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Deluxe Corporation

DLX
57
Advertising Agencies · Communication Services
Price
$26.05
-0.51 (-1.92%)
Market Cap
$1.19B
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+6.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 42.8M (2021) → 45.5M (2025)

Deluxe Corporation is a business services company that helps small businesses and financial institutions run their operations. Its core products include printed checks, marketing services, website tools, and payment processing technology. Most customers are banks, credit unions, and small businesses across the United States, and Deluxe is one of the largest check printers in the country.

Deluxe makes money by selling these products and services directly to businesses, earning revenue through product sales, software subscriptions, and service fees. The company operates almost entirely in the United States and generates roughly $2 billion in annual revenue. Its long-standing relationships with banks give it a stable customer base, but the slow and steady decline in check usage is a real long-term risk, which is why Deluxe has been investing in digital payments and data-driven marketing services to offset that pressure.

Winston Score History

Politician Trades

1 trades / 12mo

0 Congressional buys and 1 sell on DLX in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+154.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

3.3%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$27M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Deluxe Corporation is growing revenue at 0% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
52.0%
Healthy — 52.0% gross margin
Operating Margin
13.1%
Healthy — 13.1% operating margin
ROCE
3.4%
Weak — 3.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+0.5%
Nearly flat sales (0.5% YoY)
EPS YoY
+61.0%
Earnings growing fast (61.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
263%
Turns 263% of profit into real cash
FCF Margin
8.4%
Modest free cash flow (8.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
2.01
Heavy debt load (2.01)
Interest Cover
2.30x
Tight — interest eats into profit (2.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
11.1x
Attractive valuation — P/E 11.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+4.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (11.1 → 6.4)

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Dividends

Dividend Yield
4.94%
Healthy income — 4.94% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+0.0%
Dividend flat

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