Ennis, Inc. (NYSE: EBF)

Sector: Industrials Industry: Business Equipment & Supplies CIK: 0000033002
Market Cap 533.39 Mn
P/B 1.40
P/E 15.36
P/S 1.00
ROIC (Qtr) 12.09
Div Yield % 3.84
Rev 1y % (Qtr) 0.40
Total Debt (Qtr) 10.35 Mn
Debt/Equity (Qtr) 0.03
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About

Ennis, Inc., a company known by its EBF stock symbol, is a prominent player in the print industry, specializing in the production of a diverse range of printed materials. The company, which was established in 1909 and is headquartered in Texas, has built a strong reputation for quality, service, and price competitiveness over the years. Ennis' operations span across the United States, with 59 manufacturing plants located in 20 states. The company's product portfolio includes business forms, pressure-seal forms, labels, tags, envelopes, and presentation...

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Investment thesis

Bull case

  • Strong operating cash flow of 47.62M provides robust 4.60x coverage of total debt 10.35M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 31.28M provide 6.80x coverage of short-term debt 4.60M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 206.77M provides 19.98x coverage of total debt 10.35M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 47.62M provides strong 18.64x coverage of stock compensation 2.56M, indicating sustainable incentive practices.
  • Robust free cash flow of 42.83M exceeds capital expenditure of 4.79M by 8.94x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 47.62M barely covers its investment activities of (31.37M), with a coverage ratio of -1.52, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 47.62M provides thin coverage of dividend payments of (26.24M) with a -1.81 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 31.28M provide limited coverage of acquisition spending of (39.58M), which is -0.79x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Retained earnings of 198.70M provide limited buffer against comprehensive income items of (10.40M), which is -19.11x, indicating elevated exposure to market risks.
  • Tax assets of 562000 provide limited offset against tax liabilities of 8.18M, which is 0.07x, indicating potential future cash flow pressure from tax obligations.

Consolidation Items Breakdown of Revenue (2025)

Peer comparison

Companies in the Business Equipment & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EBF Ennis, Inc. 533.39 Mn 15.36 1.00 10.35 Mn
2 ACCO ACCO BRANDS Corp 461.15 Mn 7.23 0.25 962.30 Mn
3 ACTG Acacia Research Corp 322.33 Mn 66.67 1.14 102.73 Mn
4 EHGO EShallGo Inc. 4.41 Mn -0.41 0.33 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.55 0.61
EV to Cash from Ops. EV/CFO 11.50 5.43
EV to Debt EV to Debt 53.21 14.92
EV to EBIT EV/EBIT 9.82 6.11
EV to EBITDA EV/EBITDA 8.33 4.28
EV to Free Cash Flow [EV/FCF] EV/FCF 12.52 6.43
EV to Market Cap EV to Market Cap 1.03 1.21
EV to Revenue EV/Rev 1.03 0.59
Price to Book Value [P/B] P/B 1.40 0.73
Price to Earnings [P/E] P/E 15.36 22.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.63 0.78
Dividend Payout Ratio % Div Payout % (Qtr) 59.90 32.43
Dividend per Basic Share Div per Share (Qtr) 1.00 0.33
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 59.42 24.52
Interest Coverage Int. cover (Qtr) -23.94 -123.65
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.92 -6.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -43.84 -27.15
Dividend Growth (1y) % Div 1y % (Qtr) -69.23 -17.31
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.75 -33,818.48
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.17 -93.16
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.95 -2,162.53
EBT Growth (1y) % EBT 1y % (Qtr) 3.72 -2,013.71
EPS Growth (1y) % EPS 1y % (Qtr) 5.03 8.97
FCF Growth (1y) % FCF 1y % (Qtr) -33.19 -27.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.74 -10.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.10 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.50 0.19
Cash Ratio Cash Ratio (Qtr) 0.89 2.08
Current Ratio Curr Ratio (Qtr) 3.79 4.99
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.44
Interest Cover Ratio Int Coverage (Qtr) -23.94 -123.65
Times Interest Earned Times Interest Earned (Qtr) -23.94 -123.65
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.90 -5.38
EBIT Margin % EBIT Margin % (Qtr) 14.57 -12.49
EBT Margin % EBT Margin % (Qtr) 15.18 -14.33
Gross Margin % Gross Margin % (Qtr) 30.80 29.35
Net Profit Margin % Net Margin % (Qtr) 11.00 -16.23