Ennis, Inc. (EBF) stock analysis

P/E above its 5-year median

Ennis's P/E of 13.8 is above its own 5-year median of 12.8.

P/E below the industry

Ennis's P/E of 13.8 is below the Printing, Publishing, and Allied Industries median of 17.7.

EV/EBITDA above its 5-year median

Ennis's EV/EBITDA of 8.9 is above its 5-year median of 8.8.

P/B below the industry

Ennis's price-to-book of 1.70 is below the Printing, Publishing, and Allied Industries median of 2.39.

Trading below fair value

The share price of $21.08 is below our fair value estimate of $23.83.

Margin of safety under 20%

The price is 11.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -3.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -7.7% over the last twelve months, against a 5-year average of 12.1% a year.

Growing faster than the industry

Revenue grew 2.3% over the last twelve months; the Printing, Publishing, and Allied Industries median is 1.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 30.6% over the last twelve months, against 30.1% a year earlier.

Return on equity under 15%

Return on equity was 12.6% over the last twelve months and averaged 12.7% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Ennis's return on equity of 12.6% is above the Printing, Publishing, and Allied Industries median of 7.4%.

Earnings grew over 5 years

Net income grew 12.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.8% over the last twelve months, against a 5-year average of 9.9%.

Net margin above the industry

Ennis's net margin of 9.8% is above the Printing, Publishing, and Allied Industries median of 3.6%.

No debt

Ennis has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 3.79 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 9.02; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ennis paid dividends worth 4.8% of the share price over the last twelve months.

Yield above Treasuries

The 4.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ennis yields 4.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 65.7% of net income.

Covered by free cash flow

Dividends take 44.4% of free cash flow.