Ennis, Inc. (EBF, Financial) reported a decline in its first-quarter revenue, which fell to $92.7 million from $97.4 million compared to the same period last year. The company faced challenges due to competitive pricing pressures that impacted its sales volume. Despite these challenges, Ennis achieved a slight improvement in its gross profit margin, which increased by 20 basis points to 29.5% from the previous quarter's 29.3%, and rose by 110 basis points from the last year's margin of 28.4% in the same quarter.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a decrease, coming in at $16.5 million or 17.8% of sales for the current quarter. This compares to $18.2 million or 18.2% of sales in the previous quarter and $18.1 million or 18.6% of sales in the same quarter last year.
Ennis also completed the implementation of ERP systems across its new acquisitions, which contributed approximately $2.5 million to the quarterly revenues and $13.2 million yearly. The company maintains a robust financial position with $72.5 million in cash and short-term investments, remaining debt-free.
This fiscal year, Ennis returned $92 million to its shareholders through dividends, including a special dividend of $2.50 per share. The company's strong financial health positions it well for future operations and acquisitions without needing to incur debt. Ennis is committed to maintaining shareholder value through consistent profitability and regular quarterly dividends, while also preparing to seize larger acquisition opportunities with available credit facilities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Ennis Inc (EBF, Financial) is $25.00 with a high estimate of $25.00 and a low estimate of $25.00. The average target implies an upside of 33.40% from the current price of $18.74. More detailed estimate data can be found on the Ennis Inc (EBF) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Ennis Inc's (EBF, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ennis Inc (EBF, Financial) in one year is $21.18, suggesting a upside of 13.02% from the current price of $18.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ennis Inc (EBF) Summary page.
