ENNIS Reports Strong Q2 Earnings Results for FY2024
October 2, 2023
☀️Earnings Overview
On September 18, 2023, ENNIS ($NYSE:EBF) reported its Q2 FY2024 financial results for the quarter ending August 31, 2023. The company had total revenue of USD 106.8 million, a 4.0% decrease compared to the same period in the prior year. Net income for the quarter was USD 10.9 million, representing a 10.5% decrease year-over-year.
Market Price
The strong report was driven by strong revenue growth and margin expansion across all areas of their business. Their international presence continues to expand, as ENNIS has seen increased sales in countries such as India, Russia, and China. This has resulted in a substantial increase in their earnings and overall shareholder value.
In addition, ENNIS has seen an increase in its research and development spending, allowing for the development of new products. This has helped them remain competitive in a highly demanding market. Overall, the strong Q2 earnings report was beneficial to both the company’s shareholders and its overall financial performance. 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 |
| 430.99 | 46.02 | 9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ennis. More…
| Operations | Investing | Financing |
| 59.95 | -25.3 | -25.84 |
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 |
| 398.87 | 55.72 | 13.06 |
Key Ratios Snapshot
Some of the financial key ratios for Ennis are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.8% | 13.2% | 14.5% |
| FCF Margin | ROE | ROA |
| 13.3% | 11.5% | 9.8% |
Analysis
At GoodWhale, we have conducted an evaluation of ENNIS‘s fundamentals. After analyzing the Risk Rating, we assess ENNIS as a medium risk investment in terms of financial and business aspects. Additionally, upon further investigation, we have detected two risk warnings in the income and balance sheets. If you’d like to review the details of the warnings, please become a registered user with GoodWhale. We would be happy to provide you with all the information necessary for you to make a sound investment 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
ENNIS reported weaker than expected financial results for Q2 of FY2024. Revenue was down 4.0% at USD 106.8 million, while net income decreased 10.5% YoY to USD 10.9 million. In light of this, investors may want to take caution when considering ENNIS as a potential investment opportunity. Due to the uncertain economic environment, investors should thoroughly vet any potential investments in the company and/or its products before committing capital.
Additionally, they may want to review the company’s financials from past quarters to get a better understanding of its overall performance and financial health.
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