DELUXE CORP

DLXdata completeness 100%18 fiscal years on file
The thesis, from the filings

DELUXE CORP earns about 6% on invested capital, below its ~9% cost of capital, but has diluted owners by 6% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $8.4 and $14.26 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$2.02B1$2.24B2$2.19B3$2.12B3$2.13B3
Net income$62.6M4$65.4M5$26.1M6$52.8M6$82.1M6
Operating cash flow$210.8M7$191.5M8$198.4M9$194.3M9$270.6M9
Capital expenditure$100.7M10$94.3M10$95.3M10
Free cash flow (derived)$97.7M9$100M9$175.3M9
Total debt$1.68B11$1.64B12$1.59B13$1.5B14$1.43B14
Cash & equivalents$41.2M15$40.4M16$72M17$34.4M17$36.9M17
Diluted shares42.8M43.3M43.8M44.7M45.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$149.6
your share of equity
Profit it earned you last year
$18.04
Free cash flow it threw off
$38.53
Debt you’d be carrying
$314.15

10 shares is a claim on $149.6 of net worth that earned you $18.04 and generated $38.53 of cash last year, against $314.15 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
6% avg · 5y
FY21 5%FY22 6%FY23 5%FY24 7%FY25 8%

It earned about 6% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+6% shares · 5y

Share count is up 6% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 15% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $8.4 and $14.26 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$11.7
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$100M
DCF · Growth Exit 5Y
$8.4
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$100M
Earnings Power Value
$14.26
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$62.6M
  • growthAssumed0.0%
Graham Number
$24.61
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $8.4
The three cases
Bear0.0%$0.8
Base5.0%$8.4
Bull10.0%$17.49

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000027996-24-000065 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000027996-25-000051 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0000027996-26-000037 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000027996-24-000065 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000027996-25-000051 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000027996-26-000037 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000027996-24-000065 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000027996-25-000051 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000027996-26-000037 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0000027996-26-000037 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2021-12-31 · accession 0000027996-23-000060 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2022-12-31 · accession 0000027996-24-000065 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2023-12-31 · accession 0000027996-25-000051 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-12-31 · accession 0000027996-26-000037 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-12-31 · accession 0000027996-24-000065 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0000027996-25-000051 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0000027996-26-000037 (CashAndCashEquivalentsAtCarryingValue)