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Cimpress Exhibits Strong Prospects Despite Persisting Headwinds

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Key Takeaways

  • Cimpress sees growth in Vista, National Pen, and Upload & Print from rising demand and orders.
  • Restructuring efforts and product innovation aim to boost efficiency and customer value.
  • Higher costs and inflation caused lower margins in fiscal 2025, raising profitability concerns.

Cimpress plc (CMPR - Free Report) is benefiting from solid momentum across its Vista, National Pen and Upload & Print segments. An increase in demand for product categories like promotional products, apparel and gifts, signage and packaging and labels is aiding the Vista segment. An increase in order volume and average order values is supporting the segment’s results. Significant growth in telesales and e-commerce revenues is driving the National Pen segment. In the same period, the Upload & Print segment’s revenues were supported by increasing order rates and new customer growth.

Cimpress’ scale allows small businesses to access high-quality products and printing services that may otherwise be out of reach. Its product portfolio has expanded to cover a wide range of marketing needs, while PrintBrothers’ businesses continue to adopt technologies from the company’s mass customization platform. Also, Cimpress is restructuring its operations by consolidating product development teams that were previously engaged in overlapping activities. These measures are expected to enhance customer value and drive long-term business efficiency.

The company’s emphasis on customer service, backed by efficient operations, strong supply-chain management and continuous product innovation, positions it well for growth. Despite cost inflation, pricing actions are expected to drive its performance in the quarters ahead. The company also targets to maintain crucial growth investments while working toward its net leverage target of 2.5x trailing-12-month EBITDA.

CMPR’s Price Performance

In the past month, this Zacks Rank #3 (Hold) company’s shares gained 17.2% against the industry’s 1.8% decline.

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However, escalating costs and expenses have been a concern for CMPR over time. In fiscal 2025 (ended June 30, 2025), the cost of revenues increased 5.3% on a year-over-year basis due to increasing production and shipping costs. The metric, as a percentage of net revenues, increased 100 basis points to 52.5%. Also, selling, general and administrative expenses grew 3.7% year over year in the same period due to higher long-term incentive compensation and cash compensation costs. The company is persistently bearing the brunt of input cost inflation. In the fourth quarter of fiscal 2025, Cimpress’ gross profit margin decreased approximately 110 basis points to 47.5%. Escalation in costs, if not controlled, can severely affect margins and profitability in the quarters ahead.

Cimpress operates across diverse regions, which exposes it to certain political, environmental and geopolitical issues. Moreover, it remains vulnerable to currency translation risks, which may affect its performance in the quarters ahead. A stronger U.S. dollar may depress the company's overseas business results in the near term.

Stocks to Consider

Some better-ranked companies are discussed below.

Flowserve Corporation (FLS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FLS delivered a trailing four-quarter average earnings surprise of 5.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 5.6%.

Crane Company (CR - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 7.5%.

In the past 60 days, the consensus estimate for CR’s 2025 earnings has increased 4%.

DNOW Inc. (DNOW - Free Report) presently carries a Zacks Rank of 2. DNOW delivered a trailing four-quarter average earnings surprise of 44.1%.

In the past 60 days, the consensus estimate for DNOW’s 2025 earnings has increased 9.2%.


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