Essendant Inc Stock Analysis, Valuation (NASDAQ:ESND)

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$12.81 $0.1 (0.79%) ESND stock closing price Sep 18, 2018 (Closing)

Take a look at Amigobulls Essendant Inc stock analysis video. This is our analyst opinion covering the buy and sell arguments for ESND stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Essendant Inc Stock Rating 1.4/5

Amigobulls ESND stock analysis relies on business fundamentals such as Essendant Inc revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Essendant Inc valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Essendant Inc stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy ESND stock?

  • The lower PS ratio 0.1 for ESND stock versus Consumer Discretionary sector average of 1.6 is a positive for the company.

Should you sell ESND stock?

  • Essendant Inc sales shrank by -0.5% year-over-year in 2018-06.
  • The company saw an average annual sales decline of -0.2 in sales over the last 5 years.
  • Over the last twelve months, Essendant Inc posted an average operating loss margin of -2.46.
  • Essendant Inc registered an average TTM Net loss of -2.7%.
  • Essendant Inc has a debt/equity ratio of 1.2, which is worse than the average in the Consumer Discretionary sector.
  • Trading at a PE ratio of 85.4, ESND stock is overvalued in comparison to sector average multiple of 21.5.
  • -10.4's negative ROIC of -10.4 indicates operational inefficiency.
  • Essendant Inc has a negative return on equity of -27.2. This indicates that the firm is inefficient at generating profits.

Comments on this video and Essendant Inc stock

Amigobulls Essendant Inc stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Essendant Inc revenue growth and profit or net income are two main metrics which help in identifying whether ESND stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about ESND stock.