barry C. McCarthy
Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions. It operates through four segments: Payments, Cloud Solutions, Promotional Solutions, and Checks. The company was formerly known as Deluxe Check Printers, Incorporated.
Headcount
5.9K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DLX ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DLX DELUXE CORP | 66 | 67 | 84 | 70 | 15.5x | 5.4x | 11.6% | 2.8% | 53.3% | 10.6% | 3.7% | 0.4% | 6.2% | 321.0x | $869M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
DELUXE CORP (DLX) receives a "Buy" rating with a composite score of 66.4/100. It ranks #217 out of 7,333 stocks in our coverage universe and carries a 4-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
St. Paul, Minnesota
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Top-rated overall — multiple factors aligned for strong entry
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DLX.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 67 | 78 | -11DRAG |
| MOMENTUM | 70 | 74 | -4NEUTRAL |
| VALUATION | 84 | 89 | -5NEUTRAL |
| INVESTMENT | 42 | 78 | -36DRAG |
| STABILITY | 66 | 66 | 0NEUTRAL |
| SHORT INT | 52 | 58 | -6DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 10.9% vs WACC 7.5% (spread +3.4%)
GM 53% vs sector 44%, OM 11% vs sector 3%
Capital turnover 1.50x
Rev growth 0%, 10yr history
Interest coverage 1.9x, Net debt/EBITDA 6.1x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate DELUXE CORP (DLX) as a Buy with a composite score of 66.4/100 at a current price of $26.88. The stock scores above average across the majority of our quantitative factors and ranks #217, reflecting a favorable risk-reward profile.
DELUXE CORP holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 66.4/100 places it at rank #217 in our full universe.
The near-term outlook is constructive, with revenue growing at 0% and momentum in the 70th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
High
Poor
Undervalued
Gross margins of 53% signal strong pricing power.
Value factor score of 84 suggests attractive pricing.
Positive momentum indicates institutional accumulation.
Leverage of 321% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
DELUXE CORP represents a buy based on multi-factor quantitative performance.
DELUXE CORP receives a Buy rating with a composite score of 66.4/100 and 4 out of 5 stars, ranking #217 of 7,333 stocks in our universe. DLX displays a favorable combination of factors that positions it above the majority of the market. While not without risk, the quantitative profile supports a constructive outlook.
DLX earns a quality score of 67/100, indicating above-average business quality. The company reports a return on equity of 11.6% (sector avg: -1.9%), gross margins of 53.3% (sector avg: 44.1%), net margins of 3.7% (sector avg: 1.0%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
DLX carries a solid value score of 84/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 15.50x, an EV/EBITDA of 5.43x, a P/B ratio of 1.80x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 42/100, DLX exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 0.4% vs. a sector average of 6.7% and a return on assets of 2.8% (sector: 0.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
DLX shows strong momentum characteristics with a score of 70/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 0.4% year-over-year, while a beta of 0.89 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
DLX shows good financial stability with a score of 66/100. Key stability metrics include a beta of 0.89 and a debt-to-equity ratio of 321.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 52/100 for DLX suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 321.00x), small-cap liquidity risk. With a $869M market cap (small-cap), DELUXE CORP may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
DELUXE CORP offers an attractive dividend yield of 6.2%, placing it among the higher-yielding stocks in its peer group. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
DELUXE CORP is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #217 of 7,333 overall (97th percentile). Key comparisons include ROE of 11.6% exceeding the -1.9% sector median and operating margins of 10.6% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
Quant Factor Profile
Key factor gap
Value (84) vs Investment (42) — closing this gap could shift the rating.
EV/EBITDA 53% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 713% BELOW SECTOR MEDIAN
Gross Margin 21% ABOVE SECTOR MEDIAN (FAVORABLE)
Proforma, a family-owned distributor, has agreed to acquire Safeguard from Deluxe Corp. for approximately $25 million. This acquisition is expected to add nearly $180 million in annual sales to Proforma, making it one of the largest distributor acquisitions in recent years and solidifying its position as the industry's fourth-largest distributor. The deal, slated to close in Q1 2026, includes integrating nearly 150 Safeguard distributorships into Proforma's network, with a focus on seamless transition and continued growth for the newly welcomed members.
Deluxe Corp (NYSE:DLX) reported strong fourth-quarter 2025 financial results, surpassing analyst expectations for both earnings per share and revenue. This beat led to a significant 10.5% surge in the company's stock during after-hours trading, indicating investor optimism. Analysts project continued growth for Deluxe into 2026, with revenue and EPS expected to increase.
Deluxe (DLX) has entered into an Asset Purchase Agreement to sell specified assets of its Safeguard and Safeguard Business Systems operations to PFG-SG Operating Group. The deal is valued at approximately $25 million, with $12 million paid at closing and the remaining balance in three equal annual installments. The transaction is expected to close in the first quarter of 2026 and includes a transition services agreement and a three-year non-compete clause.
Deluxe Corp.'s (DLX) recent earnings call highlighted significant profitability gains and strong cash generation, despite modest revenue growth and ongoing challenges in its legacy print business. The company is strategically shifting towards higher-growth payments and data solutions, which now account for 47% of total revenue. While overall revenue growth remained subdued due to print segment declines, management emphasized improved operational efficiencies, margin expansion, and a clear path to deleveraging.
Deluxe Corp's stock has been slipping, raising questions about whether it's an undervalued opportunity or a prolonged value trap. Despite solid cash flow and a generous dividend, concerns regarding leverage, shrinking legacy revenue, and a slow digital transition are weighing on investor sentiment. The company's future hinges on accelerating digital revenue growth, reducing leverage, and demonstrating operating discipline in a challenging small and midsize business market.
Above 50MA
37.18%
Net New Highs
+51081