Ennis Inc lifted its quarterly dividend 5% after Q2 revenue rose 3.4% to $102M, with a payout ratio of 60% and a free cash flow yield above 10%. Insider buying signals confidence.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Ennis Inc (NYSE: EBF) raised its quarterly dividend by 5% to $0.2625 a share alongside second-quarter revenue of $102 million, a 3.4% increase from a year earlier. The trade printer posted a gross profit margin of 29.9%, down from 30.5% in the prior-year period.
The dividend increase brings the indicated yield to 4.69%, with a payout ratio of 60%. Free cash flow yield stands at 10.26%, and operating cash flow grew 32.8% over the past year, providing a cushion for the payout.
Ennis operates a network of independent distributors across the U.S., manufacturing custom and semi-custom printed business forms, labels, and promotional items. Its market capitalization is about $539 million.
GuruFocus's GF Value model, which combines historical multiples and projected growth, estimates Ennis's intrinsic value at $19.93 a share. The stock traded at $21.32, roughly 7% above that estimate. The same firm's GF Score, a composite of financial strength, profitability, growth, valuation, and momentum, put Ennis at 70 out of 100. The company scored 8 out of 10 in both financial strength and profitability, supported by an Altman Z-Score of 8.86, a Piotroski F-Score of 9, and a Beneish M-Score of -3.06, all pointing to low earnings-manipulation risk. Growth and momentum ranks were lower.
Among five GuruFocus-tracked institutional investors, one added to holdings and three trimmed positions. On the insider side, Ennis executives and directors purchased about $60,492 worth of shares over the last 12 months with no reported sales.
EBF shares held at $21.32 after the report.
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