NYSE:EBF

Stock Analysis Report

Executive Summary

Ennis, Inc. designs, manufactures, and sells business forms and other business products in the United States.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Ennis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EBF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

EBF

-5.6%

US Commercial Services

-2.8%

US Market


1 Year Return

-18.2%

EBF

-21.4%

US Commercial Services

-15.9%

US Market

Return vs Industry: EBF exceeded the US Commercial Services industry which returned -21.4% over the past year.

Return vs Market: EBF underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

EBFIndustryMarket
7 Day1.7%-5.6%-2.8%
30 Day-14.5%-28.0%-18.8%
90 Day-21.1%-29.0%-24.0%
1 Year-14.6%-18.2%-18.7%-21.4%-14.2%-15.9%
3 Year22.3%7.1%9.7%2.6%9.9%2.8%
5 Year64.4%24.6%30.7%16.8%27.2%13.3%

Price Volatility Vs. Market

How volatile is Ennis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ennis undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBF ($17.19) is trading below our estimate of fair value ($56.62)

Significantly Below Fair Value: EBF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EBF is good value based on its PE Ratio (11.8x) compared to the Commercial Services industry average (19.4x).

PE vs Market: EBF is good value based on its PE Ratio (11.8x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EBF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EBF is overvalued based on its PB Ratio (1.5x) compared to the US Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is Ennis forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.0%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ennis has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ennis performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBF has high quality earnings.

Growing Profit Margin: EBF's current net profit margins (8.8%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: EBF has become profitable over the past 5 years, growing earnings by 34.9% per year.

Accelerating Growth: EBF's earnings growth over the past year (1.4%) is below its 5-year average (34.9% per year).

Earnings vs Industry: EBF earnings growth over the past year (1.4%) underperformed the Commercial Services industry 1.4%.


Return on Equity

High ROE: EBF's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Ennis's financial position?


Financial Position Analysis

Short Term Liabilities: EBF's short term assets ($144.8M) exceed its short term liabilities ($38.3M).

Long Term Liabilities: EBF's short term assets ($144.8M) exceed its long term liabilities ($28.4M).


Debt to Equity History and Analysis

Debt Level: EBF is debt free.

Reducing Debt: EBF has no debt compared to 5 years ago when its debt to equity ratio was 35.1%.

Debt Coverage: EBF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EBF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EBF has a high level of physical assets or inventory.

Debt Coverage by Assets: EBF's debt is covered by short term assets (assets are 4.0744347303798E+16x debt).


Next Steps

Dividend

What is Ennis's current dividend yield, its reliability and sustainability?

5.24%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EBF's dividend (5.24%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: EBF's dividend (5.24%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: EBF's dividends per share have been stable in the past 10 years.

Growing Dividend: EBF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.8%), EBF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

18.5yrs

Average management tenure


CEO

Keith Walters (69yo)

22.42s

Tenure

US$3,840,229

Compensation

Mr. Keith S. Walters has been the President at Ennis Inc. (formerly Ennis Business Forms, Inc.) since July 1998 and its Chief Executive Officer since November 1997. Mr. Walters joined Ennis Business Forms  ...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD3.84M) is above average for companies of similar size in the US market ($USD2.26M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Keith Walters
Executive Chairman22.42yrsUS$3.84m1.22% $5.5m
Richard Travis
CFO, VP of Finance & Treasurer14.42yrsUS$1.05m0.34% $1.5m
Ronald Graham
Vice President of Administration21.83yrsUS$750.60k0.37% $1.6m
Michael Magill
Executive VP & Corporate Secretary15.17yrsUS$1.33m0.46% $2.1m

18.5yrs

Average Tenure

69.5yo

Average Age

Experienced Management: EBF's management team is seasoned and experienced (18.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Walters
Executive Chairman22.42yrsUS$3.84m1.22% $5.5m
Frank Bracken
Independent Director11.83yrsUS$67.68k0.14% $608.0k
Alejandro Quiroz
Independent Director16.75yrsUS$107.01k0.10% $456.5k
Michael Schaefer
Independent Director12.83yrsUS$107.01k0.18% $798.6k
John Blind
Director3.75yrsUS$99.51k0.040% $177.0k
Godfrey Long
Independent Director14.25yrsUS$78.18k0.16% $735.2k
Troy Priddy
Independent Director1.75yrsUS$73.60k0.017% $77.1k
Gary Mozina
Director0.92yrno data0.0077% $34.4k
Barbara Clemens
Independent Director0.75yrno data0.0054% $24.1k

11.8yrs

Average Tenure

67yo

Average Age

Experienced Board: EBF's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ennis, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ennis, Inc.
  • Ticker: EBF
  • Exchange: NYSE
  • Founded: 1909
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: US$447.990m
  • Shares outstanding: 26.06m
  • Website: https://www.ennis.com

Number of Employees


Location

  • Ennis, Inc.
  • 2441 Presidential Parkway
  • Midlothian
  • Texas
  • 76065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBFNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969

Biography

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, and Wright 360 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; and presentation folders 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 brands; 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 brands. It sells its products directly, as well as through private printers and independent distributors to large banking organizations. The company was formerly known as Ennis Business Forms, Inc. Ennis, Inc. was founded in 1909 and is headquartered in Midlothian, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 04:36
End of Day Share Price2020/04/03 00:00
Earnings2019/11/30
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.