Investors maintain a high P/E ratio for Deluxe despite earnings decline, expecting strong future growth. Four warning signs in Deluxe's investment analysis should be noted.

The market outlook transforms due to softer share price decline against the EPS drop. Despite better recent TSR, this upward swing may not hold given previous performance. Investors note more warning signs for Deluxe.

Low ROE suggests Deluxe's business quality may be underperforming, even factoring in high debt. A higher ROE devoid of leveraging debt might indicate a superior business. Still, factors like future profit growth and impending investments need consideration. Deluxe, with its significant debt and relatively lower ROE, might not be the optimal stock to purchase.

Deluxe Corp. CEO, Barry McCarthy believes the shift away from legacy check-printing to more sustainable areas like payment processing and data-driven operations could pave a new growth path for the company.