Ennis, Inc. produces and sells business forms and other business products; and activewear in the United States. The company operates in two segments, Print and Apparel. The company was founded in 1909 and is based in Midlothian, Texas.
EBF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for EBF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Ennis Inc ranked in the 64th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for EBF, they are:
Interest coverage, a measure of earnings relative to interest payments, is 85.57; that's higher than 96.58% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than only 11.45% of the free cash flow producing stocks we're observing.
EBF's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 51.7% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KSU, OBCI, MHH, GENH, and KFY can be thought of as valuation peers to EBF, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Keith S. Walters, Chairman, President and Chief Executive Officer of Ennis, Inc. (NYSE: EBF), a manufacturer of business forms and other business products headquartered in Midlothian, Texas, announced today that the Board of Directors has declared a quarterly cash dividend of twenty-two and one-half cents ($0.225) per share on its common stock. The dividend is payable May 4, 2020 to shareholders of record on April 13, 2020.