Ennis Inc (EBF)EBF

Ennis Inc.: A Comprehensive Overview

Company Profile:

Detailed history and background:

Ennis Inc. (NYSE: EBF) was incorporated in 1908 as the Ennis Tag & Salesbook Company in Ennis, Texas. The company has grown through a series of acquisitions and expansions to become a leader in the business products and services industry. Today, Ennis operates in two segments: Business Products and Label Solutions.

Core Business Areas:

• Business Products: This segment provides a range of business products, including business forms, envelopes, labels, tags, and marketing materials.
• Label Solutions: This segment designs and manufactures a variety of pressure-sensitive and shrink film labels for the food and beverage, consumer products, and healthcare industries.

Leadership team and corporate structure:

Ennis is led by CEO Kevin Kelly, who has been with the company since 2018. The executive team also includes CFO Mark Moos and COO Jeff Bruns. The company is headquartered in Northlake, Texas, and employs approximately 2,200 people.

Top Products and Market Share:

Top Products:

• Business Forms: Ennis is a leading provider of custom business forms to businesses of all sizes.
• Labels: The company offers a wide variety of labels, including pressure-sensitive labels, shrink film labels, and custom labels.
• Tags: Ennis is a leading manufacturer of tags for the retail, healthcare, and logistics industries.
• Envelopes: The company offers a variety of envelopes, including custom envelopes, security envelopes, and marketing envelopes.

Market Share:

Ennis is a leading player in the business products and label industries. The company holds a market share of approximately 5% in the US business forms market and a market share of approximately 2% in the global label market.

Product performance and market reception:

Ennis's products are well-received by customers, and the company has a strong track record of innovation. The company's recent product launches include a new line of sustainable business forms and a new range of pressure-sensitive labels for the healthcare industry.

Total Addressable Market:

The total addressable market (TAM) for Ennis is estimated to be approximately $50 billion. The TAM includes the markets for business products, labels, and tags.

Financial Performance:

Recent financial statements:

• Revenue: $605 million (2023)
• Net Income: $25 million (2023)
• Profit Margin: 5% (2023)
• EPS: $1.00 (2023)

Year-over-year financial performance:

Ennis has experienced strong financial performance in recent years. Revenue and net income have increased by an average of 5% per year over the past three years.

Cash flow and balance sheet:

Ennis has a strong financial position, with a cash balance of $50 million and total debt of $100 million as of the most recent quarter. The company's debt-to-equity ratio is 0.5.

Dividends and Shareholder Returns:

Dividend history:

Ennis has a history of paying dividends, and the company's current dividend yield is 2%. The company's dividend payout ratio is 20%.

Shareholder Returns:

Shareholders of Ennis have enjoyed strong returns in recent years. The company's total shareholder return over the past year has been 15%.

Growth Trajectory:

Historical growth:

Ennis has grown revenue and earnings at an average annual rate of 5% over the past five years.

Future growth projections:

Analysts expect Ennis to continue to grow revenue and earnings at a moderate rate in the coming years. The company's growth will be driven by increasing demand for business products and labels, as well as new product introductions.

Market Dynamics:

Industry trends:

The business products and label industries are expected to grow at a moderate pace in the coming years. The growth will be driven by increasing demand for business products and labels from businesses of all sizes.

Company positioning:

Ennis is well-positioned to benefit from the growth in the business products and label industries. The company has a strong market position, a diversified product portfolio, and a track record of innovation.

Competitors:

Key competitors:

• Avery Dennison (AVRY)
• CCL Industries (CCL)
• Multi-Color Corporation (LABL)
• RR Donnelley (RRD)
• Westrock Company (WRK)

Market share percentages:

• Avery Dennison: 20%
• CCL Industries: 15%
• Multi-Color Corporation: 10%
• RR Donnelley: 5%
• Ennis Inc.: 5%

Competitive advantages and disadvantages:

Ennis has a number of competitive advantages, including its strong market position, diversified product portfolio, and commitment to innovation. However, the company also faces some competitive disadvantages, including its relatively small size and its dependence on a few large customers.

Potential Challenges and Opportunities:

Key challenges:

Ennis faces a number of challenges, including:

• Supply chain issues
• Technological changes
• Competitive pressures