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 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 38.67%. The most interesting components of our discounted cash flow analysis for Ennis Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 2,646.67 -- which is good for besting 99.53% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than merely 12.86% 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 45.92% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Ennis Inc? See ENR, KBR, LHX, CODI, and CR.
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 […]