Is Ennis, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for Ennis, Inc. has moved from fair to expensive, indicating that the stock is currently overvalued. The company exhibits a P/E ratio of 14, a Price to Book Value of 1.85, and an EV to EBITDA ratio of 7.18. In comparison to its peers, CompoSecure, Inc. has a higher P/E ratio of 18.16, while Deluxe Corp. stands out with a very attractive P/E of 7.11, suggesting that Ennis, Inc. is not competitively priced within its industry.
Given these metrics, Ennis, Inc. appears to be overvalued. The company's return on equity (ROE) is 13.32%, which is decent, but the overall valuation ratios do not support a favorable investment case at this price point. Additionally, Ennis, Inc. has underperformed against the S&P 500 over the past year, with a return of -13.28% compared to the index's 10.26%, further reinforcing the notion that the stock is not a compelling buy at its current valuation.