Ennis Inc. Common Stock (EBF)

FairStock Score: 70/100 — STEADY

Key Financials

Strengths

• Generates $35 million in annual free cash flow (6.7% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 14.0% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 7.9 confirms minimal bankruptcy risk and strong solvency

AI Analysis

Ennis Inc. Common Stock is a micro-cap industrials company valued at $523 million. Revenue stands at $392 million. From a quality standpoint, Ennis shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 7.9 confirms fortress-level solvency. On valuation, the stock is attractively valued at 12.4x earnings, with a modest 3% margin of safety vs Graham Number. Growth dynamics show revenue growing at 0.4% and profit growth of 6.1%. The 4.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 70/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Ennis's consistent 14% ROE at just 12x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $35 million in annual free cash flow (6.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer