Deluxe Corporation (DLX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+179.1%

$64.85

vs $23.23 price

Levered DCF

$43.65

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.81

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.94×	18.83×	35.75×	11.17×	21.7×	139.05×	-10.74×	11.54×
P/B	1.49×	1.61×	1.55×	1.21×	2.37×	2.39×	3.76×	1.95×
P/S	0.48×	0.47×	0.43×	0.33×	0.67×	0.68×	1.07×	0.9×
EV / EBITDA	5.95×	6.92×	7.54×	6.82×	10.31×	12.33×	-54.6×	7.15×
Gross margin	53.1%	53.1%	53.0%	53.9%	56.3%	59.2%	59.5%	60.4%
Operating margin	12.1%	9.1%	7.3%	7.6%	7.0%	2.3%	-9.4%	12.0%
Net margin	3.8%	2.5%	1.2%	2.9%	3.1%	0.3%	-11.1%	7.8%
Current ratio	1.04×	0.98×	0.93×	0.94×	0.91×	1.23×	1.16×	1.18×
Debt / equity	2.26×	2.52×	2.76×	2.83×	3.05×	1.71×	1.63×	0.99×
Interest coverage	2.12×	1.56×	1.28×	1.79×	2.56×	1.76×	-5.43×	8.85×
Dividend yield	5.4%	5.4%	5.7%	7.2%	3.8%	4.1%	2.4%	3.1%
Payout ratio	67.2%	102.6%	204.2%	80.5%	82.5%	967.7%	-23.1%	36.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.0%	8.5%	4.3%	10.8%	10.9%	1.0%	-39.2%	16.9%
Return on invested capital	7.9%	5.9%	4.5%	5.5%	3.9%	0.6%	-12.2%	8.8%
Return on assets	2.9%	1.9%	0.8%	2.1%	2.0%	0.3%	-11.5%	6.8%
Free cash flow yield	17.3%	10.0%	10.4%	11.9%	7.5%	12.7%	10.2%	15.4%
Earnings yield	8.1%	5.3%	2.8%	9.0%	4.6%	0.4%	-10.4%	8.7%
Enterprise value	$2.3B	$2.5B	$2.5B	$2.4B	$3.1B	$2B	$3B	$2.7B
Net debt / EBITDA	3.27×	4.19×	4.75×	4.74×	5.75×	4.71×	-15.56×	2.3×
Cash conversion cycle (days)	-9	-13	-4	3	28	-2	3	9