A Look At Deluxe’s (DLX) Valuation As It Shifts Toward Payments And Data Solutions

Deluxe (DLX) has completed a multi year share repurchase program, buying back 4,796,490 shares, or 10.79% of its stock for US$212.55 million, and reported higher revenue and net income for 2025.

See our latest analysis for Deluxe.

At a share price of US$27.32, Deluxe has seen strong recent momentum, with a 30 day share price return of 11.65% and a 90 day share price return of 44.93%. The 1 year total shareholder return of 62.50% contrasts with a weaker 5 year total shareholder return of a 13.74% decline, suggesting sentiment has improved as investors respond to its business mix shift, cost discipline, debt reduction, and buyback completion.

If this kind of rebound catches your eye, it could be a good moment to broaden your search and check out 22 top founder-led companies as potential next ideas.

With Deluxe now earning revenue of US$2.13b and net income of US$82.1 million, plus a completed buyback and a discount to the US$32.67 analyst price target, is the recent rally still leaving room for a buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 16.4% Undervalued

At around $27.32, the most widely followed narrative on Deluxe pegs fair value at $32.67, using a detailed set of growth, margin, and discount rate assumptions.

Continued execution on operational efficiency initiatives and automation investments are expanding operating leverage, evidenced by rising EBITDA margins (+140 bps YoY) and strong free cash flow growth (+200% YTD), indicating durable improvement in net margins and cash generation over time.

Read the complete narrative.

Curious what sits behind that fair value upgrade? The narrative leans heavily on faster earnings growth, richer margins, and a lower future P/E than many peers assume. The exact mix may surprise you.

Result: Fair Value of $32.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story could look very different if Deluxe struggles to grow digital payments fast enough to offset declining print revenue, or if fintech competitors squeeze margins harder than expected.

Find out about the key risks to this Deluxe narrative.

Next Steps

If this mix of optimism and caution leaves you on the fence, now is a good time to review the full picture for yourself, including 5 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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