Ennis (EBF) AI Stock Analysis

• Market Cap: $504.64M
• Dividend Yield: 5.15%
• Average Volume (3M): 249.93K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.49
• Revenue Growth: -6.12%
• EPS Growth: -7.93%
• Country: US
• Employees: 1,941
• Sector: Industrials
• Sector Strength: 63
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.58
• Shares Outstanding: 26,012,604
• 10 Day Avg. Volume: 184,883
• 30 Day Avg. Volume: 249,928
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.32
• Price to Cash Flow (P/CF): 7.30
• P/FCF Ratio: 7.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Ennis benefits from a robust financial foundation, characterized by low leverage and strong cash flows, but faces challenges with declining revenue. Technical indicators suggest bearish sentiment, while valuation metrics point to an attractively priced stock with a good dividend yield. Investors should be mindful of the current downward trend, despite the strong financial health.

Ennis Business Overview & Revenue Model

Company Description

Ennis, Inc. designs, manufactures, and sells business forms and other business products in the United States. The company offers snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls, and pressure sensitive products under the Ennis, Royal Business Forms, Block Graphics, Specialized Printed Forms, 360º Custom Labels, ColorWorx, Enfusion, Uncompromised Check Solutions, VersaSeal, Ad Concepts, FormSource Limited, Star Award Ribbon Company, Witt Printing, B&D Litho, Genforms, PrintGraphics, Calibrated Forms, PrintXcel, Printegra, Falcon Business Forms, Forms Manufacturers, Mutual Graphics, TRI-C Business Forms, Major Business Systems, Independent Printing, Hoosier Data Forms, Hayes Graphics, Wright Business Graphics, Wright 360, Integrated Print & Graphics, the Flesh Company, Impressions Direct, Ace Forms, and AmeriPrint brands. It also provides point of purchase advertising for large franchise and fast-food chains, as well as kitting and fulfillment under the Adams McClure brand name; and presentation and document folders under the Admore, Folder Express, and Independent Folders brands. In addition, the company offers custom printed, high performance labels, and custom and stock tags under the Ennis Tag & Label brand name; custom and stock tags and labels under the Allen-Bailey Tag & Label, Atlas Tag & Label, Kay Toledo Tag, and Special Service Partners brands; custom and imprinted envelopes under the Trade Envelopes, Block Graphics, Wisco, and National Imprint Corporation brands; and financial and security documents under the Northstar and General Financial Supply, and Infoseal brands. It distributes business products and forms through independent distributors. The company was formerly known as Ennis Business Forms, Inc. Ennis, Inc. was incorporated in 1909 and is headquartered in Midlothian, Texas.

How the Company Makes Money

Ennis makes money through the production and sale of its printed business products and apparel. The company derives revenue from its extensive portfolio of printed forms, labels, tags, and envelopes, which are essential for business operations across various sectors. Additionally, Ennis generates income from its apparel division, which includes custom-printed T-shirts and other clothing items. Key revenue streams include both direct sales to businesses and partnerships with distributors and retailers. Ennis benefits from a broad client base and long-standing relationships with distributors, which contribute to its stable earnings. The company's ability to offer customized solutions and a wide range of products enhances its market competitiveness and drives its revenue growth.

Ennis Financial Statement Overview

Summary

Ennis showcases a strong balance sheet with low leverage and high equity, complemented by solid cash flow generation. Despite declining revenues, profitability metrics remain healthy, but the company should focus on reversing the revenue contraction to enhance overall financial performance.

Income Statement

Ennis demonstrates stable profitability with a gross profit margin of 29.44% and a net profit margin of 10.35% for TTM. However, the company shows a negative revenue growth rate of -4.94% compared to the previous year, indicating a decline in sales. The EBIT margin stands at 13.24%, and the EBITDA margin is 17.66%, which are healthy but reflect a contraction from prior periods.

Balance Sheet

The company's financial stability is strong with a debt-to-equity ratio of 0.036, indicating low leverage. Return on equity stands at 13.89%, showcasing good profitability from equity investments. The equity ratio is a robust 86.01%, highlighting a solid equity base relative to total assets.

Cash Flow

Free cash flow grew by 1.96% year-over-year, reflecting the company's efficient cash generation. The operating cash flow to net income ratio is 1.68, indicating strong cash conversion from earnings. Additionally, the free cash flow to net income ratio is 1.54, further supporting the company's healthy cash flow position.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
399.35M	420.11M	431.84M	400.01M	357.97M	438.41M
	Gross Profit
117.60M	125.34M	131.05M	114.72M	103.77M	128.92M
	EBIT
52.90M	56.46M	37.01M	24.81M	17.86M	32.64M
	EBITDA
70.53M	74.02M	82.29M	60.73M	51.32M	70.05M
	Net Income Common Stockholders
41.34M	42.60M	47.30M	28.98M	24.09M	38.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.06M	110.92M	93.97M	85.61M	75.19M	68.26M
	Total Assets
432.70M	399.19M	393.83M	368.84M	364.39M	365.70M
	Total Debt
41.82M	9.57M	4.85M	15.33M	5.34M	5.67M
	Net Debt
20.75M	-72.02M	-89.12M	-70.28M	-69.85M	-62.59M
	Total Liabilities
119.44M	49.35M	62.40M	65.03M	63.84M	71.37M
	Stockholders Equity
313.26M	349.84M	331.43M	303.81M	300.55M	294.33M
Cash Flow		Free Cash Flow
63.80M	62.57M	42.44M	44.14M	49.14M	53.83M
	Operating Cash Flow
69.67M	69.07M	46.78M	50.68M	52.82M	57.22M
	Investing Cash Flow
-3.90M	-54.99M	-11.46M	-10.05M	-21.18M	-21.45M
	Financing Cash Flow
-93.96M	-26.45M	-26.96M	-30.21M	-24.70M	-55.96M

Ennis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBF, the sentiment is Negative. The current price of 19.4 is below the 20-day moving average (MA) of 20.37, below the 50-day MA of 20.68, and below the 200-day MA of 20.53, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 42.45 is Neutral, neither overbought nor oversold. The STOCH value of 37.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBF.

Ennis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBF	66 Neutral	$504.64M	12.25	12.81%	5.15%	-6.12%	-7.93%
IIIN	63 Neutral	$468.28M	24.50	5.79%	0.50%	-11.06%	-14.18%
Sector *	62 Neutral	$7.24B	12.39	3.08%	3.39%	3.63%	-14.35%
FLX	56 Neutral	$191.04M	124.65	-49.98%	―	-0.69%	―
TWI	53 Neutral	$413.31M	―	-1.15%	―	1.32%	-104.92%
TRC	51 Neutral	$420.75M	151.45	0.57%	―	-6.38%	-17.99%
JELD	44 Neutral	$492.56M	―	-25.51%	―	-15.09%	-358.01%

Ennis Corporate Events

Ennis Announces Retirement of Key Executives in 2025

Ennis announced the upcoming retirements of key executives, including Ronald M. Graham, Vice President – Administration, and Terry Pennington, Chief Revenue Officer, effective February 28, 2025. Both retirements are amicable and not due to any disagreements with company operations. Their responsibilities will be reassigned to existing officers, and their contributions over the years are highly valued. Additionally, John R. Blind, a long-serving board member and lead independent director, will retire after the 2025 Annual Meeting of Shareholders in July. His departure marks the end of nearly nine years of service on the board, where he played a significant role in governance and compensation committees.