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On June 18, 2026 Deluxe announced an agreement to acquire Celero Commerce for roughly $630 million to expand its small-business payments footprint. The company reported first-quarter 2026 operating results in an 8-K filed on May 6, 2026 and disclosed the March 2026 finalization of a divestiture of certain Safeguard small-business distributor channel assets, generating approximately $22.8 million in net proceeds.
Technical Analysis
ADX at 25.03 indicates a strong directional environment, which raises the influence of directional signals on near-term price behavior and makes trend-following indicators more consequential for swing expectations.
DI+ shows a peak-and-reversal, a bearish signal that signals recent loss of buying pressure; by contrast DI- sits at 25.76 and registers as decreasing, a bullish signal indicating diminished selling pressure. The simultaneous DI+ peak-and-reversal and DI- decrease create a tension that keeps short-term directional bias dependent on whether DI+ resumes upward momentum.
MACD registered -0.70 with the MACD line rising and sitting above the signal line (-0.83), a bullish momentum inflection that supports a rebound in price momentum even though the oscillator remains negative.
MRO at -3.1 with a peak-and-reversal trend implies the price currently sits below the model target and carries upside potential, but the oscillator’s recent peak-and-reverse tempers the immediacy of that potential for the next weeks.
RSI near 41.6 with a peak-and-reversal trend signals neutral-to-weak momentum after a recent high; the RSI level leaves room for upward movement but recent reversal warns against assuming immediate strength.
Price sits at $22.94 below the 50-day average ($26.02) and slightly under the 20-day average ($23.30); the 12-day EMA trends lower. Bollinger bands compress around $23, indicating contained volatility. These price–moving-average relationships reinforce a consolidation profile that a MACD crossover seeks to resolve; with ADX elevated, a breakout in either direction would likely carry follow-through.
Fundamental Analysis
Revenue totaled $538.1 million for the period ending 2026-03-31. YoY revenue growth registers at -82.41% and quarter-over-quarter revenue change shows a large negative percentage, indicating top-line contraction relative to the comparison periods used; however gross margin sits at 51.923%, broadly above the industry peer mean of 39.201% and above the peer median of 46.174%, supporting stronger per-dollar profitability despite revenue pressures.
Operating income registered $70.1 million with an operating margin of 13.027%, and EBIT of $74.3 million produces an EBIT margin of 13.808%, which exceeds the industry peer mean (6.595%) and even the industry peer high (12.506%). QoQ change in EBIT margin shows a 47.191% increase and YoY change shows a 46.582% increase, both indicating meaningful margin improvement that supports the valuation premium implied by operating gains.
EBITDA reached $111.0 million and free cash flow measured $27.3 million, with free cash flow yield of 2.136%. Operating cash flow totaled $52.7 million and the cash conversion ratio stands at 10.655, highlighting cash generation but with a free-cash-growth QoQ decline. Cash and short-term investments total $27.2 million while net debt sits near $1.3699 billion, yielding debt-to-assets of 56.582% and debt-to-EBITDA of 13.03; interest coverage sits at 2.68x, slightly above the industry peer mean of 2.08x yet reflective of elevated leverage and sensitivity to cash-flow swings.
Earnings per share came in at $1.05 versus an estimate of $0.91, producing an EPS surprise ratio of 15.38%, indicating upside to consensus for the reported quarter. Forward EPS of $1.03 and a forward P/E of roughly 24.71 position valuation at a modest multiple relative to historical small-cap payments peers; current P/E stands at 26.64. Price-to-book equals $1.84 while price-to-sales equals 2.38; these multiples, coupled with WMDST’s under-valued assessment, suggest the market may not fully reflect the recent margin improvements and payments-strategy optionality.
Asset efficiency measures show asset turnover at 19.856%, below the industry peer mean of 39.879% and median of 42.716%, indicating room to improve revenue generation from the asset base. Return on equity at 5.14% and return on assets at 1.321% improved QoQ and YoY but remain modest in absolute terms. Capital expenditure inflection shows capital expenditures of $25.4 million (negative capex figure in the dataset) and a capex-to-revenue ratio near -4.72% consistent with ongoing investment into payments and data platforms.
The company finalized a small-business channel divestiture in March 2026 that generated roughly $22.8 million in proceeds, and the June 18, 2026 agreement to acquire Celero Commerce for about $630 million should materially expand payments capabilities and recurring revenue potential if completed.
Valuation summary: WMDST values the stock as under-valued, a view supported by above-peer EBIT margin performance, recent EPS upside, and a strategic shift toward recurring payments revenue—offset by high leverage and below-peer asset turnover that constrain upside unless integration and revenue synergies materialize.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-06 |
| NEXT REPORT DATE: | 2026-08-05 |
| CASH FLOW | Begin Period Cash Flow | $ 313.0 M |
| Operating Cash Flow | $ 52.7 M | |
| Capital Expenditures | $ -25.40 M | |
| Change In Working Capital | $ -49.40 M | |
| Dividends Paid | $ -15.30 M | |
| Cash Flow Delta | $ -250.70 M | |
| End Period Cash Flow | $ 62.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 538.1 M | |
| Forward Revenue | $ 176.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 258.7 M | |
| Depreciation | $ 6.4 M | |
| Depreciation and Amortization | $ 36.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 468.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 279.4 M | |
| EBITDA | $ 111.0 M | |
| EBIT | $ 74.3 M | |
| Operating Income | $ 70.1 M | |
| Interest Income | — | |
| Interest Expense | $ 27.7 M | |
| Net Interest Income | $ -27.70 M | |
| Income Before Tax | $ 46.6 M | |
| Tax Provision | $ 10.8 M | |
| Tax Rate | 23.2 % | |
| Net Income | $ 35.8 M | |
| Net Income From Continuing Operations | $ 35.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.91 | |
| EPS Actual | $ 1.05 | |
| EPS Difference | $ 0.14 | |
| EPS Surprise | 15.385 % | |
| Forward EPS | $ 1.03 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.6 B | |
| Intangible Assets | $ 1.8 B | |
| Net Tangible Assets | $ -1.06 B | |
| Total Current Assets | $ 392.6 M | |
| Cash and Short-Term Investments | $ 27.2 M | |
| Cash | $ 27.2 M | |
| Net Receivables | $ 130.5 M | |
| Inventory | $ 35.0 M | |
| Long-Term Investments | $ 47.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 160.9 M | |
| Short-Term Debt | $ 16.3 M | |
| Total Current Liabilities | $ 342.1 M | |
| Net Debt | $ 1.4 B | |
| Total Debt | $ 1.4 B | |
| Total Liabilities | $ 1.9 B | |
| EQUITY | ||
| Total Equity | $ 696.5 M | |
| Retained Earnings | $ 537.7 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 15.24 | |
| Shares Outstanding | 45.694 M | |
| Revenue Per-Share | $ 11.78 | |
| VALUATION | Market Capitalization | $ 1.3 B |
| Enterprise Value | $ 2.7 B | |
| Enterprise Multiple | 24.3 | |
| Enterprise Multiple QoQ | -12.834 % | |
| Enterprise Multiple YoY | -7.936 % | |
| Enterprise Multiple IPRWA | high: 73.871 median: 37.977 mean: 35.647 DLX: 24.3 low: 23.471 |
|
| EV/R | 5.013 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.67 | |
| Asset To Liability | 1.375 | |
| Debt To Capital | 0.675 | |
| Debt To Assets | 0.566 | |
| Debt To Assets QoQ | 9.434 % | |
| Debt To Assets YoY | -6.135 % | |
| Debt To Assets IPRWA | high: 0.85 median: 0.85 mean: 0.623 DLX: 0.566 low: 0.026 |
|
| Debt To Equity | 2.077 | |
| Debt To Equity QoQ | -4.568 % | |
| Debt To Equity YoY | -16.71 % | |
| Debt To Equity IPRWA | high: 3.976 DLX: 2.077 mean: -1.662 low: -3.331 median: -3.331 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.835 | |
| Price To Book QoQ | 26.816 % | |
| Price To Book YoY | 53.506 % | |
| Price To Book IPRWA | high: 2.809 DLX: 1.835 mean: -1.591 low: -3.49 median: -3.49 |
|
| Price To Earnings (P/E) | 26.639 | |
| Price To Earnings QoQ | 16.908 % | |
| Price To Earnings YoY | 20.106 % | |
| Price To Earnings IPRWA | high: 136.937 median: 136.937 mean: 109.469 low: 27.585 DLX: 26.639 |
|
| PE/G Ratio | 2.841 | |
| Price To Sales (P/S) | 2.375 | |
| Price To Sales QoQ | 29.123 % | |
| Price To Sales YoY | 71.3 % | |
| Price To Sales IPRWA | high: 5.436 mean: 2.511 DLX: 2.375 median: 2.064 low: 0.612 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 24.711 | |
| Forward PE/G | 2.636 | |
| Forward P/S | 7.239 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 89.158 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.199 | |
| Asset Turnover Ratio QoQ | 1.11 % | |
| Asset Turnover Ratio YoY | 0.025 % | |
| Asset Turnover Ratio IPRWA | high: 0.468 median: 0.427 mean: 0.399 low: 0.27 DLX: 0.199 |
|
| Receivables Turnover | 3.938 | |
| Receivables Turnover Ratio QoQ | 3.108 % | |
| Receivables Turnover Ratio YoY | -4.979 % | |
| Receivables Turnover Ratio IPRWA | high: 12.371 median: 12.371 mean: 8.924 DLX: 3.938 low: 1.906 |
|
| Inventory Turnover | 7.553 | |
| Inventory Turnover Ratio QoQ | -0.53 % | |
| Inventory Turnover Ratio YoY | 4.834 % | |
| Inventory Turnover Ratio IPRWA | DLX: 7.553 high: 3.869 median: 3.869 mean: 3.163 low: 0.642 |
|
| Days Sales Outstanding (DSO) | 23.173 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -22.053 | |
| Cash Conversion Cycle Days QoQ | 1.483 % | |
| Cash Conversion Cycle Days YoY | -19.608 % | |
| Cash Conversion Cycle Days IPRWA | high: 183.376 mean: 6.849 DLX: -22.053 low: -26.81 median: -26.81 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 10.655 | |
| CapEx To Revenue | -0.047 | |
| CapEx To Depreciation | -3.969 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.1 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ -1.06 B | |
| Net Working Capital | $ 50.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.08 | |
| Current Ratio | 1.148 | |
| Current Ratio QoQ | 10.866 % | |
| Current Ratio YoY | 23.854 % | |
| Current Ratio IPRWA | high: 3.724 mean: 1.317 DLX: 1.148 low: 0.679 median: 0.679 |
|
| Quick Ratio | 1.045 | |
| Quick Ratio QoQ | 6.333 % | |
| Quick Ratio YoY | 24.499 % | |
| Quick Ratio IPRWA | high: 2.173 DLX: 1.045 mean: 0.846 low: 0.51 median: 0.51 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 13.031 | |
| Cost Of Debt | 1.55 % | |
| Interest Coverage Ratio | 2.682 | |
| Interest Coverage Ratio QoQ | 56.315 % | |
| Interest Coverage Ratio YoY | 65.955 % | |
| Interest Coverage Ratio IPRWA | high: 2.717 DLX: 2.682 mean: 2.083 median: 2.038 low: 0.119 |
|
| Operating Cash Flow Ratio | 0.242 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 57.437 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.34 | |
| Dividend Payout Ratio | 0.427 | |
| Dividend Rate | $ 0.33 | |
| Dividend Yield | 0.012 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -10.731 % | |
| Revenue Growth | 0.538 % | |
| Revenue Growth QoQ | -157.787 % | |
| Revenue Growth YoY | -82.413 % | |
| Revenue Growth IPRWA | DLX: 0.538 % high: -3.797 % mean: -11.671 % low: -14.968 % median: -14.968 % |
|
| Earnings Growth | 9.375 % | |
| Earnings Growth QoQ | -178.603 % | |
| Earnings Growth YoY | -187.502 % | |
| Earnings Growth IPRWA | DLX: 9.375 % high: -28.571 % mean: -58.021 % low: -71.795 % median: -71.795 % |
|
| MARGINS | ||
| Gross Margin | 51.923 % | |
| Gross Margin QoQ | -0.493 % | |
| Gross Margin YoY | -0.888 % | |
| Gross Margin IPRWA | DLX: 51.923 % high: 46.174 % median: 46.174 % mean: 39.201 % low: 21.153 % |
|
| EBIT Margin | 13.808 % | |
| EBIT Margin QoQ | 47.191 % | |
| EBIT Margin YoY | 46.582 % | |
| EBIT Margin IPRWA | DLX: 13.808 % high: 12.506 % mean: 6.595 % median: 5.839 % low: 0.282 % |
|
| Return On Sales (ROS) | 13.027 % | |
| Return On Sales QoQ | 20.042 % | |
| Return On Sales YoY | 38.291 % | |
| Return On Sales IPRWA | DLX: 13.027 % high: 12.506 % mean: 6.721 % median: 5.866 % low: -2.435 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 27.3 M | |
| Free Cash Flow Yield | 2.136 % | |
| Free Cash Flow Yield QoQ | -73.492 % | |
| Free Cash Flow Yield YoY | -34.659 % | |
| Free Cash Flow Yield IPRWA | high: 4.8 % DLX: 2.136 % median: -3.079 % mean: -5.395 % low: -30.092 % |
|
| Free Cash Growth | -65.589 % | |
| Free Cash Growth QoQ | -181.055 % | |
| Free Cash Growth YoY | 107.54 % | |
| Free Cash Growth IPRWA | high: 5.967 % DLX: -65.589 % mean: -125.557 % median: -145.618 % low: -177.988 % |
|
| Free Cash To Net Income | 0.763 | |
| Cash Flow Margin | 15.406 % | |
| Cash Flow To Earnings | 2.316 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.321 % | |
| Return On Assets QoQ | 200.911 % | |
| Return On Assets YoY | 154.528 % | |
| Return On Assets IPRWA | high: 2.488 % DLX: 1.321 % mean: 0.949 % median: 0.667 % low: -0.815 % |
|
| Return On Capital Employed (ROCE) | 3.356 % | |
| Return On Equity (ROE) | 0.051 | |
| Return On Equity QoQ | 192.045 % | |
| Return On Equity YoY | 128.242 % | |
| Return On Equity IPRWA | DLX: 0.051 high: 0.049 mean: -0.006 low: -0.026 median: -0.026 |
|
| DuPont ROE | 5.2 % | |
| Return On Invested Capital (ROIC) | 2.726 % | |
| Return On Invested Capital QoQ | 45.0 % | |
| Return On Invested Capital YoY | 56.487 % | |
| Return On Invested Capital IPRWA | high: 2.916 % median: 2.916 % mean: 2.781 % DLX: 2.726 % low: 0.056 % |
|