Recent Portfolio Addition by Chuck Royce (Trades, Portfolio)
On December 31, 2023, the investment firm managed by Charles M. Royce made a notable addition to its portfolio by acquiring 20,000 shares of Ennis Inc (EBF, Financial), a leading manufacturer and supplier of print products for the wholesale trade. This transaction was executed at a trade price of $21.91 per share, increasing the firm's total holdings in Ennis Inc to 1,477,163 shares. The trade has a 0.33% position in the portfolio, reflecting a 5.71% ownership of the traded stock.
Profile of Investment Firm: Chuck Royce (Trades, Portfolio)
Charles M. Royce, a distinguished figure in the investment community, has been at the helm of Royce Pennsylvania Mutual Fund since 1972. With a bachelor's degree from Brown University and an MBA from Columbia University, Royce's firm specializes in small-cap investing, focusing on companies with market capitalizations up to $5 billion. The firm's investment philosophy centers on identifying undervalued stocks with strong balance sheets, a history of success, and promising futures. With 907 stocks in its portfolio and an equity of $9.82 billion, the firm's top sectors include Industrials and Technology, with top holdings such as FormFactor Inc (FORM, Financial) and Ziff Davis Inc (ZD, Financial).
Overview of Ennis Inc
Founded on January 20, 1969, Ennis Inc has established itself as a key player in the Industrial Products sector, offering a diverse range of print products. With a market capitalization of $528.103 million, the company's offerings span from business forms to eCommerce solutions. Despite a challenging market, Ennis Inc maintains a PE Percentage of 11.87, indicating profitability, and is currently deemed "Fairly Valued" with a GF Value of $21.29. The stock's price-to-GF Value ratio stands at 0.96, with a current stock price of $20.41, reflecting a 6.85% decrease since the trade date.
Impact of Chuck Royce (Trades, Portfolio)'s Trade on Portfolio
The recent acquisition of Ennis Inc shares by Chuck Royce (Trades, Portfolio)'s firm has not only increased the firm's stake in the company but also reinforced its investment strategy in the industrials sector. The trade, while modest in its portfolio impact, aligns with the firm's philosophy of investing in companies with solid financials and growth potential.
Ennis Inc's Stock Performance and Valuation
Ennis Inc's stock performance has been robust since its IPO, with an increase of 4,152.08%. However, the year-to-date change shows a decline of 7.98%. The company's GF Score of 78/100 suggests a likely average performance, supported by a strong Financial Strength rank of 10/10 and a Profitability Rank of 7/10. However, its Growth Rank of 3/10 indicates slower growth prospects.
Ennis Inc's Position in the Industrial Products Sector
Ennis Inc's role in the Industrial Products industry is significant, with a market capitalization that resonates with Chuck Royce (Trades, Portfolio)'s investment strategy. The firm's focus on industrials is evident in its portfolio, and Ennis Inc's addition is a strategic move to bolster this sector's representation.
Financial Health and Growth Prospects of Ennis Inc
Ennis Inc's financial health is robust, with a cash to debt ratio of 9.35 and an interest coverage of 170.50. The company's Piotroski F-Score of 6 and Altman Z score of 8.83 further affirm its stability. However, its Growth Rank suggests that investors may need to temper their expectations for rapid expansion.
Comparative Analysis of Ennis Inc
When compared to the largest guru shareholder, Hotchkis & Wiley Capital Management LLC, Chuck Royce (Trades, Portfolio)'s firm holds a significant position in Ennis Inc. The company's stock performance has been impressive since its IPO, but recent metrics indicate a need for cautious optimism.
Conclusion
The recent trade by Chuck Royce (Trades, Portfolio)'s firm in Ennis Inc underscores the firm's commitment to value investing and confidence in the company's financial health and market position. While the stock's current valuation and performance metrics present a mixed picture, the firm's strategic acquisition suggests a belief in Ennis Inc's potential as a value investment opportunity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
