Deluxe Corporation (DLX) Stock Analysis
Verdict: HOLD
High-yield transformation into payments via Celero is offset by $1.55B+ debt leverage in a secularly declining check market.
Investment score: 63/100
Analysis as of
Is Deluxe Corporation stock worth reviewing? The TradeMates thesis
The TradeMates model assigns Deluxe a HOLD score of 63, balancing an attractive 6.64% dividend yield and low valuation against elevated debt leverage following its $625 million Celero Commerce acquisition.
7-factor investment score
- Valuation: 78/100 (weight 20%)
- Financial Health: 52/100 (weight 15%)
- Technical Momentum: 42/100 (weight 15%)
- Earnings Quality: 82/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Deluxe Corporation opportunities and risks
What speaks for DLX
- Celero Commerce acquisition adds $200M+ high-margin recurring payments revenue
What speaks against DLX
- Elevated leverage of 3.59x Net Debt/EBITDA limits financial flexibility post-Celero acquisition
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DLX | 9.9x | 0.5x | 6.2x | 52.5% | 4.8% | 23.0% |
| BRC | 19.4x | 2.4x | 12.2x | 51.7% | 12.4% | 4.9% |
| EBF | 13.7x | 1.3x | 6.8x | 30.6% | 9.8% | 11.1% |
| QUAD | 13.5x | 0.1x | 5.4x | 31.9% | 0.9% | 9.8% |
| DSS | n/a | 0.3x | n/a | -20.8% | -149.8% | -228.0% |
| LMTI | n/a | 0.3x | n/a | 22.6% | -4.6% | 4.9% |
| Peer median | 13.5x | 0.3x | 5.4x | 30.6% | 0.9% | 4.9% |
Frequently asked questions about Deluxe Corporation (DLX)
Is DLX stock a good investment?
The TradeMates model rates Deluxe Corporation as HOLD with an investment score of 63/100. The TradeMates model assigns Deluxe a HOLD score of 63, balancing an attractive 6.64% dividend yield and low valuation against elevated debt leverage following its $625 million Celero Commerce acquisition. This is algorithmic model output, not personal investment advice.
Is DLX stock a buy?
The TradeMates model verdict for DLX is HOLD with an investment score of 63/100. Treat this as a model signal to review, not a personal buy recommendation.