Current Analysis: Ennis (EBF)

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Ennis Inc (EBF) is a manufacturer and supplier of print products for the wholesale trade. The company's products include advertising specialities, business forms and supplies, commercial printing, eCommerce solutions, envelopes, labels and tags, and folders and packaging.

The company was formerly known as Ennis Business Forms, Inc. Ennis, Inc. was incorporated in 1909 and is headquartered in Midlothian, Texas.

Three key data points gauge Ennis Inc or any dividend-paying firm.The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

 

EBF Price

Over the past year, Ennis’s share price fell about 2% from $21.58 to $21.11 as of Friday’s market close.

If EBF stock trades in the range of $18.00 to $25.00 this next year, its recent $21.11 share price might rise to $24.00 by next year. Of course, EBF’s price could drop about the same $2.89 estimated amount, or more.

My upside estimate of $2.89, however, is $3.00 under the median of price targets estimated by analysts following EBF for brokers.

 

EBF Dividend

Ennis has paid regular quarterly dividends since November 1, 1991. Ennis’s most recent Q dividend, payable November 3 to shareholders of record October 5th, is $0.25.

That measures up to $1.00 annually for a forward looking yield of 4.74%.

 

EBF Returns

Adding the $1.00 anticipated annual dividend to EBF’s estimated $2.89 possible price upside reveals a $3.89 estimated gross gain per share for the coming year.

At Friday’s $21.11 closing price, a little under $1000 would buy 47 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.21 per share.

Subtracting that likely $0.21 brokerage cost from my estimated $3.89 estimated gross gain per share makes a net gain of $3.68 X 47 shares = $172.96 or about a 17.4% net gain. Furthermore, the estimated $47.40 annual dividend from $1000 invested comes in about 2.25 times greater than the recent $21.11 single share price.

This might be about time to pounce on EBF shares. The question is, what future dividend payments and price changes lie ahead?

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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