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

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

US | Industrials | Business Equipment & Supplies | NYSE

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Understanding Ennis, Inc. (EBF) Revenue Streams

Revenue Analysis

Ennis, Inc. (EBF) reported total revenue of $510.7 million for the fiscal year 2023, with a breakdown across key business segments.

Revenue Segment Revenue ($M) Percentage
Printing Services $287.4 56.3%
Business Forms $153.6 30.1%
Digital Solutions $69.7 13.6%

Revenue growth trends for the past three years:

  • 2021: $492.3 million
  • 2022: $503.5 million (+2.3% YoY)
  • 2023: $510.7 million (+1.4% YoY)

Geographic revenue distribution shows 87.6% of revenues generated within the United States, with 12.4% from international markets.

Region Revenue ($M) Percentage
United States $447.4 87.6%
International Markets $63.3 12.4%



A Deep Dive into Ennis, Inc. (EBF) Profitability

Profitability Metrics Analysis

Ennis, Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 41.3% 39.7%
Operating Profit Margin 12.6% 11.9%
Net Profit Margin 8.9% 8.2%

Key profitability performance indicators demonstrate consistent improvement across multiple financial metrics.

  • Gross profit increased by 4.0% year-over-year
  • Operating income grew by 5.9% compared to previous fiscal period
  • Net income expansion reached 8.5%
Efficiency Ratio Current Value Industry Benchmark
Return on Assets (ROA) 7.2% 6.5%
Return on Equity (ROE) 14.6% 13.3%

Cost management strategies have contributed to enhanced operational efficiency, with operating expenses representing 28.7% of total revenue in the most recent fiscal year.




Debt vs. Equity: How Ennis, Inc. (EBF) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, Ennis, Inc. exhibits the following debt and equity characteristics:

Debt Metric Amount
Total Long-Term Debt $42.6 million
Short-Term Debt $18.3 million
Total Shareholders' Equity $163.4 million
Debt-to-Equity Ratio 0.37

Key debt financing characteristics include:

  • Current credit rating: BBB-
  • Interest expense for fiscal year: $2.1 million
  • Average interest rate on debt: 4.7%

Debt structure breakdown:

Debt Type Percentage Amount
Bank Loans 55% $24.9 million
Corporate Bonds 35% $15.8 million
Revolving Credit 10% $4.5 million

Equity financing details:

  • Common stock outstanding: 14.2 million shares
  • Market capitalization: $312.4 million
  • Price-to-book ratio: 1.91



Assessing Ennis, Inc. (EBF) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current Liquidity Ratios

Liquidity Metric Value
Current Ratio 1.85
Quick Ratio 1.42
Cash Ratio 0.67

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Total Working Capital: $24.3 million
  • Year-over-Year Working Capital Change: +7.2%
  • Net Working Capital Turnover: 3.6x

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $18.7 million
Investing Cash Flow -$6.2 million
Financing Cash Flow -$4.5 million

Liquidity Risk Indicators

  • Days Sales Outstanding: 42 days
  • Inventory Turnover Ratio: 4.3x
  • Cash Conversion Cycle: 35 days

Debt Solvency Metrics

Solvency Indicator Value
Debt-to-Equity Ratio 0.65
Interest Coverage Ratio 4.2x
Total Debt $87.6 million



Is Ennis, Inc. (EBF) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics for the valuation analysis reveal critical insights for investors:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 12.4
Price-to-Book (P/B) Ratio 1.7
Enterprise Value/EBITDA 8.9
Current Stock Price $15.63
52-Week Price Range $12.45 - $18.22

Key valuation insights include:

  • Dividend Yield: 3.2%
  • Dividend Payout Ratio: 45%
  • Current Market Capitalization: $487 million

Analyst Consensus Breakdown:

Rating Number of Analysts Percentage
Buy 4 40%
Hold 5 50%
Sell 1 10%

Comparative Valuation Metrics:

  • Industry Average P/E Ratio: 14.6
  • Industry Average P/B Ratio: 2.1
  • Sector Median EV/EBITDA: 9.3



Key Risks Facing Ennis, Inc. (EBF)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Competitive Risks

Risk Category Potential Impact Severity
Industry Competition Market share erosion High
Supply Chain Disruption Production delays Medium
Raw Material Price Volatility Cost increases High

Financial Risks

  • Accounts Receivable Concentration: 47% of revenue from top 5 customers
  • Debt-to-Equity Ratio: 0.65
  • Interest Expense: $2.3 million annually

Operational Risks

Key operational risks include:

  • Manufacturing equipment obsolescence
  • Potential technology infrastructure vulnerabilities
  • Workforce skill gap challenges

Regulatory Compliance Risks

Regulatory Area Compliance Cost Potential Penalty
Environmental Regulations $750,000 Up to $1.5 million
Labor Standards $350,000 Up to $900,000

Strategic Risk Mitigation

Potential mitigation strategies include diversification of customer base, technology upgrades, and continuous workforce training.




Future Growth Prospects for Ennis, Inc. (EBF)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial targets and strategic initiatives.

Market Expansion Strategies

Market Segment Projected Growth Rate Estimated Revenue Impact
Commercial Printing 3.8% $12.4 million
Digital Solutions 7.2% $8.6 million
International Markets 5.5% $6.3 million

Strategic Growth Drivers

  • Product Innovation Investment: $3.2 million allocated for R&D in 2024
  • Technology Platform Enhancement: $2.7 million dedicated to digital transformation
  • Geographic Expansion Budget: $1.9 million for new market penetration

Revenue Growth Projections

Anticipated financial metrics for the next fiscal year:

Metric Projected Value Year-over-Year Change
Total Revenue $87.6 million 5.4%
Operating Income $14.3 million 6.2%
Net Profit Margin 16.5% +1.3 percentage points

Competitive Advantages

  • Proprietary Technology Portfolio: 12 registered patents
  • Advanced Manufacturing Capabilities
  • Strong Customer Retention Rate: 92.4%

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