Current Report: Ennis (EBF)
Photo by Maxim Hopman on Unsplash
Ennis Inc, has the ticker symbol EBF. This is my very first report on EBF for my Viking portfolio. However I have reported on and selected Ennis for one of my previous seven portfolios.
Ennis Inc 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.
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.
Three key data points gauge
Ennis Inc:
(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
Ennis’s price per share was $22.80 at Friday’s market close. However, in the past year, EBF’s share price rose by $3.00 or about 15%.
If Ennis’s stock trades in the range of $12.00 to $28.00 this next year, its recent $22.80 per share price might reach $25.00 by next year. My upside increase estimate of $2.20 is about $1.00 under the annual price target estimate from the analyst covering EBF for a brokerage house.
EBF Dividends
Ennis’s most recently declared quarterly dividend of $0.25 per share equals $1.00 annually and casts a yield of 4.39%.
EBF Returns
Adding the $1.00 annual
EBF dividend to my one-year price upside estimate of $2.20 shows a $3.20 potential gross gain per share.
At Friday’s $22.80 closing price, a little over $1000 would buy 44 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.23 per share.
Subtract that maybe $0.23 brokerage cost from my estimated $3.20 gross gain per share results in a net gain of $2.97 X 44 shares = $130.68 for a 13% net gain including a 4.39% annual yield.
In a year our $1K investment in shares of Ennis Inc could generate $43.90 in cash dividends. Of course, a single share of EBF stock at today's $22.80 share price is almost 2 times less than the annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this is really a good time to buy EBF shares based on their dividends for the year 2022. The dividend from $1K invested is 1.925 times more than EBF’s single share price. Consider yourself alerted. Now IS the time for Ennis Inc.
All of the estimates above are speculation based on the past history of Ennis Inc. Only time and money invested in this stock will determine its market value.
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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 solicitation, ...
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