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Cimpress Stock Gains From Business Strength Despite Headwinds
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Cimpress plc (CMPR - Free Report) is witnessing solid momentum across its Vista, National Pen and Upload & Print segments. Significant growth in the e-commerce channels is driving the National Pen segment while increasing order rates is proving beneficial for the Upload & Print segment. The company’s focus on improving the customer experience and new product introductions are aiding its Vista segment.
In the fourth quarter of fiscal 2024, (ended June 30, 2024) the Vista segment’s revenues grew 8% year over year. In the same quarter, the Upload & Print segment’s revenues rose 6% year over year while the same for National Pen grew 1%.
The scale of Cimpress’ operation gives small business customers access to quality products and printing services, which would otherwise have been out of reach. The company has expanded its product line to include a wide variety of offerings for customers' marketing needs. Also, the PrintBrothers' businesses continue to adopt technologies that are part of the CMPR’s mass customization platform.
CMPR remains focused on cost-control measures that have been driving its margins and profitability. In the fiscal fourth quarter, its gross margin increased 100 basis points year over year. Also, the adjusted EBITDA margin was in line with the year-ago quarter’s level.
CMPR Stock’s Price Performance
Image Source: Zacks Investment Research
In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 19.5% compared with the industry’s 18.2% growth.
However, the company has been witnessing the adverse impacts of the high costs and operating expenses. From fiscal 2020 to fiscal 2024, its cost of sales witnessed a 6.3% CAGR (Compounded Annual Growth Rate), while selling, general and administrative expenses witnessed a 2.4% CAGR.
In the fiscal fourth quarter, its cost of revenues increased 2.5% year over year due to rising production and shipping costs. General and administrative expenses rose 2.9% in the fourth quarter due to higher travel and training costs and consulting spending.
High debt levels also remain concerning for the company. Exiting fiscal 2024, its long-term debt was high at $1.6 billion. Considering its high debt profile, its cash and cash equivalents of $203.8 million does not seem impressive.
Key Picks
Some better-ranked companies from the same space are discussed below.
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BrightView Holdings, Inc. (BV - Free Report) currently carries a Zacks Rank #2 (Buy). BV delivered an earnings surprise of 3.2% in the last reported quarter.
In the past 60 days, the consensus estimate for BrightView’s fiscal 2024 (ending September 2024) earnings has increased 1.3%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 (ending June 2025) earnings has increased 0.6%.
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Cimpress Stock Gains From Business Strength Despite Headwinds
Cimpress plc (CMPR - Free Report) is witnessing solid momentum across its Vista, National Pen and Upload & Print segments. Significant growth in the e-commerce channels is driving the National Pen segment while increasing order rates is proving beneficial for the Upload & Print segment. The company’s focus on improving the customer experience and new product introductions are aiding its Vista segment.
In the fourth quarter of fiscal 2024, (ended June 30, 2024) the Vista segment’s revenues grew 8% year over year. In the same quarter, the Upload & Print segment’s revenues rose 6% year over year while the same for National Pen grew 1%.
The scale of Cimpress’ operation gives small business customers access to quality products and printing services, which would otherwise have been out of reach. The company has expanded its product line to include a wide variety of offerings for customers' marketing needs. Also, the PrintBrothers' businesses continue to adopt technologies that are part of the CMPR’s mass customization platform.
CMPR remains focused on cost-control measures that have been driving its margins and profitability. In the fiscal fourth quarter, its gross margin increased 100 basis points year over year. Also, the adjusted EBITDA margin was in line with the year-ago quarter’s level.
CMPR Stock’s Price Performance
Image Source: Zacks Investment Research
In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 19.5% compared with the industry’s 18.2% growth.
However, the company has been witnessing the adverse impacts of the high costs and operating expenses. From fiscal 2020 to fiscal 2024, its cost of sales witnessed a 6.3% CAGR (Compounded Annual Growth Rate), while selling, general and administrative expenses witnessed a 2.4% CAGR.
In the fiscal fourth quarter, its cost of revenues increased 2.5% year over year due to rising production and shipping costs. General and administrative expenses rose 2.9% in the fourth quarter due to higher travel and training costs and consulting spending.
High debt levels also remain concerning for the company. Exiting fiscal 2024, its long-term debt was high at $1.6 billion. Considering its high debt profile, its cash and cash equivalents of $203.8 million does not seem impressive.
Key Picks
Some better-ranked companies from the same space are discussed below.
Monro, Inc. (MNRO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Monro’s fiscal 2025 earnings has increased 19%. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BrightView Holdings, Inc. (BV - Free Report) currently carries a Zacks Rank #2 (Buy). BV delivered an earnings surprise of 3.2% in the last reported quarter.
In the past 60 days, the consensus estimate for BrightView’s fiscal 2024 (ending September 2024) earnings has increased 1.3%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 (ending June 2025) earnings has increased 0.6%.