DeluxeDLX +3.75%69 Gross Margin % is 51.92% as of Mar. 2026, which is 10% below its 10-year median of 57.73. GuruFocus rates DLX with a GF Score™ of 69/100 and a GF Value™ of $18.38 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 511 Conglomerates companies, Deluxe ranks better than 88.26% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Deluxe's Gross Profit for the
three
months ended in Mar. 2026 was $279 Mil. Deluxe's Revenue for the
three
months ended in Mar. 2026 was $538 Mil. Therefore, Deluxe's Gross Margin % for the quarter that ended in Mar. 2026 was 51.92%.
Warning Sign:
Deluxe Corp gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for Deluxe's Gross Margin % or its related term are showing as below:
DLX'
s Gross Margin % Range Over the Past 10 Years
Min: 52.89 Med: 57.73 Max: 63.88
Current: 52.89
During the past 13 years, the highestGross Margin % of Deluxe was 63.88%. The lowest was 52.89%. And the median was 57.73%.
DLX's Gross Margin % is ranked better than 88.26% of 511
companies
in the Conglomerates industry
Industry Median: 25.85
vs DLX: 52.89
Deluxe had a gross margin of 51.92% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Deluxe was -2.10% per year.
Deluxe (NYSE:DLX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Deluxe had a gross margin of 51.92% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Deluxe Gross Margin % Related Terms
Deluxe Gross Margin % Historical Data
* Premium members only.
The historical data trend for Deluxe's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Conglomerates subindustry, Deluxe's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Deluxe Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Deluxe's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Deluxe's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Deluxe (DLX) has a Gross Margin % of 51.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Deluxe and its competitors. This is 10% below median its historical median of 57.73. Over the past decade, Deluxe's Gross Margin % has ranged from 52.89 to 63.88. According to the industry distribution chart, Deluxe ranks #60 out of 511 companies in the Conglomerates industry, placing it in the top 11.7%.
Is Deluxe's Gross Margin % too high?
Deluxe's current Gross Margin % of 51.92% is 10% below median its 10-year median of 57.73. Over the past 10 years, this metric has ranged from a low of 52.89 to a high of 63.88. The Conglomerates industry median Gross Margin % is 25.85. Deluxe's value of 51.92% is 100.9% above this industry median. Based on the distribution chart, Deluxe ranks #60 out of 511 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Deluxe has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deluxe's Gross Margin % compare to AIAI and CODI?
According to the Conglomerates industry distribution chart, Deluxe ranks #60 out of 511 companies for Gross Margin %. This places Deluxe in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.85. Deluxe's value of 51.92% is 100.9% above this benchmark. Historically, Deluxe's own Gross Margin % has ranged from 52.89 to 63.88 over the past decade. While the company's 10-year median is 57.73 vs. the industry median of 25.85, Deluxe has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.85, based on 511 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deluxe's current Gross Margin % of 51.92% is 100.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Deluxe and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deluxe's current Gross Margin % is 51.92%, which is 10% below median its own 10-year median of 57.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deluxe stock overvalued right now?
Based on GuruFocus' analysis, Deluxe (DLX) is currently considered Modestly Overvalued. The stock's GF Value™ is $18.38, compared to a current price of $23.50 — trading 27.9% above its estimated fair value. The current Gross Margin % is 51.92%, which is 10% below median its 10-year median of 57.73 and 100.9% above the Conglomerates industry median of 25.85. Deluxe's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Deluxe (DLX), the current Gross Margin % is 51.92% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Deluxe (DLX) Overvalued in 2026?
Based on GuruFocus' analysis, Deluxe stock appears to be overvalued.
The current stock price of $23.50 is trading 27.9% above its estimated GF Value™ of $18.38.
GuruFocus considers Deluxe to be Modestly Overvalued.
Key valuation signals for DLX:
Gross Margin %: 51.92% (10% below median its 10-year median of 57.73)
GF Value™: $18.38 vs. price of $23.50 (27.9% above fair value)
Industry Position: 100.9% above the Conglomerates median (#60 of 511)
No single metric tells the full story. See the DLX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deluxe Corp is principally a payments and data company. Its reportable segments are: Merchant Services, B2B Payments, Data Solutions, and Print. Maximum revenue is derived from its Print segment, which provides printed personal and business checks, business essentials, as well as branded promotional, print, apparel, and digital storefront solutions. The Merchant Services segment provides electronic credit and debit card authorization, payment systems, and processing services. The B2B segment offers treasury management solutions, integrated accounts payable disbursements, and fraud and security services, and the Data Solutions segment offers data, analytics, and marketing services, as well as financial institution profitability reporting and business incorporation services.
69GF Score
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