ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
28.05 USD
+0.49 (+1.78%)
28.05 USD
0 (0%)
Overall ESI gets a fundamental rating of 6 out of 10. We evaluated ESI against 83 industry peers in the Chemicals industry. While ESI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ESI has a decent growth rate and is not valued too expensively.
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 79.52% of its industry peers.
ESI's Return On Equity of 9.02% is fine compared to the rest of the industry. ESI outperforms 77.11% of its industry peers.
ESI's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. ESI outperforms 71.08% 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 6.10%.
The last Return On Invested Capital (6.49%) for ESI is above the 3 year average (5.90%), which is a sign of increasing profitability.
| 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 85.54% of the companies in the same industry.
ESI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.90%, ESI is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
ESI has a Gross Margin of 42.01%. This is amongst the best in the industry. ESI outperforms 86.75% 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
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
Compared to 1 year ago, ESI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.45 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 2.45, ESI is doing good in the industry, outperforming 68.67% of the companies in the same industry.
The Debt to FCF ratio of ESI is 6.02, which is on the high side as it means it would take ESI, 6.02 years of fcf income to pay off all of its debts.
ESI's Debt to FCF ratio of 6.02 is fine compared to the rest of the industry. ESI outperforms 75.90% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that ESI is somewhat dependend on debt financing.
ESI's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. ESI outperforms 56.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.5
WACC13.01%
2.3 Liquidity
A Current Ratio of 4.05 indicates that ESI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.05, ESI belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
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 92.77% of the companies in the same industry.
| 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.
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.
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
The Earnings Per Share is expected to grow by 9.64% on average over the next years. This is quite good.
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 Y3.91%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
EPS Next 5Y9.64%
Revenue Next Year3.01%
Revenue Next 2Y7.12%
Revenue Next 3Y6.74%
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.
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 19.08 indicates a rather expensive valuation of ESI.
The rest of the industry has a similar Price/Earnings ratio as ESI.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ESI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.34, ESI is valued correctly.
ESI's Price/Forward Earnings ratio is in line with the industry average.
ESI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 16.34 |
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 63.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than the industry average as 66.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 15.66 |
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.
ESI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.88
PEG (5Y)1.89
EPS Next 2Y9.2%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
ESI's Dividend Yield is comparable with the industry average which is at 2.36.
ESI's Dividend Yield is slightly below the S&P500 average, which is at 1.90.
| 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 2Y9.2%
EPS Next 3Y9.81%
28.05
+0.49 (+1.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.19%
Inst Owner Change0%
Ins Owners7.63%
Ins Owner Change14.51%
Market Cap6.79B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.24 (14.94%)
Short Float %5.61%
Short Ratio5.06
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-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)0.26%
PT rev (3m)9.76%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 16.34 | ||
| P/S | 2.72 | ||
| P/FCF | 25.15 | ||
| P/OCF | 20.12 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.66 |
EPS(TTM)1.47
EY5.24%
EPS(NY)1.72
Fwd EY6.12%
FCF(TTM)1.12
FCFY3.98%
OCF(TTM)1.39
OCFY4.97%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.88
PEG (5Y)1.89
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 | 2.45 |
F-Score7
WACC13.01%
ROIC/WACC0.5
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 2Y7.12%
Revenue Next 3Y6.74%
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.