EBF: Ennis, Inc

Date: 9 March 2009
Price: $6.98
P/E: 4.37
FP/E: 4.4 (only one estimate)
P/B: 0.5
Yield: 6.7%
Debt/Eq: 0.19

Introduction
This is a smaller company than the others I'm looking at, with a market cap of $180m. It seems to be basically two businesses under one umbrella - a "business forms" division, and an apparel division. So it has a rather confused identity, but is incredibly cheap on P/E.

Company Description
As above - business forms, and apparel. It looks like it acquired another business (perhaps the apparel division?) in about 2006, as it grew substantially that year.

Past 10 years
All looks good. Sales and earnings have consistently grown, with a bump in 2006, which coincided with more shares being issued - but even EPS has grown throughout that time.

Book value has also grown. Dividends have been paid at around the same level every year. The stock has never been highly valued - P/E ratio is typically in the range of 10-14, but obviously we have quite a way to go to reach such heights from here!

Pros
It looks like a simple business, which has been well run over the past 10 years - including a successful acquisition. P/E ratio is crazy, and the dividend yield is nice.

Cons
Forward looking statements in the 9-month results in December were very cautious: "we continue to believe the remainder of this fiscal year and the next will be extremely difficult for all companies. We are encouraged however, by how we have navigated these waters to date".

Conclusion
I like Ennis. Not so much as PAC perhaps, but I'd say that this a Buy.