EFII

Electronics For Imaging Inc

TMT


Presented:12/18/2017
Price:$29.67
Cap:$1.39B
Current Price:no data
Cap:no data

Presented

Date12/18/2017
Price$29.67
Market Cap$1.39B
Ent Value$1.94B
P/E Ratio44.95x
Book Value$18.06
Div Yield0%
Shares O/S46.94M
Ave Daily Vol741,521
Short Int10.94%

Current

Priceno data
Market Capno data
Electronics For Imaging, Inc. is a digital printing company. The company is focused on the transformation of the printing, packaging, and ceramic tile decorative industries from the use of traditional analog based presses to digital on demand printing. It operates through three segments: Industrial Inkjet, Productivity Software, and Fiery. The Industrial Inkjet segment products consist of VUTEk super wide and EFI wide format industrial digital inkjet printers, jetrion label and packaging digital inkjet printing systems, cretaprint digital inkjet printers for ceramic tile decoration, and related ink, parts, and services. The Productivity Software segment engages in the business of process automation software, including monarch, PSI, logic, printsmith, and printflow, radius, printstream, prism, metrics, technique, and alphagraph. The Fiery segment brand consists of print servers, controllers, and DFEs, which transforms digital copiers and printers into networked printing devices for the office and commercial printing market. The company was founded in 1988 and is headquartered in Fremont, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Danaher Corporation (DHR), Dover Corporation (DOV), Electronics for Imaging Inc (EFII), HP Inc (HPQ), Procter & Gamble Co (PG)

Highlights

The presenter is long shares of EFI, Electronics for Imaging (EFII) at ~$30, and sees upside potential for shareholders who are willing to either a) actively manage the position, or b) endure substantial volatility over a longer-term. The market opportunity for EFI’s Nozomi platform, which is used for printing on corrugated boxes, is “too big to fail”. If management can execute, EFI could see $200-300mm of incremental revenue as companies look to advertise on the boxes used to ship purchased goods to consumers. And, in this scenario, he can relatively easily model out $3-4 of annual EPS (up from a base of ~$2.10 per share), and a $50-60 price objective over 12-24 months; however, the road could be [very] “bumpy”.

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Idea Discussion

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