| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.60 | 47 |
| Intrinsic value (DCF) | 7.82 | -60 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 3.70 | -81 |
Ennis, Inc. (NYSE: EBF) is a leading manufacturer and distributor of business forms, labels, tags, envelopes, and other business products in the U.S. With a history dating back to 1909, the company operates under a diversified portfolio of well-known brands, including Ennis, Royal Business Forms, and Ennis Tag & Label. Ennis serves a broad customer base through independent distributors, offering customized printing solutions, financial documents, and point-of-purchase advertising. The company’s strong brand recognition, extensive product portfolio, and efficient distribution network position it as a key player in the business equipment and supplies industry. Ennis’s focus on high-performance labels, security documents, and integrated print solutions makes it a reliable partner for businesses requiring specialized printing and document management. Headquartered in Midlothian, Texas, Ennis continues to leverage its long-standing industry expertise to maintain steady growth in a competitive market.
Ennis, Inc. presents a stable investment opportunity with a strong dividend yield (currently ~3.5%) and a conservative financial profile, evidenced by low debt levels ($9.5M) and solid cash reserves ($67M). The company’s beta of 0.472 suggests lower volatility compared to the broader market, making it attractive for risk-averse investors. However, its revenue growth has been modest ($394.6M in FY 2024), reflecting challenges in a mature industry. While Ennis benefits from a diversified product line and efficient operations, its reliance on traditional business forms exposes it to digital substitution risks. Investors should weigh its steady cash flow ($65.9M operating cash flow) against limited high-growth prospects.
Ennis, Inc. holds a competitive advantage through its diversified brand portfolio and long-standing relationships with independent distributors, ensuring broad market reach. Unlike pure-play digital competitors, Ennis specializes in high-touch, customized print solutions, particularly in secure financial documents and performance labels, where digital alternatives are less viable. The company’s vertical integration—from design to fulfillment—enhances cost efficiency and quality control. However, its traditional focus on printed forms leaves it vulnerable to industry-wide declines in paper-based products. Competitors with stronger digital offerings (e.g., Deluxe Corporation) or scale advantages (e.g., CCL Industries) pose challenges. Ennis mitigates these risks through niche specialization (e.g., tags/labels) and acquisitions (e.g., Adams McClure for kitting services). Its low debt and consistent profitability provide resilience, but innovation in digital hybrid solutions will be critical to long-term competitiveness.