Home Sectors Basic Materials Latest Valuation: Neenah (NYSE: NP)

Latest Valuation: Neenah (NYSE: NP)

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Neenah is part of the forest products industry and trades as part of the basic materials sector. Neenah Inc, formerly Neenah Paper Inc, is a producer of filtration media and other durable, saturated, and coated substrates, and also premium, specialty and sustainable papers used for premium writing, text, cover, private watermarks.

Previous Intraday Trading Performance:

The NP stock showed a previous change of -0.98% with an open at 65.07 and a close of 64.37. It reached an intraday high of 65.25 and a low of 64.12.

SeekingAlpha:  Neenah Paper, Inc. (NP) CEO John O’Donnell on Q4 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $1.1b with 16.9m shares outstanding, of which the float is 16.6m shares. Trading volume reached 88,307 shares compared to its average volume of 115,233 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Neenah shares returned -5.20% and in the past 30 trading days it returned -6.28%. Over three months, it changed 2.10%. In one year it has changed -17.18% and within that year its 52-week high was 96.15 and its 52-week low was 56.80. NP stock is 13.33% above its 52 Week Low.

Our calculations show a 200 day moving average of 77.42 and a 50 day moving average of 66.16. Currently NP stock is trading -16.86% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Neenah Paper misses by $0.09, misses on revenue

Earnings:

The last annual fiscal EPS for the company was reported at 3.51 that ended on 31st of December 2018, which according to the previous close, that is a PE of 30.36. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.62. The TTM EPS is 3.51, which comes to a TTM PE of 18.34. Historically, the PE high was 30.40 and the PE low was 12.10. If the stock reached its PE low, that would represent a price of 42.47, which is a decrease of -34.02%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.53
09-30-2018:  0.76
06-30-2018:  1.18
03-31-2018:  1.04

The dividend per share is currently 1.80, which is a dividend yield of 2.80%. Also, the payout ratio is 51.28%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 32.53, which means it may be overvalued by -97.88%

Indicators to Watch:

Based on the latest filings, there is 1.80% of insider ownership and 160.30% of institutional ownership. Short-interest is 448,062, which is 2.66% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.79. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.20

PR Newswire:  Neenah Reports 2018 Fourth Quarter and Full Year Results

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 9.16%, return on assets is 4.10%, profit margin is 3.59%, price-to-sales is 1.08 and price-to-book is 2.93.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 1  :Past Performance Score
 4  :Financial Strength Score
 3  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.