With Ennis Inc. trading at a quote of 18.44, the stock's potential upside of 3.34 suggests a promising opportunity for investors looking to capitalize on short-term gains this July. Despite a Jensen Alpha of -0.19 indicating some underperformance relative to the market, the company's position in the Business Equipment & Supplies industry could provide a solid foundation for a rebound, making it a stock to watch closely.
Key Points
The asset utilization ratio measures how effectively a company generates revenue from its assets. Ennis Inc. boasts an impressive asset utilization rate of 113.09%, indicating it earns $1.13 for every dollar of assets. This high ratio suggests that Ennis Inc. is efficiently leveraging its assets to boost revenue, reflecting strong operational performance.
The successful prediction of Ennis
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Ennis Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Ennis based on Ennis hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Ennis's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Ennis's related companies.
Use Technical Analysis to project Ennis expected Price
Ennis technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Ennis technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Ennis trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Ennis Gross Profit
Ennis Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ennis previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ennis Gross Profit growth over the last 10 years. Please check Ennis'
gross profit and other
fundamental indicators for more details.
Breaking down Ennis Further
The company reported the last year's revenue of 394.62
M. Total Income to common stockholders was 40.22
M with profit before taxes, overhead, and interest of 117.29
M.
Total Revenue Breakdown
Ennis' Total Revenue is decreasing over the last several years with very volatile swings. Total Revenue is estimated to finish at about 420.1
M this year. Total Revenue usually refers to the total amount of income generated by the sale of goods or services related to the company's primary operations. At this time, Ennis' Total Revenue is most likely to decrease significantly in the upcoming years.
| 2015 | 356.89 Million |
| 2017 | 370.17 Million |
| 2018 | 400.78 Million |
| 2019 | 357.97 Million |
| 2021 | 400.01 Million |
| 2022 | 431.84 Million |
| 2023 | 394.62 Million |
| 2025 | 420.11 Million |
Every rose has its thorn, and investing is no exception. As July approaches, Ennis Inc. appears to be on the radar for potential strong performance, given its robust financial standing. The company boasts a solid working capital of $119.44 million, indicating strong liquidity to support operations and growth initiatives. With a Price to Earnings ratio of 15.60x, Ennis Inc. is valued attractively compared to many peers in the industrial sector. Moreover, with 83.20% of shares owned by institutions, there is significant confidence in its stability and future prospects. However, investors should keep an eye on its modest potential upside of 3.34, balancing optimism with caution.
Will Ennis price drop impact its balance sheet?
Ennis Inc's information ratio has recently dropped to -0.11, indicating that the stock's returns aren't sufficiently compensating for the risk involved. This could suggest upcoming volatility. While a market adjustment might lead to a price increase, it's important to consider the implications of a potential price decline. A falling stock price could affect Ennis's market capitalization and investor sentiment, possibly impacting its financial stability and capital-raising ability. Investors should monitor Ennis's financial health and market trends closely to make informed decisions. The stock shows low volatility, with a skewness of -0.37 and kurtosis of 4.89.
Understanding these volatility metrics can help investors time their market moves, especially during bear markets, which can pressure Ennis's stock price and prompt portfolio adjustments.As we look ahead to July, Ennis Inc. presents a compelling opportunity for investors. With a strong buy consensus from analysts and a highest estimated target price of $27.75, there's a promising upside potential for those considering an investment. The company's fiscal year ends in February, which means any strategic announcements or financial updates in July could provide valuable insights into its performance trajectory. Given the current EPS estimate of 1.56, Ennis appears to be on solid footing, making it a stock worth watching closely. Whether you're a seasoned investor or new to the market, keeping an eye on Ennis could prove beneficial as it navigates the months ahead..
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Ennis Inc. Please refer to our
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