Is Ennis, Inc. overvalued or undervalued?

As of 17 July 2025, the valuation grade for Ennis, Inc. has moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 14, which is relatively low compared to its peers, such as Quad/Graphics, Inc. at 6.18 and ARC Document Solutions, Inc. at 20.08. Additionally, Ennis has an EV to EBITDA ratio of 7.18, which further supports its attractive valuation compared to the industry.
In terms of performance, Ennis, Inc. has faced challenges, with a year-to-date return of -13.23% and a one-year return of -23.88%, significantly underperforming the S&P 500, which returned 12.22% and 17.14% respectively during the same periods. However, its strong dividend yield of 13.18% and a robust ROCE of 22.22% suggest that the company has solid fundamentals despite its recent stock performance.