ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
26.39 USD
+0.12 (+0.46%)
26.39 USD
0 (0%)
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. ESI scores excellent on profitability, but there are some minor concerns on its financial health. ESI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ESI had positive earnings in the past year.
ESI had a positive operating cash flow in the past year.
In the past 5 years ESI has always been profitable.
In the past 5 years ESI always reported a positive cash flow from operatings.
1.2 Ratios
ESI has a Return On Assets of 4.75%. This is in the better half of the industry: ESI outperforms 79.01% of its industry peers.
With a decent Return On Equity value of 9.02%, ESI is doing good in the industry, outperforming 76.54% of the companies in the same industry.
ESI has a Return On Invested Capital of 6.49%. This is in the better half of the industry: ESI outperforms 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESI is in line with the industry average of 6.15%.
The 3 year average ROIC (5.90%) for ESI is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 9.02% | ||
| ROIC | 6.49% |
ROA(3y)3.73%
ROA(5y)3.37%
ROE(3y)7.78%
ROE(5y)6.96%
ROIC(3y)5.9%
ROIC(5y)5.62%
1.3 Margins
The Profit Margin of ESI (9.58%) is better than 85.19% of its industry peers.
In the last couple of years the Profit Margin of ESI has grown nicely.
ESI has a better Operating Margin (13.90%) than 72.84% of its industry peers.
In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 42.01%, ESI belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
ESI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.9% | ||
| PM (TTM) | 9.58% | ||
| GM | 42.01% |
OM growth 3Y3.85%
OM growth 5Y0.62%
PM growth 3Y5.47%
PM growth 5Y14.63%
GM growth 3Y1.73%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESI is destroying value.
The number of shares outstanding for ESI has been increased compared to 1 year ago.
The number of shares outstanding for ESI has been reduced compared to 5 years ago.
Compared to 1 year ago, ESI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
ESI has a better Altman-Z score (2.34) than 70.37% of its industry peers.
ESI has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as ESI would need 6.02 years to pay back of all of its debts.
The Debt to FCF ratio of ESI (6.02) is better than 76.54% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that ESI is somewhat dependend on debt financing.
ESI has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.78
WACC8.33%
2.3 Liquidity
ESI has a Current Ratio of 4.05. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
ESI has a better Current ratio (4.05) than 91.36% of its industry peers.
ESI has a Quick Ratio of 3.28. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
ESI has a better Quick ratio (3.28) than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
ESI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.26%.
ESI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.10% yearly.
ESI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.87%.
ESI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.00% yearly.
EPS 1Y (TTM)4.26%
EPS 3Y1.43%
EPS 5Y10.1%
EPS Q2Q%5.13%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%1.72%
3.2 Future
ESI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.64% yearly.
ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y4%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
EPS Next 5Y9.64%
Revenue Next Year2.81%
Revenue Next 2Y5.39%
Revenue Next 3Y5.2%
Revenue Next 5Y6.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ESI is valuated rather expensively with a Price/Earnings ratio of 17.95.
ESI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ESI to the average of the S&P500 Index (26.46), we can say ESI is valued slightly cheaper.
ESI is valuated correctly with a Price/Forward Earnings ratio of 15.53.
ESI's Price/Forward Earnings ratio is in line with the industry average.
ESI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than the industry average as 60.49% of the companies are valued more cheaply.
65.43% of the companies in the same industry are more expensive than ESI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 14.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ESI may justify a higher PE ratio.
PEG (NY)4.49
PEG (5Y)1.78
EPS Next 2Y8.64%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.24%.
Compared to an average industry Dividend Yield of 3.88, ESI has a dividend in line with its industry peers.
With a Dividend Yield of 1.24, ESI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
ESI has been paying a dividend for over 5 years, so it has already some track record.
ESI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
32.50% of the earnings are spent on dividend by ESI. This is a low number and sustainable payout ratio.
DP32.5%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
26.39
+0.12 (+0.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change1.13%
Ins Owners7.37%
Ins Owner Change2.75%
Market Cap6.39B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.33 (22.51%)
Short Float %5.16%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP32.5%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.73%
Min EPS beat(2)2.53%
Max EPS beat(2)2.93%
EPS beat(4)3
Avg EPS beat(4)2.14%
Min EPS beat(4)-0.19%
Max EPS beat(4)3.29%
EPS beat(8)6
Avg EPS beat(8)1.89%
EPS beat(12)9
Avg EPS beat(12)2.04%
EPS beat(16)12
Avg EPS beat(16)2.41%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)0.43%
Max Revenue beat(2)3.36%
Revenue beat(4)4
Avg Revenue beat(4)2.37%
Min Revenue beat(4)0.43%
Max Revenue beat(4)3.73%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)5
Avg Revenue beat(12)-0.89%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)5.84%
PT rev (3m)10.46%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.53 | ||
| P/S | 2.56 | ||
| P/FCF | 23.66 | ||
| P/OCF | 18.93 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.8 |
EPS(TTM)1.47
EY5.57%
EPS(NY)1.7
Fwd EY6.44%
FCF(TTM)1.12
FCFY4.23%
OCF(TTM)1.39
OCFY5.28%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.49
PEG (5Y)1.78
Graham Number19.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 9.02% | ||
| ROCE | 7.44% | ||
| ROIC | 6.49% | ||
| ROICexc | 7.43% | ||
| ROICexgc | 26.01% | ||
| OM | 13.9% | ||
| PM (TTM) | 9.58% | ||
| GM | 42.01% | ||
| FCFM | 10.8% |
ROA(3y)3.73%
ROA(5y)3.37%
ROE(3y)7.78%
ROE(5y)6.96%
ROIC(3y)5.9%
ROIC(5y)5.62%
ROICexc(3y)6.33%
ROICexc(5y)6.03%
ROICexgc(3y)23.36%
ROICexgc(5y)25.05%
ROCE(3y)6.76%
ROCE(5y)6.44%
ROICexgc growth 3Y-6.36%
ROICexgc growth 5Y-4.9%
ROICexc growth 3Y6.8%
ROICexc growth 5Y5.1%
OM growth 3Y3.85%
OM growth 5Y0.62%
PM growth 3Y5.47%
PM growth 5Y14.63%
GM growth 3Y1.73%
GM growth 5Y-0.37%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 44.47% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.59% | ||
| Profit Quality | 112.74% | ||
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.28 | ||
| Altman-Z | 2.34 |
F-Score7
WACC8.33%
ROIC/WACC0.78
Cap/Depr(3y)34.88%
Cap/Depr(5y)30.15%
Cap/Sales(3y)2.31%
Cap/Sales(5y)2.08%
Profit Quality(3y)164.7%
Profit Quality(5y)187.42%
High Growth Momentum
Growth
EPS 1Y (TTM)4.26%
EPS 3Y1.43%
EPS 5Y10.1%
EPS Q2Q%5.13%
EPS Next Y4%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
EPS Next 5Y9.64%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%1.72%
Revenue Next Year2.81%
Revenue Next 2Y5.39%
Revenue Next 3Y5.2%
Revenue Next 5Y6.57%
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year13.59%
EBIT Next 3Y9.79%
EBIT Next 5Y11.94%
FCF growth 1Y-1.46%
FCF growth 3Y2.24%
FCF growth 5YN/A
OCF growth 1Y3.75%
OCF growth 3Y4.08%
OCF growth 5Y108.63%
ELEMENT SOLUTIONS INC / ESI FAQ
Can you provide the ChartMill fundamental rating for ELEMENT SOLUTIONS INC?
ChartMill assigns a fundamental rating of 6 / 10 to ESI.
What is the valuation status of ELEMENT SOLUTIONS INC (ESI) stock?
ChartMill assigns a valuation rating of 4 / 10 to ELEMENT SOLUTIONS INC (ESI). This can be considered as Fairly Valued.
Can you provide the profitability details for ELEMENT SOLUTIONS INC?
ELEMENT SOLUTIONS INC (ESI) has a profitability rating of 8 / 10.
What is the valuation of ELEMENT SOLUTIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ELEMENT SOLUTIONS INC (ESI) is 17.95 and the Price/Book (PB) ratio is 2.41.
Can you provide the expected EPS growth for ESI stock?
The Earnings per Share (EPS) of ELEMENT SOLUTIONS INC (ESI) is expected to grow by 4% in the next year.