Ennis Inc (EBF)

History and Background

Ennis, Inc. was founded in 1909 as Ennis Tag & Salesbook Co. Over the years, it has grown through acquisitions and organic expansion to become a major player in the wholesale printed business forms and other business products. They are headquartered in Midlothian, Texas.

Core Business Areas

• Print Segment: Manufactures and sells a wide range of business forms, pressure-sensitive products, tags, labels, envelopes, and other business-related products. This segment includes snap sets, continuous forms, laser cut sheets, and integrated forms.
• Specialty Products Segment: Offers presentation folders, plastic products, direct mail, and other specialty items.

Leadership and Structure

Ennis, Inc. has a traditional leadership structure with a board of directors and a management team led by the CEO. The structure includes departments for sales, marketing, operations, finance, and technology.

Key Offerings

• Business Forms: Includes continuous forms, snap sets, and other traditional business forms. Market share data is difficult to pinpoint exactly for Ennis specifically, but the overall business forms market is fragmented with many small and medium-sized players. Competitors include Taylor Corporation, Cenveo, and other regional printers. Overall market share of all competitors is dependent on the geography of the markets in which they operate. Revenue data from this product is not broken out separately. Ennis operates in a highly fragmented market in North America where they participate in select geographies and markets.
• Pressure Sensitive Products: Includes labels and integrated forms. The pressure-sensitive label market is competitive. Competitors include CCL Industries, Multi-Color Corporation, and Avery Dennison. Revenue data from this product is not broken out separately. Ennis operates in a highly fragmented market in North America where they participate in select geographies and markets.
• Envelopes: Includes a wide range of envelopes for businesses. Competitors are similar to business forms, as the market for this is highly fragmented and competitive, making specific market share hard to pinpoint. Revenue data from this product is not broken out separately. Ennis operates in a highly fragmented market in North America where they participate in select geographies and markets.

Industry Overview

The print industry is evolving with a shift towards digital solutions, but there's still demand for traditional business forms and specialty printing. Consolidation within the industry is also occurring.

Positioning

Ennis, Inc. positions itself as a wholesale supplier to distributors, providing a broad range of printed products. Their competitive advantage lies in their diversified product portfolio, established distribution network, and efficient operations. However, digital competitors have been eating at their core business.

Total Addressable Market (TAM)

The TAM for printed business products is estimated to be several billion dollars annually. Ennis Inc. is positioned to capture a portion of this TAM through its established distribution network and diverse product offerings. However, the increasing shift towards digital solutions poses a challenge to maintaining or expanding its market share.

Key Competitors

• TC
• CVO
• RRCM
• DLPN

Competitive Landscape

Ennis is a strong player in the wholesale printed business forms market, benefiting from a diversified product portfolio, established distribution network, and efficient operations. However, the company faces challenges from the declining demand for traditional print products and increasing competition from digital solutions. Competitors in the market include larger companies like Taylor Corporation and Cenveo, as well as smaller regional printers. To maintain its competitive position, Ennis needs to continue to focus on operational efficiencies, product innovation, and strategic acquisitions.

Atlas Tag & Label

• Year: 2022
• Acquisition Price (USD millions): 18.5
• Strategic Rationale: Expanded Ennis's product offerings in the tag and label market.

Independent Printing

• Year: 2024
• Acquisition Price (USD millions): 27.2
• Strategic Rationale: Expanded Ennis's print operations and market reach.

Historical Growth: Growth has been slow but steady through acquisitions and organic initiatives.

Future Projections: Analysts expect modest growth in the coming years.

Recent Initiatives: Recent initiatives include acquisitions of complementary businesses and investment in operational efficiencies.

Ennis, Inc. is a solid company with a long history in the printing industry, demonstrated by its consistent dividends and focus on cost management. However, they face challenges due to the decline in demand for traditional print products. They are executing on the long term however must begin implementing digital solutions and technologies to maintain its market position and capitalize on new growth opportunities, or it may begin to decline significantly over the long term.. Recent initiatives like acquisitions are helping to expand its product offerings but must begin investing in other product areas to stay competitive. It needs to carefully manage threats like rising costs and economic downturns.

Data Sources:

• Company SEC Filings (10-K, 10-Q)
• Company Website
• Industry Reports
• Analyst Estimates

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Market conditions and company performance are subject to change. Consult with a qualified financial advisor before making any investment decisions.