Essentra plc

LSE:ESNT Stock Report

Market Cap: UK£435.0m

Essentra Valuation

Is ESNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ESNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ESNT (£1.52) is trading below our estimate of fair value (£1.72)

Significantly Below Fair Value: ESNT is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ESNT?

Key metric: As ESNT is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ESNT. This is calculated by dividing ESNT's market cap by their current revenue.
What is ESNT's PS Ratio?
PS Ratio1.4x
SalesUK£309.70m
Market CapUK£434.96m

Price to Sales Ratio vs Peers

How does ESNT's PS Ratio compare to its peers?

The above table shows the PS ratio for ESNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
ZTF Zotefoams
1.3x6.6%UK£168.7m
ITX Itaconix
3.4x31.5%UK£17.9m
SYNT Synthomer
0.1x5.0%UK£270.9m
ELM Elementis
1.4x3.4%UK£792.2m
ESNT Essentra
1.4x1.8%UK£435.0m

Price-To-Sales vs Peers: ESNT is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does ESNT's PS Ratio compare vs other companies in the GB Chemicals Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
JMAT Johnson Matthey
0.2x-43.3%US$3.31b
SYNT Synthomer
0.1x5.0%US$343.40m
CAR Carclo
0.2x7.0%US$31.18m
HEIQ HeiQ
0.2xn/aUS$9.61m
ESNT 1.4xIndustry Avg. 1.3xNo. of Companies6PS01.22.43.64.86+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ESNT is expensive based on its Price-To-Sales Ratio (1.4x) compared to the UK Chemicals industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is ESNT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ESNT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: ESNT is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ESNT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.52
UK£2.24
+47.9%
19.2%UK£3.15UK£1.85n/a6
Nov ’25UK£1.50
UK£2.24
+49.2%
19.2%UK£3.15UK£1.85n/a6
Oct ’25UK£1.50
UK£2.29
+52.8%
18.9%UK£3.15UK£1.85n/a6
Sep ’25UK£1.76
UK£2.63
+49.0%
12.9%UK£3.15UK£2.20n/a6
Aug ’25UK£1.71
UK£2.63
+54.0%
12.7%UK£3.15UK£2.20n/a6
Jul ’25UK£1.60
UK£2.65
+65.2%
12.4%UK£3.15UK£2.20n/a6
Jun ’25UK£1.65
UK£2.61
+58.0%
12.4%UK£3.15UK£2.20n/a7
May ’25UK£1.76
UK£2.61
+47.8%
12.4%UK£3.15UK£2.20n/a7
Apr ’25UK£1.76
UK£2.61
+48.3%
12.4%UK£3.15UK£2.20n/a7
Mar ’25UK£1.72
UK£2.63
+53.0%
11.8%UK£3.15UK£2.20n/a7
Feb ’25UK£1.72
UK£2.63
+52.5%
11.8%UK£3.15UK£2.20n/a7
Jan ’25UK£1.70
UK£2.61
+53.7%
12.1%UK£3.15UK£2.20n/a7
Dec ’24UK£1.53
UK£2.61
+70.8%
12.1%UK£3.15UK£2.20n/a7
Nov ’24UK£1.54
UK£2.61
+69.3%
12.1%UK£3.15UK£2.20UK£1.507
Oct ’24UK£1.62
UK£2.69
+66.4%
9.9%UK£3.15UK£2.30UK£1.507
Sep ’24UK£1.48
UK£2.68
+81.0%
10.1%UK£3.15UK£2.30UK£1.767
Aug ’24UK£1.58
UK£2.77
+75.0%
7.6%UK£3.15UK£2.55UK£1.717
Jul ’24UK£1.62
UK£2.77
+70.9%
7.6%UK£3.15UK£2.55UK£1.607
Jun ’24UK£1.81
UK£2.77
+53.3%
7.6%UK£3.15UK£2.55UK£1.657
May ’24UK£2.07
UK£2.80
+35.6%
7.6%UK£3.15UK£2.55UK£1.766
Apr ’24UK£1.93
UK£2.82
+45.8%
8.1%UK£3.15UK£2.55UK£1.765
Mar ’24UK£2.24
UK£2.98
+33.3%
3.8%UK£3.15UK£2.80UK£1.725
Feb ’24UK£2.19
UK£2.98
+36.1%
3.8%UK£3.15UK£2.80UK£1.725
Jan ’24UK£2.37
UK£3.03
+27.9%
2.5%UK£3.15UK£2.95UK£1.704
Dec ’23UK£2.49
UK£2.98
+20.1%
0.8%UK£3.00UK£2.95UK£1.533
Nov ’23UK£2.22
UK£2.90
+30.6%
3.7%UK£3.00UK£2.75UK£1.543

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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