ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
26.39 USD
-1.24 (-4.49%)
26.39 USD
0 (0%)
Taking everything into account, ESI scores 6 out of 10 in our fundamental rating. ESI was compared to 82 industry peers in the Chemicals industry. While ESI has a great profitability rating, 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.
In the past year ESI had a positive cash flow from operations.
In the past 5 years ESI has always been profitable.
ESI had a positive operating cash flow in each of the past 5 years.
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.
ESI's Return On Equity of 9.02% is fine compared to the rest of the industry. ESI outperforms 76.83% of its industry peers.
ESI's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. ESI outperforms 70.73% of its industry peers.
ESI had an Average Return On Invested Capital over the past 3 years of 5.90%. This is in line with the industry average of 6.05%.
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 86.59% of its industry peers.
In the last couple of years the Profit Margin of ESI has grown nicely.
With a decent Operating Margin value of 13.90%, ESI is doing good in the industry, outperforming 73.17% of the companies in the same industry.
ESI's Operating Margin has been stable in the last couple of years.
The Gross Margin of ESI (42.01%) is better than 86.59% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESI is destroying value.
ESI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ESI has less shares outstanding
ESI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.43, ESI is doing good in the industry, outperforming 73.17% of the companies in the same industry.
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.
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 | 2.43 |
ROIC/WACC0.78
WACC8.34%
2.3 Liquidity
A Current Ratio of 4.05 indicates that ESI has no problem at all paying 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.
ESI has a Quick ratio of 3.28. This is amongst the best in the industry. ESI outperforms 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.26% over the past year.
ESI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.10% yearly.
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
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.
Based on estimates for the next years, ESI will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
EPS Next Y3.98%
EPS Next 2Y9.11%
EPS Next 3Y9.62%
EPS Next 5Y9.64%
Revenue Next Year3.01%
Revenue Next 2Y6.72%
Revenue Next 3Y6.31%
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
A Price/Earnings ratio of 17.95 indicates a rather expensive valuation of ESI.
ESI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.54, ESI is valued a bit cheaper.
ESI is valuated correctly with a Price/Forward Earnings ratio of 15.39.
The rest of the industry has a similar Price/Forward Earnings ratio as ESI.
When comparing the Price/Forward Earnings ratio of ESI to the average of the S&P500 Index (23.78), we can say ESI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
ESI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ESI is more expensive than 62.20% of the companies in the same industry.
65.85% 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 | 15.46 |
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)4.51
PEG (5Y)1.78
EPS Next 2Y9.11%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, ESI has a reasonable but not impressive dividend return.
ESI's Dividend Yield is comparable with the industry average which is at 3.98.
With a Dividend Yield of 1.16, ESI pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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 2Y9.11%
EPS Next 3Y9.62%
26.39
-1.24 (-4.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.22%
Inst Owner Change1.13%
Ins Owners7.39%
Ins Owner Change1.97%
Market Cap6.39B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.16 (21.86%)
Short Float %5.16%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)5.29%
PT rev (3m)9.88%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.39 | ||
| P/S | 2.56 | ||
| P/FCF | 23.66 | ||
| P/OCF | 18.93 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.46 |
EPS(TTM)1.47
EY5.57%
EPS(NY)1.71
Fwd EY6.5%
FCF(TTM)1.12
FCFY4.23%
OCF(TTM)1.39
OCFY5.28%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.51
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 | 2.43 |
F-Score7
WACC8.34%
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 Y3.98%
EPS Next 2Y9.11%
EPS Next 3Y9.62%
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 2Y6.72%
Revenue Next 3Y6.31%
Revenue Next 5Y6.57%
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year14.34%
EBIT Next 3Y11.74%
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 3.98% in the next year.