NYSE:EBF

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 54.6% below its fair value

Earnings grew by 7.2% over the past year

Pays a high and reliable dividend of 4.36%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet, undervalued 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

EBF

0.2%

US Commercial Services

1.1%

US Market


1 Year Return

14.5%

EBF

22.8%

US Commercial Services

17.8%

US Market

Return vs Industry: EBF underperformed the US Commercial Services industry which returned 22.8% over the past year.

Return vs Market: EBF underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

EBFIndustryMarket
7 Day1.2%0.2%1.1%
30 Day2.4%0.9%1.4%
90 Day-3.3%4.0%3.9%
1 Year19.7%14.5%27.1%22.8%20.3%17.8%
3 Year34.2%17.5%55.8%45.6%44.8%35.4%
5 Year116.8%61.8%103.8%82.9%71.3%52.4%

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 ($20.63) is trading below our estimate of fair value ($45.45)

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 (14.2x) compared to the Commercial Services industry average (26.4x).

PE vs Market: EBF is good value based on its PE Ratio (14.2x) compared to the US market (18.4x).


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 good value based on its PB Ratio (1.8x) compared to the US Commercial Services industry average (2x).


Next Steps

Future Growth

How is Ennis forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EBF's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if EBF's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EBF's revenue (1.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: EBF's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EBF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ennis performed over the past 5 years?

34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBF has high quality earnings.

Growing Profit Margin: EBF's current net profit margins (8.9%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: EBF's earnings have grown significantly by 34.4% per year over the past 5 years.

Accelerating Growth: EBF's earnings growth over the past year (7.2%) is below its 5-year average (34.4% per year).

Earnings vs Industry: EBF earnings growth over the past year (7.2%) exceeded the Commercial Services industry -3.1%.


Return on Equity

High ROE: EBF's Return on Equity (12.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ennis's financial position?


Financial Position Analysis

Short Term Liabilities: EBF's short term assets ($137.0M) exceed its short term liabilities ($38.4M).

Long Term Liabilities: EBF's short term assets ($137.0M) exceed its long term liabilities ($28.5M).


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 28.1%.

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 not covered by short term assets (assets are -3.8573330808428E+16x debt).


Next Steps

Dividend

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

4.36%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: EBF's dividend (4.36%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: EBF's dividend (4.36%) is in the top 25% of dividend payers in the US market (3.67%)


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 (62.1%), 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

What is the CEO of Ennis's salary, the management and board of directors tenure and is there insider trading?

18.2yrs

Average management tenure


CEO

Keith Walters (69yo)

22.1yrs

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 ($USD3.84M) is above average for companies of similar size in the US market ($USD1.69M).

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


Management Age and Tenure

18.2yrs

Average Tenure

69.5yo

Average Age

Experienced Management: EBF's management team is seasoned and experienced (18.2 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

67yo

Average Age

Experienced Board: EBF's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$595,27714 Aug 19
Michael Magill
EntityIndividual
Role
Senior Key Executive
Executive VP & Corporate Secretary
Shares29,749
Max PriceUS$20.01

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Management Team

  • Keith Walters (69yo)

    Executive Chairman

    • Tenure: 22.1yrs
    • Compensation: US$3.84m
  • Ronald Graham (70yo)

    Vice President of Administration

    • Tenure: 21.5yrs
    • Compensation: US$750.60k
  • Richard Travis (63yo)

    CFO, VP of Finance & Treasurer

    • Tenure: 14.1yrs
    • Compensation: US$1.05m
  • Michael Magill (71yo)

    Executive VP & Corporate Secretary

    • Tenure: 14.8yrs
    • Compensation: US$1.33m

Board Members

  • Keith Walters (69yo)

    Executive Chairman

    • Tenure: 22.1yrs
    • Compensation: US$3.84m
  • Frank Bracken (78yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$67.68k
  • Alejandro Quiroz (66yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$107.01k
  • Michael Schaefer (68yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$107.01k
  • John Blind (65yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$99.51k
  • Godfrey Long (77yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$78.18k
  • Troy Priddy (67yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$73.60k
  • Gary Mozina (60yo)

    Director

    • Tenure: 0.6yrs
  • Barbara Clemens (60yo)

    Independent Director

    • Tenure: 0.4yrs

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$539.818m
  • Shares outstanding: 26.10m
  • 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, inte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:36
End of Day Share Price2019/12/10 00:00
Earnings2019/08/31
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.