Loading...

Essendant

DB:US3
Snowflake Description

Unattractive dividend payer with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
US3
DB
$482M
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

Essendant Inc. operates as a distributor of workplace items in the United States and internationally. The last earnings update was 99 days ago. More info.


Add to Portfolio Compare Print
US3 Share Price and Events
7 Day Returns
1.3%
DB:US3
2.2%
DE Commercial Services
0.2%
DE Market
1 Year Returns
53.6%
DB:US3
-13.3%
DE Commercial Services
-15.7%
DE Market
US3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Essendant (US3) 1.3% 2.4% 0.5% 53.6% -56.7% -
DE Commercial Services 2.2% 8.2% -11.1% -13.3% -2.6% -45.2%
DE Market 0.2% 5.5% -3.4% -15.7% 11.2% 8.2%
1 Year Return vs Industry and Market
  • US3 outperformed the Commercial Services industry which returned -13.3% over the past year.
  • US3 outperformed the Market in Germany which returned -15.7% over the past year.
Price Volatility
US3
Industry
5yr Volatility vs Market

US3 Value

 Is Essendant undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Essendant to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Essendant.

DB:US3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 12.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:US3
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 9.8%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.688 (1 + (1- 21%) (107.91%))
1.274
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.274 * 9.77%)
12.68%

Discounted Cash Flow Calculation for DB:US3 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Essendant is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:US3 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 58.96 58.65 58.34 58.03 57.73
Source Est @ -0.52% Est @ -0.52% Est @ -0.52% Est @ -0.52% Est @ -0.52%
Present Value
Discounted (@ 12.68%)
52.32 46.19 40.78 36.00 31.78
Present value of next 5 years cash flows $207.08
DB:US3 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $57.73 × (1 + 0.23%) ÷ (12.68% – 0.23%)
$464.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $464.70 ÷ (1 + 12.68%)5
$255.83
DB:US3 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $207.08 + $255.83
$462.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $462.90 / 37.64
$10.63
DB:US3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:US3 represents 0.86407x of NasdaqGS:ESND
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.86407x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 12.30 x 0.86407
€10.63
Value per share (EUR) From above. €10.63
Current discount Discount to share price of €11.06
= -1 x (€11.06 - €10.63) / €10.63
-4.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Essendant is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Essendant's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Essendant's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:US3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $-1.56
NasdaqGS:ESND Share Price ** NasdaqGS (2019-01-31) in USD $12.8
Europe Commercial Services Industry PE Ratio Median Figure of 104 Publicly-Listed Commercial Services Companies 15.85x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 17.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Essendant.

DB:US3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ESND Share Price ÷ EPS (both in USD)

= 12.8 ÷ -1.56

-8.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essendant is loss making, we can't compare its value to the Europe Commercial Services industry average.
  • Essendant is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Essendant's expected growth come at a high price?
Raw Data
DB:US3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -8.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Europe Commercial Services Industry PEG Ratio Median Figure of 53 Publicly-Listed Commercial Services Companies 1.2x
Germany Market PEG Ratio Median Figure of 276 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Essendant, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Essendant's assets?
Raw Data
DB:US3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $11.51
NasdaqGS:ESND Share Price * NasdaqGS (2019-01-31) in USD $12.8
Germany Commercial Services Industry PB Ratio Median Figure of 8 Publicly-Listed Commercial Services Companies 1.74x
Germany Market PB Ratio Median Figure of 568 Publicly-Listed Companies 1.81x
DB:US3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ESND Share Price ÷ Book Value per Share (both in USD)

= 12.8 ÷ 11.51

1.11x

* Primary Listing of Essendant.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essendant is good value based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess Essendant's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Essendant has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

US3 Future Performance

 How is Essendant expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Essendant has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
50%
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Essendant expected to grow at an attractive rate?
  • Unable to compare Essendant's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Essendant's earnings growth to the Germany market average as no estimate data is available.
  • Unable to compare Essendant's revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:US3 Future Growth Rates Data Sources
Data Point Source Value (per year)
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 50%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:US3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:US3 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
DB:US3 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 4,987 27 -58
2018-06-30 5,002 83 -135
2018-03-31 5,008 111 -130
2017-12-31 5,037 186 -267
2017-09-30 5,094 230 -268
2017-06-30 5,192 273 -149
2017-03-31 5,286 195 -141
2016-12-31 5,369 131 64
2016-09-30 5,412 85 -30
2016-06-30 5,396 26 -39
2016-03-31 5,383 89 -22
2015-12-31 5,363 163 -44

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Essendant is high growth as no earnings estimate data is available.
  • Unable to determine if Essendant is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:US3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Essendant Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:US3 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
DB:US3 Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 -1.56
2018-06-30 -3.66
2018-03-31 -3.53
2017-12-31 -7.27
2017-09-30 -7.30
2017-06-30 -4.07
2017-03-31 -3.86
2016-12-31 1.75
2016-09-30 -0.81
2016-06-30 -1.05
2016-03-31 -0.59
2015-12-31 -1.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Essendant will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of US3’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Essendant's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Commercial Services companies here
  3. Essendant's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Essendant's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Essendant has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

US3 Past Performance

  How has Essendant performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Essendant's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Essendant does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Essendant's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Essendant's 1-year growth to the Europe Commercial Services industry average as it is not currently profitable.
Earnings and Revenue History
Essendant's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Essendant Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:US3 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 4,987.22 -57.58 630.55
2018-06-30 5,001.67 -135.02 629.06
2018-03-31 5,008.10 -129.83 634.18
2017-12-31 5,037.33 -266.98 641.54
2017-09-30 5,093.72 -267.79 645.99
2017-06-30 5,192.24 -149.11 623.81
2017-03-31 5,286.11 -141.27 628.18
2016-12-31 5,369.02 63.85 625.54
2016-09-30 5,411.65 -29.63 623.99
2016-06-30 5,395.69 -38.71 644.55
2016-03-31 5,382.97 -21.81 642.10
2015-12-31 5,363.05 -44.34 641.80
2015-09-30 5,398.80 73.56 638.07
2015-06-30 5,427.20 86.13 628.26
2015-03-31 5,405.44 84.25 613.94
2014-12-31 5,327.21 112.12 595.67
2014-09-30 5,217.76 124.17 576.68
2014-06-30 5,134.49 124.44 564.12
2014-03-31 5,088.95 131.15 566.27
2013-12-31 5,085.29 122.05 565.98
2013-09-30 5,105.73 121.97 574.43
2013-06-30 5,057.73 118.23 578.28
2013-03-31 5,058.94 110.59 573.21
2012-12-31 5,080.11 111.83 567.45
2012-09-30 5,037.42 106.84 549.70
2012-06-30 5,058.78 105.85 544.70
2012-03-31 5,039.70 103.66 538.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Essendant has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Essendant has efficiently used its assets last year compared to the Europe Commercial Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Essendant improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Essendant's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Essendant has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

US3 Health

 How is Essendant's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Essendant's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Essendant is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Essendant's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Essendant's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Essendant Company Filings, last reported 4 months ago.

DB:US3 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 433.17 519.95 31.31
2018-06-30 439.24 524.73 31.75
2018-03-31 441.35 536.43 30.97
2017-12-31 494.91 498.70 28.80
2017-09-30 509.88 459.26 29.09
2017-06-30 593.68 511.02 23.89
2017-03-31 590.61 571.50 22.64
2016-12-31 781.11 609.17 21.33
2016-09-30 782.63 620.19 22.65
2016-06-30 753.95 761.49 25.70
2016-03-31 734.51 754.73 35.43
2015-12-31 723.73 716.78 29.98
2015-09-30 832.59 667.45 28.05
2015-06-30 840.27 662.04 29.94
2015-03-31 828.40 685.26 23.63
2014-12-31 843.67 711.02 20.81
2014-09-30 863.57 545.90 24.84
2014-06-30 841.68 544.12 31.50
2014-03-31 830.00 562.56 26.96
2013-12-31 825.51 533.70 22.33
2013-09-30 796.15 507.49 30.14
2013-06-30 760.53 518.49 21.12
2013-03-31 755.13 537.89 20.52
2012-12-31 738.09 525.45 30.92
2012-09-30 710.78 457.53 21.15
2012-06-30 689.21 530.26 14.56
2012-03-31 682.62 518.98 11.20
  • Essendant's level of debt (120%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (63.8% vs 120% today).
  • Debt is not well covered by operating cash flow (5.3%, less than 20% of total debt).
  • Essendant is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Essendant's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Essendant has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

US3 Dividends

 What is Essendant's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.38%
Current annual income from Essendant dividends.
If you bought €2,000 of Essendant shares you are expected to receive €88 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Essendant's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.58%).
  • Essendant's dividend is above the markets top 25% of dividend payers in Germany (3.94%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:US3 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:US3 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
DB:US3 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-24 0.560 4.450
2018-07-26 0.560 4.059
2018-05-25 0.560 4.045
2018-02-16 0.560 6.369
2017-09-18 0.560 5.642
2017-07-12 0.560 4.546
2017-05-24 0.560 3.635
2017-02-23 0.560 3.600
2016-09-29 0.560 2.865
2016-07-15 0.560 2.769
2016-05-26 0.560 1.802
2016-02-11 0.560 1.828
2015-10-07 0.560 1.735
2015-07-15 0.560 1.618
2015-05-21 0.560 1.427
2015-02-12 0.560 1.374
2014-09-17 0.560 1.379
2014-07-17 0.560 1.388
2014-05-22 0.560 1.381
2014-02-20 0.560 1.411
2013-10-17 0.560 1.285
2013-07-26 0.560 1.331
2013-05-15 0.560 1.590
2013-02-21 0.560 1.554
2012-10-17 0.560 1.804
2012-07-12 0.520 2.007
2012-05-16 0.520 2.012
2012-02-24 0.520 1.788
2011-10-21 0.520 1.622
2011-07-15 0.520 1.745
2011-05-12 0.520 1.496
2011-03-01 0.520 1.482

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Essendant has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Essendant only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Essendant's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Essendant's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Essendant afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Essendant has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

US3 Management

 What is the CEO of Essendant's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ric Phillips
COMPENSATION $2,111,831
AGE 47
TENURE AS CEO 1.3 years
CEO Bio

Mr. Richard D. Phillips, also known as Ric, has been President, Chief Executive Officer and Director of Essendant Inc. since October 2017. Mr. Phillips served as Interim President and Chief Executive Officer of Essendant Inc. since June 13, 2017 until June 20, 2017. Mr. Phillips served as the Group President of Industrial Essentials (Formerly, ORS Industrial) at Essendant Inc. since November 12, 2015. He served as the President of ORS Nasco, Inc. since January 18, 2016. He served as the President of Online & New Channels at Essendant Inc. (also known as United Stationers Inc,) from January 2013 to November 12, 2015. Prior to joining Essendant, he spent 14 years at McKinsey & Company, where he was elected Partner in 2005. He spent six years at Baxter Healthcare in finance and sales, where he held roles of increasing responsibility in corporate finance and sales, including serving as a National Accounts Manager. He joined Essendant in early 2013. Prior to joining Essendant, he spent several years with McKinsey & Company in Chicago, where he worked with clients across the world in the healthcare and consumer industry sectors, with a functional emphasis in strategy, commercial performance and operations. He also served as co-leader of its Global Healthcare Operations practice. Mr. Phillips earned a B.S. degree in Finance from Indiana University and a Masters of Management degree, with distinction, from the Kellogg Business School at Northwestern University.

CEO Compensation
  • Ric's compensation has increased whilst company is loss making.
  • Ric's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Essendant management team in years:

2.5
Average Tenure
51
Average Age
  • The tenure for the Essendant management team is about average.
Management Team

Ric Phillips

TITLE
President
COMPENSATION
$2M
AGE
47
TENURE
1.3 yrs

Janet Zelenka

TITLE
Senior VP
COMPENSATION
$2M
AGE
59
TENURE
1.8 yrs

Carole Tomko

TITLE
Senior VP & Chief Human Resources Officer
COMPENSATION
$1M
AGE
63
TENURE
4.8 yrs

Keith Dougherty

TITLE
Senior Vice President of Merchandising
COMPENSATION
$2M
AGE
47
TENURE
2.5 yrs

Harry Dochelli

TITLE
President of Business Office & Facilities
COMPENSATION
$1M
AGE
59
TENURE
2.5 yrs

Joan Burke

TITLE
Senior Vice President of Operations & Logistics
TENURE
0.1 yrs

Christine Ieuter

TITLE
VP, Controller & Chief Accounting Officer
TENURE
4.6 yrs

Ryon Wharton

TITLE
Vice President of Finance & Investor Relations

Brendan McKeough

TITLE
Senior VP
AGE
51
TENURE
5.8 yrs

Liz Meloy

TITLE
Senior Vice President of Strategy & Corporate Development
AGE
40
TENURE
2.5 yrs
Board of Directors Tenure

Average tenure and age of the Essendant board of directors in years:

6.4
Average Tenure
57.5
Average Age
  • The tenure for the Essendant board of directors is about average.
Board of Directors

Chuck Crovitz

TITLE
Chairman & Lead Independent Director
COMPENSATION
$334K
AGE
64
TENURE
7.2 yrs

Ric Phillips

TITLE
President
COMPENSATION
$2M
AGE
47
TENURE
1.3 yrs

Stuart Taylor

TITLE
Director
COMPENSATION
$222K
AGE
57
TENURE
7.2 yrs

Alexander Schmelkin

TITLE
Director
COMPENSATION
$215K
AGE
42
TENURE
6.4 yrs

Sue Riley

TITLE
Director
COMPENSATION
$222K
AGE
59
TENURE
6.4 yrs

Paul Williams

TITLE
Director
COMPENSATION
$211K
AGE
58
TENURE
4.3 yrs

Dennis Martin

TITLE
Director
COMPENSATION
$206K
AGE
67
TENURE
2.6 yrs

Alex Zoghlin

TITLE
Director
COMPENSATION
$213K
AGE
48
TENURE
10.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
15. Jan 19 Sell Pzena Investment Management, Inc Company 17. Dec 18 14. Jan 19 -1,121,666 €11.04 €-12,326,827
17. Dec 18 Sell Pzena Investment Management, Inc Company 03. Dec 18 14. Dec 18 -587,194 €11.21 €-6,561,401
03. Dec 18 Sell Pzena Investment Management, Inc Company 01. Nov 18 30. Nov 18 -588,266 €11.23 €-6,589,894
17. Sep 18 Sell Pzena Investment Management, Inc Company 19. Jun 18 06. Sep 18 -407,892 €14.32 €-5,570,038
21. May 18 Buy Staples, Inc. Company 16. May 18 16. May 18 473,074 €10.61 €5,021,555
16. May 18 Buy Staples, Inc. Company 01. May 18 16. May 18 3,730,557 €9.62 €28,905,607
X
Management checks
We assess Essendant's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Essendant has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

US3 News

Simply Wall St News

US3 Company Info

Map
Description

Essendant Inc. operates as a distributor of workplace items in the United States and internationally. It offers janitorial and sanitation supplies, breakroom items, foodservice consumables, safety and security items, and paper and packaging supplies. The company also provides technology products, such as computer accessories, imaging supplies, and data storage products; and computer hardware, including printers and other peripherals. In addition, it offers traditional office products, including writing instruments, business machines, filing and record storage products, presentation products, shipping and mailing supplies, calendars, and general office accessories; and industrial supplies, such as hand and power tools, safety and security supplies, janitorial equipment, and oilfield and welding supplies, as well as industrial maintenance, repair, and operations items. Further, the company provides cut sheet paper products; automotive products; and desks, filing and storage solutions, and seating and systems furniture, as well as various products for education, government, healthcare, and professional services markets. It serves office and workplace dealers; facilities and maintenance distributors; technology, military, automotive aftermarket, healthcare, and other vertical suppliers; industrial resellers; national resellers; and resellers in the e-commerce channel. Essendant Inc. distributes its products through 70 distribution centers to approximately 29,000 reseller customers, as well as through online. The company was formerly known as United Stationers Inc. and changed its name to Essendant Inc. in June 2015. Essendant Inc. was founded in 1922 and is headquartered in Deerfield, Illinois.

Details
Name: Essendant Inc.
US3
Exchange: DB
Founded: 1922
$419,613,075
37,641,832
Website: http://www.essendant.com
Address: Essendant Inc.
One Parkway North Boulevard,
Suite 100,
Deerfield,
Illinois, 60015,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ESND Common Stock Nasdaq Global Select US USD 31. Mar 1995
DB US3 Common Stock Deutsche Boerse AG DE EUR 31. Mar 1995
Number of employees
Current staff
Staff numbers
6,400
Essendant employees.
Industry
Office Services and Supplies
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/01 22:43
End of day share price update: 2019/01/31 00:00
Last estimates confirmation: 2018/02/21
Last earnings filing: 2018/10/25
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.