Ennis, Inc. Delivers in a Tough Market—Here’s Why Investors Should Take Note

The printing and envelope industry might seem like a relic of the past, but Ennis, Inc. (NYSE: EBF) is proving that old-school businesses can thrive with the right strategy. Let’s dig into their latest financial results and why shareholders should pay attention to this cash-rich stock ahead of its upcoming annual meeting.

A Rocky Quarter, But a Strong Fiscal Year

Ennis reported fiscal 2025 results (ended February 28, 2025) with a focus on stability amid volatility. While Q1 2024 (ended May 31, 2024) saw a 7.4% year-over-year revenue drop to $103.1 million, the company turned things around by boosting EBITDA to $19.0 million—up from $16.8 million the prior quarter—thanks to disciplined cost management and integrating ERP systems at recent acquisitions like Printing Technologies, Inc.

The full fiscal year 2025 (ended February 28) isn’t fully detailed, but Q3 and Q2 results show consistent performance:
- Q3 2024: $99.8 million revenue, 30% gross margin, $19.0 million EBITDA.
- Q2 2024: $99.0 million revenue, maintaining stability despite a tough economic backdrop.

Why This Stock Stands Out: No Debt, Cash Reserves, and Smart Acquisitions

Ennis isn’t just surviving—it’s thriving. Here’s the kicker:
- Zero Debt: The company has a $65 million credit facility but no balance drawn, giving it flexibility.
- Cash is King: With significant cash reserves, Ennis is deploying capital strategically. In Q1 2024 alone, they repurchased 91,883 shares at an average price of $19.79.
- Acquisition Machine: Since 2023, Ennis has bought Eagle Graphics/Diamond Graphics (October 2023) and Northeastern Envelope (April 2025), expanding its footprint without overextending financially.

The latest Northeastern Envelope deal, announced just days after fiscal year-end, shows CEO Keith S. Walters isn’t resting on his laurels. These moves aren’t just about growth—they’re about consolidating a fragmented industry and leveraging technology (like ERP systems) to boost margins.

Dividends and the Shareholder Meeting: What Investors Need to Know

Ennis has a solid dividend track record, recently declaring a $0.25-per-share quarterly dividend, payable May 5 to shareholders of record as of April 14, 2025. For income investors, this is a reliable 1.3% yield (based on recent prices)—not huge, but safe and growing.

The company also set the 2025 Annual Shareholder Meeting for July 17, with a May 16 record date. Shareholders who own EBF by the close of May 16 will vote on governance and strategic priorities. This is a reminder that engaged ownership matters here—a company that’s transparent and accountable to its investors.

The Bottom Line: A Steady Hand in a Volatile World

Ennis isn’t a high-flying tech stock, but it’s a recession-resistant cash generator with a 18.4% EBITDA margin (non-GAAP) and no debt. The acquisition strategy is smart: buying undervalued competitors and integrating them into a cohesive operation.

Here’s the math:
- Revenue consistency: $99M–$103M per quarter despite headwinds.
- Margin resilience: EBITDA held steady at 18–30% of sales even when top-line growth stalled.
- Balance sheet strength: Cash reserves and no debt mean no defaults, no refinancing risks.

If you’re looking for a defensive play with a dividend and growth via acquisitions, Ennis is worth a closer look. The stock price has been range-bound lately, but with a $0.25 dividend and a track record of share buybacks, this is a stock that rewards patience.

Final Takeaway: Buy the Dips, Hold the Dividends

Ennis, Inc. isn’t a get-rich-quick story, but it’s a reliable performer in a niche market. With no debt, smart capital allocation, and a shareholder-friendly approach, EBF could be a steady winner for conservative investors. If the stock dips below $20, that’s a buy signal—especially with the dividend and buyback program in place.

Action Alert: Ennis, Inc. (EBF) is a hold for now, but keep an eye on post-annual-meeting news. If the company confirms more acquisitions or raises the dividend, this could be a strong buy. Stay tuned!