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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Warner Music Group Corp.

Ennis, Inc.

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LiveOne, 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.

-1.83%

-0.53

23.54%

S&P 500

13.99%

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)

-1.51%

EBIT Growth (5y)

3.31%

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

89.43%

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

1.85

EV to EBIT

9.46

EV to EBITDA

7.18

EV to Capital Employed

2.10

EV to Sales

1.24

PEG Ratio

Dividend Yield

13.18%

ROCE (Latest)

22.22%

ROE (Latest)

13.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

1What is working for the Company

OPERATING PROFIT MARGIN(Q)

Highest at 17.97 %

-10What is not working for the Company

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

DEBT-EQUITY RATIO (HY)

Highest at -7.34 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.83 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.5 times

Here's what is working for Ennis, Inc.

Operating Profit Margin

Highest at 17.97 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

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

Operating Cash Flow

Lowest at USD 50.72 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 105.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -7.34 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 8.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio