Ennis Inc. (NYSE:EBF) is one of the 10 oversold small cap stocks to buy now.
The company’s recent results announcement offers a lot of encouragement. On April 20, Ennis Inc. (NYSE:EBF) reported its fourth quarter earnings of 35c per share, matching the prior year results. Quarterly revenue reached $96.4 million, compared to $92.7 million for the same period last year. Chairman, Chief Executive, and President Keith Walters highlighted that the results for the quarter met management’s expectations.
He noted that this year’s acquisitions contributed around $8.8 million to the quarter’s topline figures, which were partially offset by reduced organic volume. The gross margin remained healthy at 29.2%, against 29.5% recorded in the same quarter last year. In terms of operations, EBITDA for the quarter was recorded at $16.3 million, which translates into 17.8% in margins. This indicates consistency relative to the $16.5 million that was recorded in the same quarter last year.
Walters also highlighted that the company completed the ERP integration of Northeastern Envelope Company, its biggest acquisition during the year. The integration will help manage costs and pricing and maintain consistent margins. Acquisitions also delivered 5 cents of positive impact on diluted EPS and 14 cents on full-year EPS.
Ennis Inc. (NYSE:EBF) is a manufacturer and seller of business forms and various printed products. Under an umbrella of brands, it offers a vast range of products which include envelopes, laser-cut sheets, tags, snap sets, jumbo rolls, and more. It also provides custom products like labels, stock tags, and stock pressure seal documents, to name a few.
While we acknowledge the potential of EBF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Follow Insider Monkey on Google News.
