Fred Lum for The Globe and Mail
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Formerly United Stationers, Essendant Inc. is a wholesale distributor of workplace essentials, with more than 160,000 products in categories including technology products, traditional office products, office furniture, janitorial and breakroom supplies, industrial supplies, and automotive aftermarket tools and equipment. It sells its products through a national distribution network of around 77 distribution centers to over 30,000 resellers, who in turn sell directly to end consumers. Essendant has a market cap of $1.2-billion (U.S.). It and also has operations in Dubai, United Arab Emirates.
The company trades for just 13.6 times trailing 12-month EPS and has a dirt-cheap 0.22 price/sales ratio.
It has a 14.9-per-cent return on equity over the past ten years, which the Warren Buffett model likes.
Essendant has more net current assets ($947-million) than long term debt ($661-million), part of why it gets strong interest from the Benjamin Graham-based model. It has a 2.4 current ratio, which the Graham model also likes. And it trades for 1.4x book value, which the Graham model also likes.
The company has a 1.8% dividend.
John Reese is long ESND.
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