NasdaqGS:ESND

Stock Analysis Report

Executive Summary

Essendant Inc. operates as a distributor of workplace items in the United States and internationally.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.

Risks

  • Essendant is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

NasdaqGS:ESND

-0.4%

US Commercial Services

-1.0%

US Market


1 Year Return

46.1%

NasdaqGS:ESND

5.9%

US Commercial Services

-0.4%

US Market

ESND outperformed the Commercial Services industry which returned -1.5% over the past year.

ESND outperformed the Market in United States of America which returned -7% over the past year.


Share holder returns

ESNDIndustryMarket
7 Day2.6%-0.4%-1.0%
30 Day1.7%-1.4%-3.3%
90 Day0.5%3.7%0.8%
1 Year53.8%46.1%9.9%5.9%1.9%-0.4%
3 Year-48.8%-54.5%64.2%53.2%39.4%30.4%
5 Year-62.6%-67.8%96.4%76.7%54.2%37.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Essendant's share price is below the future cash flow value, and at a moderate discount (> 20%).

Essendant's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Essendant is loss making, we can't compare its value to the US Commercial Services industry average.

Essendant is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Essendant, we can't assess if its growth is good value.


Price Based on Value of Assets

Essendant is good value based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

169.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Essendant's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Essendant's earnings are expected to grow significantly at over 20% yearly.

Essendant's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Essendant's earnings growth is expected to exceed the United States of America market average.

Essendant's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Essendant will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Essendant performed over the past 5 years?

-64.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 US Commercial Services industry average as it is not currently profitable.


Return on Equity

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.


Return on Assets

It is difficult to establish if Essendant has efficiently used its assets last year compared to the US Commercial Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

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.


Next Steps

Financial Health

How is Essendant's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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

4.38%

Current Dividend Yield


Dividend Yield and Payments Analysis

Essendant's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).

Essendant's dividend is above the markets top 25% of dividend payers in United States of America (3.7%).

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

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.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Ric Phillips (47yo)

1.3yrs

Tenure

US$2,111,831

Compensation

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 Offic ...


CEO Compensation Analysis

Ric's remuneration is higher than average for companies of similar size in United States of America.

Ric's compensation has increased whilst company is loss making.


Management Age and Tenure

2.5yrs

Average Tenure

51yo

Average Age

The tenure for the Essendant management team is about average.


Board Age and Tenure

6.4yrs

Average Tenure

57.5yo

Average Age

The tenure for the Essendant board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

SellUS$6,557,65731 Jan 19
Pzena Investment Management, Inc
EntityCompany
Shares515,675
Max PriceUS$12.80
SellUS$14,147,62715 Jan 19
Pzena Investment Management, Inc
EntityCompany
Shares1,121,666
Max PriceUS$12.67
SellUS$7,410,66317 Dec 18
Pzena Investment Management, Inc
EntityCompany
Shares587,194
Max PriceUS$12.66
SellUS$7,461,38403 Dec 18
Pzena Investment Management, Inc
EntityCompany
Shares588,266
Max PriceUS$12.72
SellUS$6,470,77017 Sep 18
Pzena Investment Management, Inc
EntityCompany
Shares407,892
Max PriceUS$16.63

Ownership Breakdown


Management Team

  • Joan Burke

    Senior Vice President of Operations & Logistics

    • Tenure: 0.1yrs
  • Janet Zelenka (59yo)

    Senior VP

    • Tenure: 1.8yrs
    • Compensation: $1.54m
  • Christine Ieuter

    VP, Controller & Chief Accounting Officer

    • Tenure: 4.6yrs
  • Ric Phillips (47yo)

    President

    • Tenure: 1.3yrs
    • Compensation: $2.11m
  • Brendan McKeough (51yo)

    Senior VP

    • Tenure: 5.8yrs
  • Liz Meloy (40yo)

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 2.5yrs
  • Carole Tomko (63yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 4.8yrs
    • Compensation: $1.23m
  • Keith Dougherty (47yo)

    Senior Vice President of Merchandising

    • Tenure: 2.5yrs
    • Compensation: $1.71m
  • Ryon Wharton

    Vice President of Finance & Investor Relations

  • Harry Dochelli (59yo)

    President of Business Office & Facilities

    • Tenure: 2.5yrs
    • Compensation: $1.34m

Board Members

  • Sue Riley (59yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: $221.93k
  • Chuck Crovitz (64yo)

    Chairman & Lead Independent Director

    • Tenure: 7.2yrs
    • Compensation: $334.39k
  • Dennis Martin (67yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: $206.22k
  • Stuart Taylor (57yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: $221.95k
  • Paul Williams (58yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: $210.53k
  • Alex Zoghlin (48yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: $212.88k
  • Alexander Schmelkin (42yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: $214.94k
  • Ric Phillips (47yo)

    President

    • Tenure: 1.3yrs
    • Compensation: $2.11m

Company Information

Essendant Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Essendant Inc.
  • Ticker: ESND
  • Exchange: NasdaqGS
  • Founded: 1922
  • Industry: office services and supplies
  • Sector: commercial services
  • Market Cap: US$481.815m
  • Shares outstanding: 37.64m
  • Website: Click here

Number of Employees


Location

  • Essendant Inc.
  • One Parkway North Boulevard
  • Suite 100
  • Deerfield
  • Illinois
  • 60015
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESNDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1995
US3DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1995

Biography

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 secu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/02/01 01:22
End of Day Share Price2019/01/30 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.