EBF - Ennis: Dividend Growth And Mentioned By Bank of America

2024-04-25 10:59:44 ET

Summary

• Ennis, Inc. did not report significant quarterly net sales growth, but the company trades at a low valuation and offers a high dividend yield.
• The company has a healthy balance sheet with no debt and recently acquired new targets, which could lead to significant net income growth in the future.
• The implementation of new ERP systems and the sale of equipment could generate new demand for Ennis stock. Overall, the stock appears undervalued.

Ennis, Inc. ( EBF ) did not report significant quarterly net sales growth. However, the company currently trades at only close to 5.2x TTM EBITDA , and reports 5.18% dividend yield with dividend growth. Without debt and having a healthy balance sheet, EBF recently acquired a lot of new targets, which may bring significant net income growth in the coming years. In addition, the new ERP systems implemented and new cash from recent sale of equipment could bring new demand for the stock. In sum, even considering risks from failed acquisitions, EBF stock appears too cheap at its current price mark.

Ennis

Ennis maintains its activity through a long list of subsidiaries, and is considered to be one of the largest suppliers of commercial forms and certified envelopes in the United States....

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