LSE:ESNT

Stock Analysis Report

Executive Summary

Essentra plc manufactures and sells specialist plastic, fiber, foam, and packaging products worldwide.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.5%

ESNT

2.6%

GB Chemicals

2.0%

GB Market


1 Year Return

15.6%

ESNT

-16.8%

GB Chemicals

3.3%

GB Market

Return vs Industry: ESNT exceeded the UK Chemicals industry which returned -16.8% over the past year.

Return vs Market: ESNT exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

ESNTIndustryMarket
7 Day4.5%2.6%2.0%
30 Day2.4%-9.1%-1.0%
90 Day0.5%-9.2%-1.7%
1 Year21.3%15.6%-13.5%-16.8%8.3%3.3%
3 Year-7.7%-19.2%-5.4%-13.0%19.0%4.5%
5 Year-24.1%-36.8%35.2%14.0%38.4%8.4%

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

28.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ESNT (£4.28) is trading above our estimate of fair value (£4.17)

Significantly Undervalued: ESNT is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ESNT is poor value based on its PE Ratio (28.1x) compared to the Chemicals industry average (19x).

PE vs Market: ESNT is poor value based on its PE Ratio (28.1x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: ESNT is poor value based on its PEG Ratio (3.8x)


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Essentra expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ESNT's forecast earnings growth (7.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ESNT's earnings (7.4% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: ESNT's earnings are forecast to grow, but not significantly.

Revenue vs Market: ESNT's revenue (0.9% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: ESNT's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ESNT's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Essentra performed over the past 5 years?

-30.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ESNT's earnings have declined by -30.5% per year over the past 5 years.

Accelerating Growth: ESNT's earnings growth over the past year (827.9%) exceeds its 5-year average (-30.5% per year).

Earnings vs Industry: ESNT earnings growth over the past year (827.9%) exceeded the Chemicals industry -3.5%.


Return on Equity

High ROE: ESNT's Return on Equity (7.7%) is considered low.


Return on Assets

ROA vs Industry: ESNT's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: ESNT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Essentra's financial position?


Financial Position Analysis

Short Term Liabilities: ESNT's short term assets (£503.1M) exceeds its short term liabilities (£326.9M)

Long Term Liabilities: ESNT's short term assets (503.1M) exceeds its long term liabilities (447.1M)


Debt to Equity History and Analysis

Debt Level: ESNT's debt to equity ratio (67.4%) is considered high

Reducing Debt: ESNT's debt to equity ratio has increased from 62.6% to 67.4% over the past 5 years.

Debt Coverage: ESNT's debt is well covered by operating cash flow (24.7%).

Interest Coverage: ESNT's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: ESNT has a high level of physical assets or inventory.

Debt Coverage by Assets: ESNT's debt is covered by short term assets (assets are 1.313920x debt).


Next Steps

Dividend

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

4.84%

Expected Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.0%markettop25%5.4%industryaverage2.9%forecastin3Years4.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ESNT's dividend (4.84%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: ESNT's dividend (4.84%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: ESNT's dividends per share have been stable in the past 10 years.

Growing Dividend: ESNT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.9%), ESNT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ESNT's dividends in 3 years are forecast to be covered by earnings (82% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Paul Forman (54yo)

2.8yrs

Tenure

UK£1,420,000

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 ($USD1.80M) is about average for companies of similar size in the UK market ($USD1.88M).

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


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: ESNT's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

66yo

Average Age

Experienced Board: ESNT's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£1,23106 Jun 19
Margaret Trainer
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares310
Max PriceUK£3.97
BuyUK£53102 Nov 18
Margaret Trainer
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares139
Max PriceUK£3.82
BuyUK£74,10029 Oct 18
Paul Forman
EntityIndividual
Role
Chief Executive Officer
Chief Executive & Executive Director
Shares20,000
Max PriceUK£3.71
BuyUK£17,04024 Oct 18
Ralf Wunderlich
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceUK£3.41
BuyUK£35,21023 Oct 18
Ralf Wunderlich
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceUK£3.52

Ownership Breakdown


Management Team

  • Paul Forman (54yo)

    Chief Executive & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.42m
  • Jo Speed

    Investor Relations Director

    • Tenure: 0yrs
  • Jon Green

    Company Secretary & General Counsel

    • Tenure: 14.3yrs
  • Iain Percival

    Managing Director of Packaging

    • Tenure: 2.6yrs
  • Richard Cammish (52yo)

    Chief Information Officer

    • Tenure: 2.3yrs
  • Lucy Yank

    Group Communications Director

    • Tenure: 0yrs
  • Scott Fawcett

    Managing Director of Components

    • Tenure: 9.8yrs
  • Lily Liu

    CFO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£350.95k
  • Oshin Cassidy

    Group Human Resources Director

    • Tenure: 0.8yrs
  • Nick Pennell

    Group Operations Director

    • Tenure: 2yrs

Board Members

  • Paul Forman (54yo)

    Chief Executive & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.42m
  • Tommy Breen (60yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£57.00k
  • Paul Lester (69yo)

    Non-Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: UK£250.00k
  • Margaret Trainer (67yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£63.00k
  • Ralf Wunderlich

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£52.00k
  • Mary Reilly (66yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£52.00k
  • Lily Liu

    CFO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£350.95k
  • Nicki Demby

    Non-Executive Director

    • Tenure: 0.3yrs

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£1.121b
  • Shares outstanding: 262.08m
  • 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
ESNT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 2005

Biography

Essentra plc manufactures and sells specialist plastic, fiber, foam, and packaging products worldwide. It operates through four divisions: Component, Packaging, Filter Products, and Specialist Components.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 20:56
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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