NYSE:NP

Stock Analysis Report

Executive Summary

Neenah, Inc. produces and sells technical products, and fine paper and packaging products worldwide.

Rewards

Earnings grew by 49.7% over the past year

Pays a reliable dividend of 2.88%

Risk Analysis

Earnings have declined by -8.27% per year over past 5 years

Has a high level of debt



Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.7%

NP

-2.3%

US Forestry

0.5%

US Market


1 Year Return

-6.5%

NP

-8.6%

US Forestry

20.3%

US Market

Return vs Industry: NP exceeded the US Forestry industry which returned -8.6% over the past year.

Return vs Market: NP underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

NPIndustryMarket
7 Day-6.7%-2.3%0.5%
30 Day-1.9%-2.5%2.0%
90 Day-6.0%-1.4%9.4%
1 Year-4.0%-6.5%-5.8%-8.6%22.8%20.3%
3 Year-7.9%-14.0%6.6%-1.5%50.1%40.4%
5 Year18.5%6.5%-1.2%-13.0%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NP ($65.28) is trading above our estimate of fair value ($50.69)

Significantly Below Fair Value: NP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NP is poor value based on its PE Ratio (19.9x) compared to the Forestry industry average (18x).

PE vs Market: NP is poor value based on its PE Ratio (19.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NP is overvalued based on its PB Ratio (2.7x) compared to the US Forestry industry average (1.1x).


Next Steps

Future Growth

How is Neenah forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

66.8%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NP's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if NP's earnings are forecast to grow faster than the US market

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

Revenue vs Market: Insufficient data to determine if NP's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NP's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Neenah performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NP has high quality earnings.

Growing Profit Margin: NP's current net profit margins (5.9%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: NP's earnings have declined by -8.3% per year over the past 5 years.

Accelerating Growth: NP's earnings growth over the past year (49.7%) exceeds its 5-year average (-8.3% per year).

Earnings vs Industry: NP earnings growth over the past year (49.7%) exceeded the Forestry industry 1%.


Return on Equity

High ROE: NP's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Neenah's financial position?


Financial Position Analysis

Short Term Liabilities: NP's short term assets ($252.7M) exceed its short term liabilities ($100.4M).

Long Term Liabilities: NP's short term assets ($252.7M) do not cover its long term liabilities ($321.1M).


Debt to Equity History and Analysis

Debt Level: NP's debt to equity ratio (49.4%) is considered high.

Reducing Debt: NP's debt to equity ratio has reduced from 79% to 49.4% over the past 5 years.

Debt Coverage: NP's debt is well covered by operating cash flow (48.6%).

Interest Coverage: NP's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

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

Debt Coverage by Assets: NP's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

2.88%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NP's dividend (2.88%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: NP's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.5%), NP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

John O'Donnell (59yo)

8.8yrs

Tenure

US$2,963,120

Compensation

Mr. John P. O'Donnell has been the Chief Executive Officer and President at Neenah Paper, Inc., since May 18, 2011 and May 2011 respectively. Mr. O'Donnell serves as the Chief Executive Officer and Preside ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.96M) is about average for companies of similar size in the US market ($USD2.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John O'Donnell
CEO, President & Director8.8yrsUS$2.96m0.11% $1.2m
Bonnie Cruickshank-Lind
Senior VP15.7yrsUS$1.02m0.11% $1.2m
Julie Schertell
Senior VP0yrsUS$915.60k0.035% $389.7k
Byron Racki
Senior VP of Sales & Marketing and President of Fine Paper & Packaging0.08yrsUS$639.72k0.030% $331.6k
Lawrence Brownlee
Principal Accounting Officer15.6yrsno data0.098% $1.1m
Robert Conforti
Vice President of New Business & Technology Development0yrsno datano data
William McCarthy
Vice President of Financial Analysis & Investor Relations0yrsno datano data
Noah Benz
Senior VP1.5yrsno data0.010% $111.1k
Ronald Lane
Senior Vice President of Operations0.08yrsno datano data

1.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: NP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John O'Donnell
CEO, President & Director8.8yrsUS$2.96m0.11% $1.2m
Julie Schertell
Senior VP0yrsUS$915.60k0.035% $389.7k
William Cook
Independent Chairman of the Board0.8yrsUS$174.02k0.017% $188.0k
Margaret Dano
Independent Director4.9yrsUS$172.02k0.0077% $84.2k
Stephen Wood
Independent Director15.3yrsUS$206.02k0.21% $2.3m
Philip Moore
Independent Director15.3yrsUS$174.02k0.085% $931.0k
Timothy Lucas
Independent Director15.3yrsUS$206.02k0.093% $1.0m
Donna Costello
Independent Director0.3yrsno datano data
Tony Thene
Independent Director1yrsno datano data

7.1yrs

Average Tenure

60yo

Average Age

Experienced Board: NP's board of directors are considered experienced (7.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Neenah, Inc.
  • Ticker: NP
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$1.098b
  • Shares outstanding: 16.81m
  • Website: https://www.neenah.com

Number of Employees


Location

  • Neenah, Inc.
  • 3460 Preston Ridge Road
  • Suite 600
  • Alpharetta
  • Georgia
  • 30005
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2004
NQIDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2004

Biography

Neenah, Inc. produces and sells technical products, and fine paper and packaging products worldwide. Its Technical Products segment offers filtration media for transportation, water, and other uses; saturated and unsaturated crepe, and flat paper tapes; and coated lightweight abrasive papers for automotive, construction, metal, and woodworking industries. It also provides digital image transfer media; label and tag products for digital printing; latex saturated and coated, premask, medical packaging, digital transfer, publishing, security, clean room and durable printing, and release papers; and furniture backers. The company's Fine Paper and Packaging segment provides writing, text, cover, and specialty papers; and envelopes used in commercial printing services, corporate identity packages, and advertising collaterals. It also provides packaging products for retail, cosmetics, spirits, and electronics end-use markets; bright papers for direct mails, advertising inserts, scrapbooks, and marketing collaterals; business papers for professionals and small businesses; translucent and art papers; and papers for optical scanning and other specialized applications. Its Other segment offers papers for end uses, such as covering materials for datebooks, diaries, yearbooks, and photo albums. The company markets its products under the JET-PRO SofStretch, KIMDURA, PREVAIL, NEENAH, GESSNER, CLASSIC, CLASSIC CREST, ESSE, ENVIRONMENT, CAPITOL BOND, ROYAL SUNDANCE, SOUTHWORTH, TOUCHE, CRANE'S CREST, CRANE'S BOND, CRANE'S LETTRA, SO...SILK, PLIKE, STARDREAM, Neenah Wide Format, CONVERD, ESTATE LABEL, PELLAQ, KIVAR, SKIVERTEX, ILLUSIO, SENZO, ASTROBRIGHTS, NEENAH IMAGEMAX, and CREATIVE COLLECTION names through authorized paper distributors, converters, retailers, and specialty businesses; and directly. The company was formerly known as Neenah Paper, Inc. and changed its name to Neenah, Inc. in January 2018. Neenah, Inc. was founded in 2004 and is headquartered in Alpharetta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:53
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
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.