Ennis (EBF) Q3: 10.9% Net Margin Strengthens Value Narrative Despite Slower Earnings Growth

Ennis (EBF) has just posted its Q3 2026 numbers, logging about $100.2 million in revenue and net income of roughly $10.8 million, which translated into EPS of $0.43 for the quarter. The company has seen quarterly revenue hover in a tight band between roughly $92.7 million and $100.2 million over the past six reported periods, while EPS has moved between about $0.35 and $0.51, giving investors a steady read on top line and per share performance. With net profit margins running close to 11% over the past year, the latest print keeps the focus squarely on how sustainably Ennis can defend its profitability.

See our full analysis for Ennis.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the most talked-about narratives around Ennis and where the data starts to push back on the consensus storyline.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Hold Near 11% Despite Slower Profit Growth

• Over the last 12 months Ennis earned $42.8 million of net income on $388.7 million of revenue, giving it a 10.9% net margin compared with 10.2% in the prior year.
• What stands out for the bullish case is that five year earnings growth of about 10% per year and a one year gain of 2.8% now sit alongside this slightly higher 10.9% margin, suggesting:
  • Supporters can point to several years of expanding profits and a margin that improved versus the 10.2% level despite only modest recent growth.
  • Cautious investors may note that the latest 2.8% earnings growth is below the five year pace even as profitability held up, which limits how strong the growth argument can be.

Stronger margins with slower growth invite a closer look at how durable Ennis profits are likely to be in a mature niche printer business before assuming the multi year trend can continue unchanged.

📊 Read the full Ennis Consensus Narrative.

11x P/E and 5.53% Yield Shape the Value Story

• The stock trades on an 11x trailing P/E, below the US market at 19.1x and its industry and peer averages at 23.8x and 24.7x, while also offering a 5.53% dividend yield.
• From a bullish angle this combination of lower than market multiples and a comparatively high dividend looks like classic value territory, yet the numbers also leave room for a more skeptical read:
  • Value oriented investors can argue that paying 11x earnings for a business that has grown earnings around 10% per year over five years with a 5.53% yield is a favorable trade off versus the broader market on 19.1x.
  • Others may question whether the current 11x multiple already prices in the slower 2.8% recent earnings growth, meaning the low P/E and high yield are compensation for softer momentum rather than a clear bargain.

DCF Fair Value Sits Far Below $18.07 Share Price

• A DCF fair value of about $0.15 per share is shown in the data versus a current share price of $18.07, a very large gap even with 10.9% margins and five year earnings growth of around 10% per year.
• For more bearish investors this DCF outcome is a focal point, yet it sits alongside other figures that do not obviously point to a broken business, which creates a tension in the narrative:
  • Critics highlight that the DCF fair value being so far below $18.07 is hard to reconcile with any straightforward cash flow based valuation, which they see as a warning signal.
  • At the same time, the same data shows stable revenue near $388.7 million and net profit of $42.8 million with a 10.9% margin, so the DCF view must be weighed against a company that appears consistently profitable on trailing numbers.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Ennis's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Ennis mixes steady profits with slowing earnings growth and a heavily discounted DCF valuation, raising questions about how much upside remains at today price.

If that combination feels limiting, use our these 912 undervalued stocks based on cash flows to quickly zero in on businesses where the valuation looks more aligned with sustainable growth and future upside potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com