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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ennis Inc. To summarize, we found that Ennis Inc ranked in the 55th 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 2,646.67 -- which is good for besting 99.79% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately merely 13.21% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 45.65% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as EBF, try AJRD, VMI, WNC, WSO, and BAH.
For the second consecutive quarter, Ennis, Inc. (EBF) recently reported quarterly results that fell entirely within the time of the Covid-19 pandemic. Like first quarter 2021 results, Q221 (ended 8/30/20) revenue and profitability were down sharply in the current economic environment. However, the company was able to curtail expenses to...
Anomalous Investor on Seeking Alpha | September 25, 2020
MIDLOTHIAN, Texas--(BUSINESS WIRE)--Ennis, Inc. (the “Company"), (NYSE: EBF), today reported financial results for the three and six months ended August 31, 2020. Highlights include: Revenues decreased 20.4% for the comparative quarter and 2.7% sequentially. Earnings per diluted share decreased $0.12 per share for the comparative quarter, but increased $0.09 per diluted share, or 56% over the sequential quarter. Our gross profit margin decreased on a comparative quarter basis from 29.8% to 29.0
Because its fiscal year ends in February, Ennis Inc. (EBF) was one of the first companies to report quarterly results that fall entirely within the time of the COVID-19 pandemic. Before the market opened on June 22nd, Ennis reported first quarter results for the three months ended May 31. As...
Anomalous Investor on Seeking Alpha | July 9, 2020
In this article we will check out the progression of hedge fund sentiment towards Ennis, Inc. (NYSE:EBF) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 […]