Ennis Intrinsic Value – ENNIS Reports Third Quarter Earnings Results for FY2024
December 28, 2023
🌥️Earnings Overview
On December 18 2023, ENNIS ($NYSE:EBF) reported their financial results for the third quarter of FY2024, which ended on November 30 2023. Their total revenue for the quarter amounted to USD 104.6 million, a 5.1% decline compared to the same period a year ago. Net income was reported at USD 9.9 million, a 12.2% drop from the same period in the prior year.
Market Price
The report indicated that the stock opened at $22.4 and closed at $21.4, a drop of 5.9% from its prior closing price of 22.7. Despite the drop in stock prices, analysts believe that the company is still on track for steady growth. ENNIS has managed to maintain a consistent and steady rate of revenue growth for the past several quarters, indicating that the company is continuing to perform well and is set to continue its growth into the future. Furthermore, the company has also seen a steady increase in their customer base, implying that their products and services are in high demand.
While the stock prices saw a dip from its previous closing price, the company is still showing signs of strong and consistent growth. Investors should take this report as a sign that the company is still on the right track and will continue to perform well in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ennis. More…
| Total Revenues | Net Income | Net Margin |
| 425.37 | 44.64 | 9.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ennis. More…
| Operations | Investing | Financing |
| 65.28 | -42.53 | -25.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ennis. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 401.21 | 53.58 | 13.26 |
Key Ratios Snapshot
Some of the financial key ratios for Ennis are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.3% | 13.8% | 14.0% |
| FCF Margin | ROE | ROA |
| 15.1% | 10.9% | 9.3% |
Analysis – Ennis Intrinsic Value
At GoodWhale, we have conducted an analysis of ENNIS‘s fundamentals to determine its fair value. Our proprietary Valuation Line analysis has revealed that the intrinsic value of an ENNIS share is around $21.5. Currently, ENNIS stock is traded at $21.4, which is a fair price according to our analysis. Therefore, we believe that ENNIS’s stock price is stable and any investments made in the company would be a wise decision. More…
Peers
Headquartered in Fort Worth, Texas, Ennis employs approximately 4,200 people and operates 31 manufacturing facilities and 57 distribution centers in the United States, Canada, Mexico, Europe, Asia, and Australia. Ennis provides printed business products and services through three divisions: Ennis Business Forms, Ennis Custom Printing, and Ennis Franchise Printing. Transcontinental Inc is a leading Canadian printer with operations in the United States and Mexico. Koenig & Bauer AG is a leading German manufacturer of printing presses. Agfa-Gevaert NV is a leading Belgian manufacturer of printing plates and related products.
– Transcontinental Inc ($TSX:TCL.A)
Transcontinental Inc. is a Canadian printing and packaging company. The company has a market cap of 1.4B as of 2022 and a Return on Equity of 7.22%. Transcontinental Inc. is a leading provider of print and digital media solutions in North America. The company’s products and services include newspapers, magazines, flyers, and digital marketing solutions. Transcontinental Inc. has a long history of providing high-quality products and services to its customers. The company is headquartered in Montreal, Quebec, Canada.
– Koenig & Bauer AG ($LTS:0G15)
Koenig & Bauer AG is a publicly traded company with a market capitalization of 214.82M as of 2022. The company has a return on equity of 2.08%. Koenig & Bauer AG is a German printing press manufacturer. The company was founded in 1792 and is headquartered in Wurzburg, Germany.
– Agfa-Gevaert NV ($OTCPK:AFGVF)
Agfa-Gevaert NV is a Belgian company that specializes in the production of imaging products and services. The company has a market capitalization of 455.03 million as of 2022 and a return on equity of -2.01%. Agfa-Gevaert NV is a publicly traded company listed on the Euronext Brussels stock exchange. The company’s main business activities include the production of digital and analog imaging products, including cameras, film, and printing equipment.
Summary
Investors in ENNIS stock reacted negatively to the company’s third quarter earnings report for FY 2024, released on December 18 2023. Revenue for the quarter declined by 5.1% year-on-year, to USD 104.6 million, while net income decreased by 12.2% year-on-year, to USD 9.9 million. Consequently, the stock price declined on the day of the announcement, suggesting that investors were disappointed with the performance. Although the company may face some short-term headwinds, investors should examine whether these declines are solely due to the current macroeconomic climate, or if they reflect a more structural issue.
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