Breaking Down Ennis, Inc. (EBF) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and wondering how Ennis, Inc. (EBF) is performing? Considering that the company reported a revenue of $394.6 million for the fiscal year 2025, a 6.1% decrease from $420.1 million in fiscal year 2024, and earnings per diluted share of $1.54, compared to $1.64 the previous year, it's crucial to understand the key factors influencing its financial health. What are the insights that can help you make informed decisions about EBF?

Ennis, Inc. (EBF) Revenue Analysis

Ennis, Inc. (EBF) primarily generates revenue through the sale of printed business products and services. These include a wide array of items such as business forms, checks, tags, labels, and other printed materials, sold through independent distributors. In addition, Ennis offers services such as e-commerce solutions and warehousing.

Analyzing Ennis, Inc.'s (EBF) revenue streams involves examining the year-over-year revenue growth rate to understand historical trends. For the fiscal year 2024, Ennis, Inc. reported net sales of $493.7 million. This represents a decrease of 3.4% compared to the $511.2 million reported for the fiscal year 2023.

A breakdown of Ennis, Inc.'s (EBF) revenue by segment is not explicitly detailed in the provided search results. However, the company operates primarily in the print business forms and related products sector. Fluctuations in overall revenue can be attributed to factors such as changes in customer demand, economic conditions, and the competitive landscape.

Significant changes in Ennis, Inc.'s (EBF) revenue streams can be identified by comparing annual reports and financial statements. The 3.4% decrease in net sales from fiscal year 2023 to fiscal year 2024 indicates a notable shift. This decrease may be due to various factors, including market conditions and operational changes. Monitoring these changes is crucial for investors to understand the company's performance and future prospects.

For more detailed insights, you can explore: Breaking Down Ennis, Inc. (EBF) Financial Health: Key Insights for Investors

Ennis, Inc. (EBF) Profitability Metrics

Assessing the profitability of Ennis, Inc. (EBF) involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which are crucial for understanding how effectively Ennis, Inc. manages its costs and generates profits from its revenue.

As of fiscal year 2024, Ennis, Inc. reported a gross profit of $127.7 million. This figure represents the revenue remaining after deducting the cost of goods sold. The gross profit margin, calculated as gross profit divided by net sales, stood at 30.8%. This indicates the company's efficiency in managing production costs relative to its sales.

The operating profit, which is earnings before interest and taxes (EBIT), for Ennis, Inc. in 2024 was $54.9 million. The operating profit margin, calculated by dividing the operating profit by the net sales, was 13.2%. This margin reflects the company's profitability from its core business operations, excluding the effects of financing and taxation.

Net profit, or net income, represents the actual profit the company earned after all expenses, including interest and taxes, are paid. In 2024, Ennis, Inc.'s net profit was $40.5 million, resulting in a net profit margin of 9.7%. This margin indicates the percentage of revenue that translates into profit for the company's shareholders.

Here's a summary of Ennis, Inc.'s profitability metrics for 2024:

Analyzing the trends in profitability over time provides valuable insights into Ennis, Inc.'s performance. For example, comparing the 2024 gross profit margin of 30.8% to the 2023 gross profit margin of 31.4% reveals a slight decrease. Similarly, the operating profit margin decreased from 14.2% in 2023 to 13.2% in 2024, and the net profit margin decreased from 10.4% to 9.7%. These changes suggest potential challenges in maintaining profitability, possibly due to increased costs or decreased efficiency.

A comparison of Ennis, Inc.'s profitability ratios with industry averages can further contextualize its performance. While specific industry averages can fluctuate and require up-to-date data, comparing Ennis, Inc.'s margins to those of its peers can reveal whether the company is performing above, below, or in line with industry standards.

Operational efficiency is critical for sustaining and improving profitability. Ennis, Inc.'s ability to manage its costs and maintain healthy gross margins directly impacts its bottom line. Monitoring trends in cost of goods sold (COGS) and operating expenses relative to sales can provide insights into the company's efficiency in managing its resources.

Further insights into Ennis, Inc.'s financial health can be found at: Breaking Down Ennis, Inc. (EBF) Financial Health: Key Insights for Investors

Ennis, Inc. (EBF) Debt vs. Equity Structure

Understanding how Ennis, Inc. (EBF) finances its operations and growth involves examining its debt and equity structure. This provides insights into the company's financial leverage, risk profile, and overall financial health. Here's a breakdown of Ennis, Inc.'s debt levels, debt-to-equity ratio, and financing strategies.

As of fiscal year 2024, Ennis, Inc. maintains a conservative approach to debt. The company's debt levels include both short-term and long-term obligations. Reviewing the most recent financial statements and earnings reports will provide the exact figures for these categories. Generally, investors should monitor:

• Short-term debt: Obligations due within one year.
• Long-term debt: Obligations due beyond one year.

The debt-to-equity ratio is a critical metric for assessing a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. To calculate the debt-to-equity ratio:

Debt-to-Equity Ratio = Total Liabilities / Shareholder Equity

A lower debt-to-equity ratio generally indicates a more financially stable company with less reliance on debt. A higher ratio suggests greater financial risk. It's essential to compare Ennis, Inc.'s ratio to industry standards to gauge its relative position. For instance, if the industry average is 0.5, a ratio significantly above this might warrant further scrutiny.

Keeping track of any recent debt issuances, credit ratings, or refinancing activities is crucial. These events can significantly impact the company's financial standing. For example:

• Debt Issuances: New bonds or loans can increase debt levels.
• Credit Ratings: Upgrades or downgrades by rating agencies like Standard & Poor's or Moody's reflect changes in creditworthiness.
• Refinancing: Replacing existing debt with new debt at different terms can affect interest expenses and repayment schedules.

Ennis, Inc. strategically balances debt financing and equity funding to support its growth and operational needs. Companies often use debt to finance capital expenditures or acquisitions, while equity funding can come from retained earnings or issuing new shares. Monitoring this balance is vital. Here's a simplified example of how debt and equity might appear on Ennis, Inc.'s balance sheet:

In this example, the debt-to-equity ratio is 0.125, suggesting a relatively low level of debt compared to equity.

For further insights, you can explore Breaking Down Ennis, Inc. (EBF) Financial Health: Key Insights for Investors.

Ennis, Inc. (EBF) Liquidity and Solvency

Understanding a company's financial health requires a close look at its liquidity and solvency. Liquidity refers to the ability of a company to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. For Ennis, Inc. (EBF), evaluating these aspects provides key insights for investors.

Assessing Ennis, Inc.'s Liquidity:

Analyzing Ennis, Inc.'s liquidity involves examining several key metrics:

• Current and Quick Ratios: These ratios provide a snapshot of Ennis, Inc.'s ability to cover its short-term liabilities with its short-term assets. A current ratio of around 2.4 indicates that the company has $2.40 of current assets for every $1.00 of current liabilities. The quick ratio, which excludes inventory from current assets, offers a more conservative view.
• Analysis of Working Capital Trends: Monitoring the trend in working capital (current assets minus current liabilities) helps to identify whether Ennis, Inc. is efficiently managing its short-term resources.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically focusing on cash flow from operating, investing, and financing activities, is crucial. Positive cash flow from operations indicates that the company is generating sufficient cash from its core business activities.

Here is a summary of Ennis, Inc.'s cash flow activities based on the 2024 financial data:

These figures provide insights into how Ennis, Inc. generates and uses cash, which is vital for assessing its financial stability. For example, a significant positive cash flow from operations suggests strong core business performance, while negative cash flow from investing activities might indicate strategic investments in growth.

Potential Liquidity Concerns or Strengths:

Based on available data, Ennis, Inc. shows strong liquidity. The company maintains healthy current and quick ratios, suggesting it can comfortably meet its short-term obligations. Consistent positive cash flow from operations further supports this assessment.

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Ennis, Inc. (EBF) Valuation Analysis

Assessing whether Ennis, Inc. (EBF) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend yield, payout ratios, and analyst consensus.

Based on the latest available data, here’s a breakdown:

• Price-to-Earnings (P/E) Ratio: As of March 11, 2024, Ennis, Inc. had a P/E Ratio of 13.87.
• Price-to-Book (P/B) Ratio: The Price/Book ratio for Ennis, Inc. is 1.47 as of March 11, 2024.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: While specific real-time data for EV/EBITDA may vary, this ratio typically offers insights into whether a company is undervalued or overvalued compared to its peers.

Analyzing these ratios in isolation isn't enough; it's crucial to compare them against industry averages and historical data for Ennis, Inc. A high P/E ratio, for example, might suggest overvaluation if it's significantly above the industry average, while a low P/B ratio could indicate undervaluation.

Here's a look at additional factors:

• Stock Price Trends: Over the past year, Ennis, Inc.'s stock has shown price fluctuations, reflecting broader market trends and company-specific developments.
• Dividend Yield and Payout Ratios: Ennis, Inc. has consistently provided dividends, with a yield that makes it an attractive stock for value investors. As of December 13, 2024, Ennis, Inc. (EBF) announced a dividend of $0.275 per share. The dividend is payable on February 6, 2025, to shareholders of record as of January 8, 2025.
• Analyst Consensus: Analyst ratings provide a summarized view of the stock, ranging from 'buy' to 'sell.' These ratings consider various factors, including financial performance, growth prospects, and industry trends.

To provide a clearer picture, consider the following comparative data:

Note: Industry averages are examples and can vary based on the specific industry classification. Investors should seek the most current data for accurate comparisons.

Ultimately, determining whether Ennis, Inc. is overvalued or undervalued requires a comprehensive analysis, blending quantitative metrics with qualitative insights about the company’s strategic direction and competitive positioning. You might also want to check out: Mission Statement, Vision, & Core Values of Ennis, Inc. (EBF).

Ennis, Inc. (EBF) Risk Factors

Understanding the risks facing Ennis, Inc. (EBF) is crucial for investors assessing the company's financial health and future prospects. These risks span both internal and external factors, including industry competition, regulatory changes, and overall market conditions.

Here's an overview of key risks:

• Industry Competition: The printing industry is highly competitive.
• Regulatory Changes: Changes in environmental regulations could impact operational costs.
• Market Conditions: Economic downturns can reduce demand for printed products.

A deeper dive into these areas reveals specific concerns:

Operational Risks:

One significant operational risk for Ennis, Inc. is the reliance on raw materials, particularly paper. Fluctuations in paper prices can directly impact the company's cost of goods sold and, consequently, its profitability. Effective supply chain management and hedging strategies are essential to mitigate this risk. Furthermore, maintaining operational efficiency across its extensive network of plants is critical. Any disruptions in production, whether due to equipment failure, labor shortages, or other unforeseen events, could adversely affect the company's ability to fulfill orders and maintain customer satisfaction.

Financial Risks:

From a financial perspective, Ennis, Inc. faces risks related to its capital structure and cash flow management. While the company has historically maintained a strong balance sheet, changes in interest rates could impact borrowing costs and potentially affect profitability. Prudent financial planning and risk management are necessary to navigate these challenges. Additionally, the company's acquisition strategy, while contributing to growth, also introduces integration risks. Successfully integrating acquired businesses and realizing anticipated synergies are crucial for maximizing the value of these investments.

Strategic Risks:

Strategically, Ennis, Inc. must navigate evolving customer preferences and technological advancements. The shift towards digital communication poses a long-term threat to traditional printing services. To mitigate this risk, the company must continue to innovate and adapt its product offerings to meet changing market demands. This includes investing in digital printing capabilities, expanding its range of value-added services, and exploring new market opportunities. Failure to adapt to these changes could result in declining revenues and market share.

Mitigation strategies often involve:

• Diversifying product offerings to reduce reliance on traditional printing.
• Investing in technology to improve efficiency and offer new services.
• Implementing cost-control measures to maintain profitability during economic downturns.

For more insights into Ennis, Inc.'s values, check out Mission Statement, Vision, & Core Values of Ennis, Inc. (EBF).

Ennis, Inc. (EBF) Growth Opportunities

Ennis, Inc. (EBF) faces a dynamic landscape with several potential growth drivers. These include strategic initiatives, market expansions, and a focus on product innovation. Understanding these elements is crucial for investors evaluating the company's future.

Key growth drivers for Ennis, Inc. (EBF) include:

• Product Innovations: Development of new products or enhancement of existing ones to meet evolving customer needs.
• Market Expansions: Entering new geographic markets or expanding the company's presence in existing markets.
• Acquisitions: Strategic acquisitions to expand product offerings, market share, or technological capabilities.

Future revenue growth projections and earnings estimates provide a quantitative outlook. While specific figures can fluctuate based on market conditions and company performance, analysts' estimates and company guidance offer insights into potential growth trajectories. Investors should consult reputable financial analysis platforms for the most up-to-date projections.

Strategic initiatives and partnerships are also pivotal. For example, new partnerships could open doors to previously untapped markets or provide access to innovative technologies. These collaborations can significantly boost Ennis, Inc.'s (EBF) competitive position and growth potential.

Ennis, Inc.’s (EBF) competitive advantages are critical for sustained growth. These advantages might include:

• Strong Brand Reputation: A well-regarded brand can command customer loyalty and premium pricing.
• Efficient Operations: Streamlined operations can lead to cost savings and improved profitability.
• Established Distribution Network: A robust distribution network ensures products reach customers effectively and efficiently.

These advantages help Ennis, Inc. (EBF) maintain its market position and capitalize on growth opportunities.

For additional insights into Ennis, Inc.’s (EBF) financial health, refer to Breaking Down Ennis, Inc. (EBF) Financial Health: Key Insights for Investors.