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3 Reasons to Buy Ennis Business Forms

3 Reasons to Buy Ennis Business Forms
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Ennis Business Forms (NYSE: EBF) continues to defy the Internet, and the onslaught of online retailers such as Amazon (NASDAQ: AMZN) and eBay (NASDAQ: EBAY).

Its name pretty much tells investors what the company does, and does well. Ennis Business Forms also has an apparel division. The company has appeal to growth, value and income investors looking for a steady holding.

For income investors, Ennis Business Forms has always been generous to its shareholders.

The dividend yield is 4.77 percent. Compare that with the average of about 1.8 percent for a member of the Standard & Poor's 500 Index. The payout ratio is high. But the debt ratio is long for Ennis Business Forms, so it is keeping a clean balance sheet.

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There is much for value investors to like about Ennis Business Forms.

The price-to-sales ratio is 0.70. That means that every dollar of sales is going at a 30 percent discount. Sales growth is up for the company on a quarterly basis. That is a bullish trend from the last five years; and shows that the price-to-sales ratio is not indicative of "catching a falling knife."

Growth investors should be especially pleased.

Quarterly growth is up. That is a bullish reversal from the past five years. For the next half-decade, earnings-per-share growth is projected to be 14.10 percent by the Wall Street analyst community. That tops what is expected from Ebay, especially when combined with the improving sales growth for the most recent quarter.

Competing against Amazon, Ebay and other Internet retailers is not easy. But Ennis Business Forms has maintained a solid balance sheet and strong income statement. For growth, income, and value there are many solid features to the company.

Posted-In: business printing Ennis Business Forms printing industryLong Ideas Dividends Technicals Trading Ideas


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