ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
29.48 USD
+0.1 (+0.34%)
29.48 USD
0 (0%)
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. ESI has an excellent profitability rating, 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.
- Each year in the past 5 years ESI has been profitable.
- In the past 5 years ESI always reported a positive cash flow from operatings.
1.2 Ratios
- ESI's Return On Assets of 4.75% is fine compared to the rest of the industry. ESI outperforms 79.27% of its industry peers.
- With a decent Return On Equity value of 9.02%, ESI is doing good in the industry, outperforming 76.83% of the companies in the same industry.
- The Return On Invested Capital of ESI (6.49%) is better than 70.73% 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 6.11%.
- 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
- With an excellent Profit Margin value of 9.58%, ESI belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
- ESI's Profit Margin has improved in the last couple of years.
- The Operating Margin of ESI (13.90%) is better than 71.95% of its industry peers.
- ESI's Operating Margin has been stable in the last couple of years.
- ESI's Gross Margin of 42.01% is amongst the best of the industry. ESI outperforms 86.59% of its industry peers.
- In the last couple of years the Gross Margin of ESI has remained more or less at the same level.
| 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
- ESI has an Altman-Z score of 2.54. This is not the best score and indicates that ESI is in the grey zone with still only limited risk for bankruptcy at the moment.
- ESI's Altman-Z score of 2.54 is fine compared to the rest of the industry. ESI outperforms 73.17% 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.
- ESI has a better Debt to FCF ratio (6.02) than 75.61% of its industry peers.
- ESI has a Debt/Equity ratio of 0.61. This is a neutral value indicating ESI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.61, ESI perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.49
WACC13.17%
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 91.46% of its industry peers.
- A Quick Ratio of 3.28 indicates that ESI has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.28, ESI belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
| 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%.
- The Earnings Per Share has been growing by 10.10% on average over the past years. This is quite good.
- Looking at the last year, ESI shows a small growth in Revenue. The Revenue has grown by 3.87% in the last year.
- The Revenue has been growing slightly by 6.00% on average over the past years.
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
- The Earnings Per Share is expected to grow by 9.64% on average over the next years. This is quite good.
- The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y3.91%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
EPS Next 5Y9.64%
Revenue Next Year3.01%
Revenue Next 2Y7.27%
Revenue Next 3Y6.91%
Revenue Next 5Y6.57%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ESI is valuated rather expensively with a Price/Earnings ratio of 20.05.
- ESI's Price/Earnings is on the same level as the industry average.
- ESI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 17.17, which indicates a rather expensive current valuation of ESI.
- ESI's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, ESI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.05 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESI indicates a slightly more expensive valuation: ESI is more expensive than 65.85% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESI indicates a somewhat cheap valuation: ESI is cheaper than 63.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.43 | ||
| EV/EBITDA | 16.36 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of ESI may justify a higher PE ratio.
PEG (NY)5.13
PEG (5Y)1.99
EPS Next 2Y9.2%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
- ESI has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
- ESI's Dividend Yield is comparable with the industry average which is at 2.28.
- With a Dividend Yield of 1.09, ESI pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
- ESI pays out 32.50% of its income as dividend. This is a sustainable payout ratio.
DP32.5%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
29.48
+0.1 (+0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners101.19%
Inst Owner Change0.01%
Ins Owners7.63%
Ins Owner Change14.51%
Market Cap7.13B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.37 (9.8%)
Short Float %5.61%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP32.5%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)0.65%
PT rev (3m)10.18%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.05 | ||
| Fwd PE | 17.17 | ||
| P/S | 2.85 | ||
| P/FCF | 26.43 | ||
| P/OCF | 21.14 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.36 |
EPS(TTM)1.47
EY4.99%
EPS(NY)1.72
Fwd EY5.82%
FCF(TTM)1.12
FCFY3.78%
OCF(TTM)1.39
OCFY4.73%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)5.13
PEG (5Y)1.99
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 | 2.54 |
F-Score7
WACC13.17%
ROIC/WACC0.49
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 Y3.91%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
EPS Next 5Y9.64%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%1.72%
Revenue Next Year3.01%
Revenue Next 2Y7.27%
Revenue Next 3Y6.91%
Revenue Next 5Y6.57%
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year14.34%
EBIT Next 3Y12.07%
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 for 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.
Can you provide the financial health for ESI stock?
The financial health rating of ELEMENT SOLUTIONS INC (ESI) is 6 / 10.
What is the earnings growth outlook for ELEMENT SOLUTIONS INC?
The Earnings per Share (EPS) of ELEMENT SOLUTIONS INC (ESI) is expected to grow by 3.91% in the next year.