Essendant Inc Stock Analysis, Valuation (NASDAQ:ESND)

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$9.4 $0.04 (0.42%) ESND stock closing price Apr 23, 2018 (Closing)
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Essendant Inc
Updated on : Apr 23, 2018
previous close
ESND 9.4 (0%)
S&P 500 2670.3 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Consumer Discretionary-Misc
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.2%
Operating Profit
Operating Margin:
-4.8%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
498.1M
Debt/Equity Ratio:
 1.01
Compared to the industry
Cash Flow
Operating cash flow:
-$19.5M
Net Income:
-$1.6M
Dividend Yield
ESND dividend yield:
5.96%
PROS      CONS
High Dividend Yield
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ESND PS :
0.1
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-20.5%
Return on Equity:
-44.9%
Free Cash Flow Margin:
-2.8%
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Essendant Inc Stock Analysis

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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 1.8/5

Amigobulls ESND stock analysis relies on business fundamentals such as Essendant Inc revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 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?

  • ESND stock is trading at an earnings multiple of 14 which is better than the industry average of 21.6.
  • The lower PS ratio 0.1 for ESND stock versus Consumer Discretionary-Misc industry average of 1.6 is a positive for the company.
  • Essendant Inc's dividend yield of 5.96% is attractive.

Should you sell ESND stock?

  • Essendant Inc revenue saw a decline of -4.5% YoY in 2017 Q4.
  • 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 -4.8%.
  • Over the last 12 months, Essendant Inc had an average Net loss of -5.3%.
  • Essendant Inc is debt laden and has a high debt/equity ratio of  1.01.
  • Essendant Inc has a negative ROIC (Return on Invested Capital) of -20.5%.
  • Essendant Inc has a negative ROE (Return On Equity) of -44.9%, indicating the company is not profitable.
  • The company has a negative free cash flow margin of -2.8%.

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.