LSE:ESNT

Stock Analysis Report

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Executive Summary

Essentra plc provides essential components and solutions worldwide. More Details


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

How has Essentra's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESNT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.4%

ESNT

-3.0%

GB Chemicals

-3.4%

GB Market


1 Year Return

-39.6%

ESNT

-4.3%

GB Chemicals

-19.7%

GB Market

Return vs Industry: ESNT underperformed the UK Chemicals industry which returned -2.2% over the past year.

Return vs Market: ESNT underperformed the UK Market which returned -16.4% over the past year.


Shareholder returns

ESNTIndustryMarket
7 Day-7.4%-3.0%-3.4%
30 Day-5.9%-0.9%-4.5%
90 Day-21.1%5.1%-5.1%
1 Year-39.6%-39.6%-2.7%-4.3%-16.6%-19.7%
3 Year-51.0%-55.4%-12.0%-19.3%-12.8%-23.6%
5 Year-66.8%-71.8%10.9%-5.2%9.9%-14.9%

Price Volatility Vs. Market

How volatile is Essentra's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Essentra undervalued compared to its fair value and its price relative to the market?

30.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESNT (£2.49) is trading below our estimate of fair value (£3.45)

Significantly Below Fair Value: ESNT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ESNT is poor value based on its PE Ratio (46.6x) compared to the GB Chemicals industry average (35.5x).

PE vs Market: ESNT is poor value based on its PE Ratio (46.6x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: ESNT is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ESNT is good value based on its PB Ratio (1.2x) compared to the GB Chemicals industry average (2x).


Next Steps

Future Growth

How is Essentra forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

58.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESNT's forecast earnings growth (58.5% per year) is above the savings rate (1.2%).

Earnings vs Market: ESNT's earnings (58.5% per year) are forecast to grow faster than the UK market (24.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ESNT's revenue (6.6% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: ESNT's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESNT's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Essentra performed over the past 5 years?

-7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESNT has a large one-off loss of £10.0M impacting its June 30 2020 financial results.

Growing Profit Margin: ESNT's current net profit margins (1.5%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: ESNT's earnings have declined by 7.1% per year over the past 5 years.

Accelerating Growth: ESNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ESNT had negative earnings growth (-64.9%) over the past year, making it difficult to compare to the Chemicals industry average (-18.3%).


Return on Equity

High ROE: ESNT's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Essentra's financial position?


Financial Position Analysis

Short Term Liabilities: ESNT's short term assets (£472.8M) exceed its short term liabilities (£235.4M).

Long Term Liabilities: ESNT's short term assets (£472.8M) do not cover its long term liabilities (£545.1M).


Debt to Equity History and Analysis

Debt Level: ESNT's debt to equity ratio (70.3%) is considered high.

Reducing Debt: ESNT's debt to equity ratio has increased from 66.1% to 70.3% over the past 5 years.

Debt Coverage: ESNT's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: ESNT's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Essentra current dividend yield, its reliability and sustainability?

3.58%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ESNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ESNT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ESNT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ESNT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ESNT is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ESNT's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Paul Forman (55 yo)

3.75yrs

Tenure

UK£1,368,000

Compensation

Mr. Paul A. Forman has been Chief Executive and Executive Director of Essentra plc since January 1, 2017. Mr. Forman has been Senior Independent Director at Tate & Lyle PLC since July 25, 2019. Mr. Forman ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.79M) is above average for companies of similar size in the UK market ($USD1.14M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Forman
Chief Executive & Executive Director3.75yrsUK£1.37m0.11%
£ 781.6k
Lily Liu
CFO & Executive Director1.92yrsUK£544.00kno data
Nick Pennell
Group Operations Director3yrsno datano data
Richard Cammish
Chief Information Officer3.33yrsno datano data
Aamir Mohiuddin
Director of Investor Relationsno datano datano data
Jon Green
Company Secretary & General Counsel15.25yrsno data0.028%
£ 198.6k
Lucy Yank
Group Communications Directorno datano datano data
Oshin Cassidy
Group Human Resources Director1.75yrsno datano data
Scott Fawcett
Managing Director of Components10.75yrsno data0.0093%
£ 66.1k
Iain Percival
Managing Director of Packaging3.58yrsno datano data
Kamal Taneja
Managing Director of Filters3yrsno datano data
Patricia Kendall
Deputy Company Secretary13.08yrsno datano data

3.5yrs

Average Tenure

Experienced Management: ESNT's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Forman
Chief Executive & Executive Director3.75yrsUK£1.37m0.11%
£ 781.6k
Lily Liu
CFO & Executive Director1.92yrsUK£544.00kno data
Tommy Breen
Senior Independent Non-Executive Director2.5yrsUK£61.00k0.0033%
£ 23.7k
Paul Lester
Independent Non-Executive Chairman4.5yrsUK£250.00k0.0038%
£ 26.8k
Ralf Wunderlich
Independent Non-Executive Director3.25yrsUK£57.00k0.052%
£ 367.6k
Mary Reilly
Independent Non-Executive Director3.25yrsUK£77.00k0.0031%
£ 22.3k
Nicole Demby
Independent Non-Executive Director1.33yrsUK£30.00k0.00089%
£ 6.3k

3.3yrs

Average Tenure

64yo

Average Age

Experienced Board: ESNT's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ESNT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.7%.


Top Shareholders

Company Information

Essentra plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Essentra plc
  • Ticker: ESNT
  • Exchange: LSE
  • Founded: 2005
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: UK£711.936m
  • Shares outstanding: 300.65m
  • Website: https://www.essentraplc.com

Number of Employees


Location

  • Essentra plc
  • Avebury House
  • 201-249 Avebury Boulevard
  • Milton Keynes
  • Buckinghamshire
  • MK9 1AU
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESNTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2005
HOFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2005
FLRA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2005
ESNTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2005

Biography

Essentra plc provides essential components and solutions worldwide. It operates through three divisions: Components, Packaging, and Filters. The Components division manufactures and distributes plastic inj ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 22:19
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.