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What Does Cimpress’ Newly Added Risk Factor Tell Investors?

Cimpress NV (CMPR) is an American, Irish-domiciled company, which invests in and operates a variety of businesses that use mass customization. Its businesses include Vistaprint, PrintBrothers and National Pen.

Let’s look at Cimpress’ latest financial performance, corporate developments and newly added risk factors. (See Cimpress stock charts on TipRanks).

Cimpress’ Fiscal 2021 Q4 Results

Revenue of the company increased 49% year-over-year to $641.02 million in the fourth quarter of fiscal 2021 ended June 30. The bulk of the revenue came from the Vistaprint business whose sales increased to $351.75 million from $244.51 million a year ago.

Meanwhile, the company posted a loss per share of $2.31, compared to a loss of $1.62 per share in the same quarter last year. Cimpress ended the quarter with $183.02 million in cash.

Corporate Developments

Vistaprint recently partnered with Wix (WIX) to enable its small business customers to grow their business online. Vistaprint serves more than 17 million customers. It aims to be the go-to expert marketing and design partner for small businesses, and the Wix alliance marks a significant step in that effort.

Risk Factors

The new TipRanks’ Risk Factors tool shows 34 risks for Cimpress. In its Fiscal 2021 annual report, the company has added one risk factor and removed eight risks.

The newly added risk factor falls under the Production category and relates to the competition for the top talent. Cimpress tells investors that its success depends on its ability to hire and retain talented staff in key roles. The company adds that it faces tough competition for the top talent, making it difficult to retain existing staff and recruit new ones. The company cautions that it may be unable to grow its business as planned if it cannot hire or retain talented personnel in key roles like technology and marketing.

The Finance and Corporate risk category’s sector average is at 37%, compared to Cimpress’ 35%. Shares of the company have declined about 2% year-to-date.

Analyst’s Take

Last month, Barrington analyst Kevin Steinke reiterated a Buy rating on the stock with a price target of $115. Steinke’s price target suggests 33.63% upside potential.

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