Ennis, Inc. Is Still In Good Form

The industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm re-reviewing a business equipment company named Ennis, Inc. It's trading ticker symbol is EBF. I last reviewed Ennis on January 18.

Ennis Inc. provides business equipment to various industries. It is engaged in manufacturing, designing and selling business forms and other printed business products.

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

I use three primary keys to gauge dividend equities or funds like Ennis, Inc.: 

(1) Price

(2) Dividends

(3) Returns

After those three, I'll use four more keys to unlock an equity or fund in which to invest.

Those three primary keys, however, best tell whether a company has made, is making, and will make money. 

EBF Price

Ennis's price at Wednesday's market close was $20.15 per share. A year ago its price was $17.00. So it gained  $3.15 per share in the past year. If EBF does as well this year its share price will increase from $20.15 to $23.20, or about 15.6%.

EBF Dividends

Ennis's most recent quarterly dividend was $0.20 declared December 22nd and paid February 9th. That last payment also included a special $0.10 payment the brought the total paid to $0.30

The annual dividend for 2018 is estimated to be $0.80 payable quarterly in May, August, November, and next February

The yield from that $0.80 annual dividend was almost 4% at yesterday's $20.15 price.

Gains For EBF?

Adding the $0.80 dividend to the $3.15 estimated year over year price gain shows a potential $3.95 gross gain for the coming year.  

Now I'll subtract the cost to trade Ennis, Inc. shares. 

A  $1,000.00 invested at yesterday's $20.15 price bought 50 shares. 

Those 50 shares get hit with broker fees of $5 at purchase and another $5 at sale for a per share cost of about $0.20 per share

Subtracting that $0.20 brokerage cost from the estimated $3.75 gross leaves a net gain to 2019 of $3.55

X 50 shares 

= $177.50

or a 17.6% net gain on a $1,007.50 investment.

Therefore, Ennis, Inc. (whose ticker symbol is EBF), now shows a possible 17.6% gain by my simple year over year calculation with a 3.97% dividend included. 

Two analysts cover this stock and both now give it hold recommendations. Their estimated one-year target price is $22 or $1.15 lower than the year over year estimate I just made up.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to prove to be far lower. More study is required for you to determine if Ennis, Inc (having dropped a dollar in price in the past month) is now worth your time and money.

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