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Cimpress (CMPR) Shows Promise with Holistic Growth

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On May 31, Zacks Investment Research updated the research report on business services provider Cimpress N.V. (CMPR - Free Report) .

Cimpress is an online supplier of high-quality graphic design services and customized printed products. The company offers a wide range of products to small businesses and consumers, including business cards, brochures, invitations, thank you notes, calendars, address labels, note pads and signage. With the use of proprietary web-based design software and advanced computer integrated printing facilities, Cimpress enjoys a competitive advantage over traditional graphic design and printing methods.

The company is currently shifting its value proposition away from deep discounts and free-offer direct marketing efforts to tap market opportunities beyond the traditional base of highly price-sensitive customers. The company is forging ahead with its business initiatives, making good progress with investments in new markets, focusing on higher quality products and delivery, enhancing customer service and ensuring transparent pricing to promote long-term customer relationships.

Cimpress’ scale of operations gives small business customers access to quality products and printing services. The company has expanded its product line to include a wide variety of offerings for its customers’ marketing needs. Due to the high volume of orders placed through its systems each day, Cimpress is able to execute multiple orders in one print run. This allows the company to use high-end printing presses that would normally be uneconomic for small batch printing jobs. The company is also focusing on digital marketing services like email, online search and social media marketing.

In addition, Cimpress has been acquiring firms with complementary product offerings and expects to ramp up revenues with operating synergies through economies of scale and technological collaboration to serve a wide spectrum of customers across the globe.

However, despite enjoying a leading position in the industry, Cimpress faces significant competition from traditional graphic design and printing companies and other online suppliers. Moreover, advanced desktop publishing software and more efficient desktop printers offer small businesses another cost-effective solution for their marketing needs. While these sources cannot meet the breadth of product offerings provided by Cimpress, they can handle the day-to-day marketing needs of small business customers. This could hurt top-line growth atthe company.

Nevertheless, we remain impressed by the inherent growth potential of this Zacks Rank #1 (Strong Buy) stock. Other favorably placed stocks in the industry include Accenture plc (ACN - Free Report) , CBIZ, Inc. (CBZ - Free Report) and CEB Inc. , each carrying a Zacks Rank #2 (Buy).

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