Ennis, Inc. (EBF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Warner Music Group Corp.

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Ennis, Inc.

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Professional Diversity Network, Inc.

Leafly Holdings, Inc.

Travelzoo Inc.

ARC Document Solutions, Inc.

LiveOne, Inc.

CompoSecure, Inc.

Why is Ennis, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.51% and Operating profit at 3.31% over the last 5 years

Negative results in May 25

OPERATING CASH FLOW(Y) Lowest at USD 50.72 MM
ROCE(HY) Lowest at 12%
CASH AND EQV(HY) Lowest at USD 105.1 MM

With ROE of 13.32%, it has a expensive valuation with a 1.85 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -14.89%, its profits have fallen by -5.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.89% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ennis, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ennis, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ennis, Inc.

9.89%

-0.53

23.54%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.74%

EBIT Growth (5y)

7.52%

EBIT to Interest (avg)

51.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.23

Tax Ratio

27.47%

Dividend Payout Ratio

65.04%

Pledged Shares

Institutional Holding

94.49%

ROCE (avg)

21.34%

ROE (avg)

11.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.06

EV to EBIT

11.39

EV to EBITDA

8.63

EV to Capital Employed

2.16

EV to Sales

1.54

PEG Ratio

Dividend Yield

4.13%

ROCE (Latest)

18.94%

ROE (Latest)

12.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

ROCE(HY)

Highest at 13.96%

RAW MATERIAL COST(Y)

Fallen by 1.16% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 10.02 times

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 52.72 MM

CASH AND EQV(HY)

Lowest at USD 65.85 MM

PRE-TAX PROFIT(Q)

Lowest at USD 12 MM

NET PROFIT(Q)

Lowest at USD 8.85 MM

Here's what is working for Ennis, Inc.

Debtors Turnover Ratio

Highest at 10.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.16% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 4.34 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Ennis, Inc.

Operating Cash Flow

Lowest at USD 52.72 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Lowest at USD 12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 8.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 65.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents