A Fresh Look at Deluxe (DLX) Valuation After Q3 Beat and Credit Rating Upgrade

Third quarter beat and credit upgrade put Deluxe in a stronger spot

Deluxe (DLX) just delivered a stronger than expected third quarter and picked up a credit upgrade to B+ with a stable outlook, a one two that signals improving balance sheet strength.

See our latest analysis for Deluxe.

The upbeat quarter and credit upgrade seem to be feeding into a slow but positive shift in sentiment, with Deluxe’s share price returning 10.29% over the last month and a solid 58.60% three year total shareholder return hinting that momentum is rebuilding, not fading.

If Deluxe’s improving story has your attention, it could be a good moment to scan the market for other opportunities using our fast growing stocks with high insider ownership.

Yet with shares still trading below analyst targets and Deluxe’s intrinsic value screens suggesting upside, investors now face a key question: is this a fresh buying opportunity or is the market already discounting the next leg of growth?

Most Popular Narrative Narrative: 22.2% Undervalued

With Deluxe closing at 22.29 dollars versus a narrative fair value near 28.67 dollars, the valuation case leans on a very specific earnings trajectory.

Analysts expect earnings to reach 143.9 million dollars and earnings per share of 2.67 dollars by about September 2028, up from 57.9 million dollars today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

Want to see what kind of margin rebuild and future earnings multiple are baked into that price tag? The narrative hinges on an unusual mix of shrinking revenues, rising profitability, and a richer valuation down the line. Curious how those moving parts still add up to upside from here?

Result: Fair Value of $28.67 (UNDERVALUED)

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

However, the narrative could unravel if print declines accelerate or Deluxe struggles to scale higher margin digital segments quickly enough to offset legacy erosion.

Find out about the key risks to this Deluxe narrative.

Build Your Own Deluxe Narrative

If this storyline does not quite match your view or you prefer building your own thesis from the raw numbers, you can craft a personalized narrative in just a few minutes: Do it your way.

A great starting point for your Deluxe research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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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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