Ennis Inc (EBF)EBF

Ennis Inc. (NYSE: EBF) Overview:

Company Profile:

History and Background:

• Founded in 1908 as the Ennis Tag & Salesbook Company.
• Became a publicly-traded company in 1962.
• Merged with American Business Forms in 1985.
• Re-branded as Ennis Inc. in 2014.

Core Business Areas:

• Business Forms & Label Printing: Ennis is a leading provider of printed business forms, labels, and tags for a variety of industries, including healthcare, hospitality, and manufacturing.
• Promotional Products: Ennis offers a wide range of promotional products, such as pens, mugs, and USB drives, to help businesses promote their brand and generate leads.
• Envelopes and Packaging: Ennis produces envelopes and other packaging solutions for e-commerce, retail, and other industries.
• Digital Solutions: Ennis provides digital marketing and e-commerce solutions to help businesses reach their target audience and drive online sales.

Leadership Team and Corporate Structure:

• CEO: Kevin T. Quinn
• President & Chief Operating Officer: Jeffrey M. Kontowicz
• Executive Vice President & Chief Financial Officer: Kenneth M. Barksdale
• Ennis Inc. operates under a decentralized structure with multiple business units serving distinct market segments.

Top Products and Market Share:

Top Products:

• Business Forms: Checks, invoices, purchase orders, statement forms, and other custom printed forms.
• Labels & Tags: Barcode labels, product labels, shipping labels, and custom tags.
• Promotional Products: Pens, mugs, USB drives, t-shirts, and other branded merchandise.
• Envelopes: Commercial envelopes, security envelopes, and custom printed envelopes.

Market Share:

• Business Forms: Estimated 25% share of the US market.
• Labels & Tags: Market share data unavailable.
• Promotional Products: Market share data unavailable.
• Envelopes: Market share data unavailable.

Product Performance and Market Reception:

• Ennis's Business Forms and Label & Tag products are well-regarded in the industry for their quality and reliability.
• The company's Promotional Products and Envelopes businesses face strong competition from other providers.

Total Addressable Market:

Business Forms & Label Printing: $5 billion (US) Promotional Products: $25 billion (global) Envelopes and Packaging: $50 billion (US) Digital Solutions: $100 billion (global)

Financial Performance:

Revenue:

• 2022: $1.23 billion
• 2021: $1.25 billion
• 2020: $1.18 billion

Net Income:

• 2022: $52.7 million
• 2021: $53.4 million
• 2020: $47.9 million

Profit Margins:

• Gross Profit Margin: 20.8%
• Operating Profit Margin: 10.3%
• Net Profit Margin: 4.3%

Earnings per Share (EPS):

• 2022: $2.64
• 2021: $2.84
• 2020: $2.40

Financial Performance Comparison:

• Ennis has experienced relatively flat revenue growth in recent years.
• Profit margins have remained stable.
• EPS has shown slight growth.

Cash Flow and Balance Sheet:

• Ennis has a strong cash flow position.
• The company has a relatively low debt-to-equity ratio.

Dividends and Shareholder Returns:

Dividend History:

• Ennis has a history of paying dividends consistently.
• The current dividend yield is approximately 1.3%.
• The payout ratio is approximately 35%.

Shareholder Returns:

• Over the past year, Ennis stock has returned approximately 10%.
• Over the past 5 years, Ennis stock has returned approximately 50%.
• Over the past 10 years, Ennis stock has returned approximately 150%.

Growth Trajectory:

Historical Growth:

• Ennis has experienced modest revenue growth in recent years.
• Profit margins have remained relatively stable.
• The company has invested in growth initiatives, including acquisitions and new product development.

Future Growth Projections:

• Industry analysts expect Ennis to experience mid-single digit revenue growth in the coming years.
• Profit margins are expected to remain stable.
• The company's growth initiatives are expected to drive shareholder value in the long term.

Market Dynamics:

Industry Trends:

• The Business Forms and Label & Tag Printing industries are mature and have experienced slow growth in recent years.
• The Promotional Products industry is highly competitive and fragmented.
• The Envelopes and Packaging industry is growing steadily, driven by e-commerce growth.
• The Digital Solutions industry is growing rapidly, driven by the increasing adoption of digital marketing and e-commerce.

Competitive Landscape:

Key Competitors:

• Business Forms & Label Printing: RR Donnelley (RRD), Cenveo (CNVO), RR Donnelley Presentation Solutions (RPS);