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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
14.4%
Sector: 8.9%
Dividend Analysis audit
INCOME
5.73%
Trailing Yield
$5.73
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
72%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ENNIS, INC. (EBF) receives a "Hold" rating with a composite score of 47.4/100, ranked #288 out of 4446 stocks. Key factor scores: Quality 50/100, Value 50/100, Momentum 50/100. This is quantitative analysis only — not investment advice.
ENNIS, INC. (EBF) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ENNIS, INC. Do?
Ennis, Inc. designs, manufactures, and sells business forms and other business products in the United States. The company offers snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls, and pressure sensitive products under the Ennis, Royal Business Forms, Block Graphics, Specialized Printed Forms, 360º Custom Labels, ColorWorx, Enfusion, Uncompromised Check Solutions, VersaSeal, Ad Concepts, FormSource Limited, Star Award Ribbon Company, Witt Printing, B&D Litho, Genforms, PrintGraphics, Calibrated Forms, PrintXcel, Printegra, Falcon Business Forms, Forms Manufacturers, Mutual Graphics, TRI-C Business Forms, Major Business Systems, Independent Printing, Hoosier Data Forms, Hayes Graphics, Wright Business Graphics, Wright 360, Integrated Print & Graphics, the Flesh Company, Impressions Direct, and Ace Forms brands. It also provides point of purchase advertising for large franchise and fast-food chains, as well as kitting and fulfillment under the Adams McClure brand name; and presentation and document folders under the Admore, Folder Express, and Independent Folders brands. In addition, the company offers custom printed, high performance labels, and custom and stock tags under the Ennis Tag & Label brand name; custom and stock tags and labels under the Allen-Bailey Tag & Label, Atlas Tag & Label, Kay Toledo Tag, and Special Service Partners brands; custom and imprinted envelopes under the Trade Envelopes, Block Graphics, Wisco, and National Imprint Corporation brands; and financial and security documents under the Northstar and General Financial Supply brands. It distributes business products and forms through independent distributors. The company was formerly known as Ennis Business Forms, Inc. Ennis, Inc. was incorporated in 1909 and is headquartered in Midlothian, Texas. ENNIS, INC. (EBF) is classified as a small-cap stock in the Industrials sector, specifically within the Business Supplies industry. The company is led by CEO Keith S. Walters and employs approximately 2,000 people, headquartered in MIDLOTHIAN, Texas. With a market capitalization of $547M, EBF is one of the notable companies in the Industrials sector.
ENNIS, INC. (EBF) Stock Rating — Hold (April 2026)
As of April 2026, ENNIS, INC. receives a Hold rating with a composite score of 47.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.EBF ranks #288 out of 4,446 stocks in our coverage universe. Within the Industrials sector, ENNIS, INC. ranks #51 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EBF Stock Price and 52-Week Range
ENNIS, INC. (EBF) currently trades at $22.36. The 52-week high for EBF is $21.60, which means the stock is currently trading 3.5% from its annual peak. The 52-week low is $16.30, putting the stock 37.2% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is EBF Overvalued or Undervalued? — Valuation Analysis
ENNIS, INC. (EBF) carries a value factor score of 50/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 12.49x, compared to the Industrials sector average of 28.33x — a discount of 56%. The price-to-book ratio stands at 1.80x, versus the sector average of 2.23x. The price-to-sales ratio is 1.39x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, EBF trades at 10.23x EV/EBITDA, versus 5.70x for the sector.
Overall, EBF's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ENNIS, INC. Profitability — ROE, Margins, and Quality Score
ENNIS, INC. (EBF) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.4%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 12.4% versus the sector average of 3.3%.
On a margin basis, ENNIS, INC. reports gross margins of 30.7%, compared to 35.8% for the sector. The operating margin is 13.6% (sector: 6.2%). Net profit margin stands at 11.1%, versus 3.9% for the average Industrials stock. Revenue growth is running at 1.1% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
EBF Debt, Balance Sheet, and Financial Health
ENNIS, INC. has a debt-to-equity ratio of 16.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 3.79x, indicating strong short-term liquidity.
EBF has a beta of 0.47, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ENNIS, INC. is 87/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ENNIS, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, ENNIS, INC. reported revenue of $396M and earnings per share (EPS) of $0.43. Net income for the quarter was $44M. Gross margin was 30.7%. Operating income came in at $54M.
In Q3 2026, ENNIS, INC. reported revenue of $100M and earnings per share (EPS) of $0.43. Net income for the quarter was $11M. Gross margin was 31.9%. Revenue grew 0.4% year-over-year compared to Q3 2025. Operating income came in at $15M.
In Q2 2026, ENNIS, INC. reported revenue of $99M and earnings per share (EPS) of $0.51. Net income for the quarter was $13M. Gross margin was 30.5%. Revenue grew -0.4% year-over-year compared to Q2 2025. Operating income came in at $12M.
In Q1 2026, ENNIS, INC. reported revenue of $97M and earnings per share (EPS) of $0.38. Net income for the quarter was $10M. Gross margin was 31.1%. Revenue grew -5.7% year-over-year compared to Q1 2025. Operating income came in at $13M.
Over the past 8 quarters, ENNIS, INC. has demonstrated a growth trajectory, with revenue expanding from $103M to $396M. Investors analyzing EBF stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EBF Dividend Yield and Income Analysis
ENNIS, INC. (EBF) currently pays a dividend yield of 5.7%. At this yield, a $10,000 investment in EBF stock would generate approximately $$573.00 in annual dividend income. The net margin of 11.1% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
EBF Momentum and Technical Analysis Profile
ENNIS, INC. (EBF) has a momentum factor score of 50/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 3/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EBF vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing EBF against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EBF vs S&P 500 (SPY) comparison to assess how ENNIS, INC. stacks up against the broader market across all factor dimensions.
EBF Next Earnings Date
No upcoming earnings date has been announced for ENNIS, INC. (EBF) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EBF? — Investment Thesis Summary
ENNIS, INC. presents a balanced picture with arguments on both sides. Low volatility (stability score 87/100) reduces downside risk.
In summary, ENNIS, INC. (EBF) earns a Hold rating with a composite score of 47.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EBF stock.
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Institutional Research Dossier
ENNIS, INC. (EBF) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Ennis, Inc. (EBF). While the company exhibits strong profitability and stability, its high valuation relative to the sector, coupled with limited revenue growth, tempers our enthusiasm. The company's focus on a mature market and its reliance on acquisitions for growth present challenges to significant outperformance.
Ennis operates in the business forms and supplies industry, a sector facing secular decline due to increasing digitization. The company's ability to maintain profitability through cost control and strategic acquisitions is commendable, but the lack of organic growth and the premium valuation suggest limited upside potential. Investors should consider the risks associated with a mature industry and the company's reliance on acquisitions to sustain growth before initiating or increasing their positions.
Business Strategy & Overview
Ennis, Inc. operates as a manufacturer and supplier of business forms and related products, primarily serving independent distributors across the United States. The company's strategy revolves around offering a broad range of products, including snap sets, continuous forms, labels, envelopes, and other printed materials. Ennis distinguishes itself through its extensive network of manufacturing facilities and its focus on providing customized solutions to its distributor base.
The company's growth strategy has historically relied on acquisitions to expand its product offerings and geographic reach. This approach has allowed Ennis to consolidate its position in a fragmented market and achieve economies of scale. However, the success of this strategy depends on the company's ability to effectively integrate acquired businesses and realize synergies.
Ennis faces the challenge of operating in a mature and slowly declining industry. The increasing adoption of digital solutions has reduced the demand for traditional business forms. To mitigate this trend, Ennis has diversified its product portfolio to include labels, tags, and other specialty printing products. The company has also invested in technology to improve its manufacturing processes and enhance its customer service capabilities.
The company's distribution model, which relies on independent distributors, provides a degree of insulation from direct competition. These distributors often have established relationships with end-users, providing Ennis with access to a wide range of customers. However, this model also means that Ennis is dependent on the success of its distributors and must provide them with competitive pricing and high-quality products to maintain their loyalty.
Ennis's strategic positioning is focused on being a reliable and cost-effective supplier to its distributor network. The company emphasizes its ability to provide customized solutions and quick turnaround times. While this strategy has been successful in maintaining profitability, it may limit the company's ability to achieve significant revenue growth in the long term.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
1.1%
Sector: 6.4%
-82% VS SCTR
Economic Moat Analysis
Ennis's economic moat is best characterized as Narrow. The company benefits from a combination of factors that provide a modest competitive advantage, but these advantages are not strong enough to create a Wide moat. The primary sources of Ennis's moat are its established brand reputation, its extensive distribution network, and its ability to offer customized solutions.
The company's long history in the business forms industry has allowed it to build a strong brand reputation for quality and reliability. This reputation provides Ennis with a degree of pricing power and helps it retain customers. However, the commoditized nature of many of its products limits the extent to which it can command premium prices.
Ennis's distribution network, which consists of independent distributors, provides a competitive advantage by giving the company access to a wide range of customers. These distributors often have established relationships with end-users, making it difficult for new entrants to gain market share. However, this advantage is somewhat mitigated by the fact that distributors can easily switch to alternative suppliers if they find better pricing or service.
The company's ability to offer customized solutions is another source of competitive advantage. Many of Ennis's customers require specialized forms or labels that are tailored to their specific needs. Ennis's manufacturing capabilities and its focus on customer service allow it to meet these requirements. However, this advantage is not unique to Ennis, as many other companies in the industry also offer customized solutions.
Overall, Ennis's economic moat is relatively narrow. While the company benefits from its brand reputation, distribution network, and ability to offer customized solutions, these advantages are not strong enough to prevent competitors from eroding its market share. The commoditized nature of many of its products and the ease with which distributors can switch suppliers limit the company's pricing power and its ability to generate sustainable excess returns.
The moat is likely stable. While the industry is in secular decline, Ennis's established position and focus on cost control should allow it to maintain its profitability and market share. However, the company's reliance on acquisitions for growth and the increasing competition from digital solutions pose challenges to its long-term competitive position.
Financial Health & Profitability
Ennis's financial health appears relatively stable, characterized by healthy margins and a strong current ratio. However, revenue growth has been limited, and the company's reliance on acquisitions for growth raises some concerns about its long-term financial performance. The company's debt-to-equity ratio is low, suggesting a conservative approach to financial leverage.
The company's gross margin has remained relatively consistent over the past several years, hovering around 30%. This indicates that Ennis has been able to maintain its pricing power and control its cost of goods sold. The operating margin has also been stable, ranging from 12.5% to 15.3% over the past few years. This suggests that Ennis has been able to effectively manage its operating expenses.
Ennis's return on equity (ROE) of 14.4% is higher than the sector average of 9.2%, indicating that the company is generating attractive returns on its shareholders' equity. This is a positive sign, but it is important to note that the company's ROE may be inflated by its low debt-to-equity ratio.
The company's current ratio of 3.79 indicates that it has ample liquidity to meet its short-term obligations. This is a positive sign, but it is important to note that the company's cash balance is not disclosed in the provided data. The absence of free cash flow data also makes it difficult to assess the company's ability to generate cash from its operations.
Looking at the quarterly financial history, revenue has fluctuated slightly but generally remained around $100 million per quarter. Net income has also been relatively stable, although it has varied from quarter to quarter. The company's gross margin and operating margin have also remained relatively consistent over time.
Overall, Ennis's financial health appears to be sound. The company has healthy margins, a strong current ratio, and a low debt-to-equity ratio. However, its limited revenue growth and reliance on acquisitions for growth raise some concerns about its long-term financial performance. The lack of free cash flow data also makes it difficult to fully assess the company's financial health.
Valuation Assessment
Ennis's valuation appears stretched relative to its sector peers, particularly considering its limited growth prospects. The company's P/E ratio of 47.5x is significantly higher than the sector average of 27.7x, suggesting that investors are paying a premium for its earnings. Similarly, its EV/EBITDA ratio of 8.6x is higher than the sector average of 5.7x, indicating that the company is also expensive on an enterprise value basis.
The company's high valuation may be justified by its strong profitability and stability. Ennis's ROE of 14.4% is higher than the sector average, and its operating margin of 13.6% is also significantly higher than the sector average of 6.2%. These factors suggest that Ennis is a well-managed and profitable company.
However, the company's limited revenue growth raises concerns about its ability to sustain its high valuation. Ennis's revenue growth of 1.1% is significantly lower than the sector average of 6.6%, indicating that the company is not growing as quickly as its peers. This suggests that the company's high valuation may not be sustainable in the long term.
The company's reliance on acquisitions for growth also raises concerns about its valuation. Acquisitions can be a risky strategy, and there is no guarantee that Ennis will be able to successfully integrate acquired businesses and realize synergies. If the company is unable to generate sufficient returns from its acquisitions, its valuation may decline.
Given its high valuation and limited growth prospects, Ennis's stock appears to be overvalued. While the company is profitable and stable, its high valuation suggests that investors are already pricing in significant future growth. Unless the company can accelerate its revenue growth or improve its profitability, its stock price may decline.
A more reasonable valuation would likely be closer to the sector average, reflecting the company's mature industry and limited growth potential. Investors should exercise caution when considering an investment in Ennis, as its high valuation may not be sustainable in the long term.
Risk & Uncertainty
Ennis faces several risks and uncertainties that could negatively impact its business and financial performance. The most significant risk is the secular decline in demand for traditional business forms due to the increasing adoption of digital solutions. This trend could lead to lower revenue and profitability for Ennis, particularly if the company is unable to successfully diversify its product portfolio.
Another risk is the company's reliance on acquisitions for growth. Acquisitions can be risky, and there is no guarantee that Ennis will be able to successfully integrate acquired businesses and realize synergies. If the company is unable to generate sufficient returns from its acquisitions, its financial performance may suffer.
The company also faces competition from other manufacturers of business forms and related products. This competition could lead to lower prices and reduced market share for Ennis. The company's ability to differentiate its products and services and maintain its competitive position will be critical to its success.
The company's distribution model, which relies on independent distributors, also presents a risk. If the company is unable to maintain strong relationships with its distributors, it could lose market share. The company's ability to provide competitive pricing and high-quality products to its distributors will be essential to maintaining their loyalty.
Finally, the company is subject to general economic risks, such as recessions and changes in interest rates. These risks could negatively impact the demand for the company's products and its ability to access capital.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEnnis's consistent profitability and strong balance sheet provide a solid foundation for continued success in a consolidating industry.
BULL VIEWThe company's strategic acquisitions and focus on cost control will allow it to maintain its market share and generate attractive returns for shareholders.
The Bear Case
BEAR VIEWThe secular decline in demand for traditional business forms will continue to pressure Ennis's revenue and profitability.
BEAR VIEWThe company's high valuation is unsustainable given its limited growth prospects and reliance on acquisitions for growth.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EBF and 4,400+ other equities.
ENNIS, INC. exhibits a 46% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
12.4%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
30.7%
Sector: 35.8%
Operating Margin
Core business profitability
13.6%
Sector: 6.2%
Net Margin
Bottom-line profitability
11.1%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $573 annually in dividends at the current trailing rate.
