Ennis (EBF) AI Stock Analysis

• Market Cap: $523.82M
• Dividend Yield: 5.53%
• Average Volume (3M): 163.19K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.40
• Revenue Growth: -2.66%
• EPS Growth: 4.52%
• Country: US
• Employees: 1,941
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.42
• Shares Outstanding: 25,292,866
• 10 Day Avg. Volume: 126,933
• 30 Day Avg. Volume: 163,185
• PEG Ratio: -2.26
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 9.20
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 6.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): $394.47M

• Rating: 76 Outperform
• Price Target: $23.00 ▲(23.46% Upside)
• Action: Reiterated Date: 01/08/26
• Date: Action: Reiterated 01/08/26

The score is driven primarily by strong financial quality—especially the very low leverage and solid profitability—supported by attractive valuation (low P/E and high dividend yield). Technical indicators are more neutral, with mild near-term softness versus the 20-day average and no strong momentum signal.

Positive Factors

Conservative balance sheet

Extremely low leverage (debt-to-equity ~0.01) materially reduces financial risk, giving the company durable flexibility to fund operations, weather cyclical downturns, sustain dividends, and pursue opportunistic M&A or capex without reliance on external debt markets.

Strong profitability and returns

High gross and healthy net margins, alongside a mid-teens ROE, indicate persistent pricing power and efficient operations. This earnings quality supports long-term cash generation, reinvestment, and shareholder distributions even if revenue growth moderates.

Diversified revenue streams

Multiple sales channels, distributor partnerships, expansion into digital printing and acquisitions broaden end markets and reduce single-segment exposure. This structural diversification supports steadier demand, cross-sell opportunities, and incremental margin expansion over time.

Negative Factors

Uneven multi-year revenue trend

Inconsistent top-line performance over several years complicates forecasting and capital allocation. Persistent volatility in revenue can constrain long-term planning, hinder scale benefits in operations, and make it harder to rely on recurring growth for investment or payout increases.

Weakening free cash flow momentum

A recent decline in FCF growth signals pressure on the company's ability to convert earnings into discretionary cash. If sustained, this erodes capacity for dividends, buybacks, or reinvestment, and increases reliance on operating improvements rather than balance-sheet flexibility.

Year-to-year asset/equity volatility

Material swings in assets and equity suggest balance-sheet volatility from working capital, acquisitions, or one-time adjustments. Such variability creates uncertainty about underlying capital stability and can obscure true return trends or financing needs across planning horizons.

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 generates revenue through multiple streams, primarily from the sale of printed products and business forms. The company benefits from a diverse client base, including large corporations and small businesses, which helps stabilize its revenue. Key revenue streams include custom printed products, pre-printed forms, and promotional products. Additionally, Ennis has established significant partnerships with distributors and resellers, enabling them to reach a broader market and enhance their sales channels. The company also leverages economies of scale in production, allowing for competitive pricing that attracts a wide array of customers. Overall, the combination of a diverse product line, strategic partnerships, and a broad customer base contributes to Ennis's financial performance.

Ennis Financial Statement Overview

Summary

Strong overall fundamentals: solid profitability (~31% gross margin, ~11% net margin) and an exceptionally conservative balance sheet (debt-to-equity ~0.01; ROE ~13.6%). Offsets include uneven multi-year revenue trends and recently softer free cash flow momentum (FCF growth negative in the latest TTM).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability with ~31% gross margin and ~11% net margin, and revenue growth rebounded to ~10% after declines in the prior two annual periods. Operating profitability remains healthy (mid-to-high teens EBIT/EBITDA margins), but the multi-year revenue trend has been uneven and margins have not consistently expanded versus the stronger 2023 period.

Balance Sheet

Balance sheet is very conservative with minimal leverage (TTM debt-to-equity ~0.01) and a strong equity base. Returns on equity are consistently solid (TTM ~13.6%), indicating good earnings power without relying on debt. The main watch item is that total assets and equity move around year-to-year, but overall financial risk from leverage appears low.

Cash Flow

Cash generation is generally sound: TTM operating cash flow exceeds net income (~1.36x), and free cash flow is close to net income (~0.89x), supporting earnings quality. However, free cash flow growth is negative in the latest TTM period (and was also slightly negative in the most recent annual report), suggesting some near-term pressure or normalization after a stronger 2024 year.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	388.74M	394.62M	420.11M	431.84M	400.01M	357.97M
Gross Profit	119.65M	117.29M	125.34M	131.05M	114.72M	103.77M
EBITDA	75.48M	68.48M	74.02M	77.61M	60.73M	51.32M
Net Income	42.80M	40.22M	42.60M	47.30M	28.98M	24.09M
Balance Sheet
Total Assets	354.26M	348.94M	399.19M	393.83M	368.84M	364.39M
Cash, Cash Equivalents and Short-Term Investments	31.28M	72.47M	110.92M	93.97M	85.61M	75.19M
Total Debt	16.10M	9.48M	9.57M	13.01M	15.33M	18.91M
Total Liabilities	49.46M	46.95M	49.35M	62.40M	65.03M	63.84M
Stockholders Equity	304.79M	301.98M	349.84M	331.43M	303.81M	300.55M
Cash Flow
Free Cash Flow	42.47M	59.97M	62.57M	42.44M	44.14M	49.14M
Operating Cash Flow	47.62M	65.86M	69.07M	46.78M	50.68M	52.82M
Investing Cash Flow	-31.37M	13.20M	-54.99M	-11.46M	-10.05M	-21.18M
Financing Cash Flow	-40.67M	-93.65M	-26.45M	-26.96M	-30.21M	-24.70M

Ennis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 18.63 is below the 20-day moving average (MA) of 20.06, below the 50-day MA of 18.97, and above the 200-day MA of 17.88, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBF.

Ennis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBF	76 Outperform	$523.82M	12.50	14.21%	5.53%	-2.66%	4.52%
AVY	70 Outperform	$15.10B	22.24	30.21%	2.04%	1.03%	5.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACCO	59 Neutral	$379.47M	9.80	6.45%	8.17%	-9.53%	―
TITN	51 Neutral	$441.70M	-7.53	-9.63%	―	-8.92%	-304.76%
CODI	45 Neutral	$515.37M	-1.31	-41.05%	20.53%	-15.85%	-59.42%