ELEMENT SOLUTIONS INC (ESI)
US28618M1062 - Common Stock
ESI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ESI was profitable.
In the past year ESI had a positive cash flow from operations.
Each year in the past 5 years ESI has been profitable.
Each year in the past 5 years ESI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.23%, ESI is doing good in the industry, outperforming 77.65% of the companies in the same industry.
ESI's Return On Equity of 10.93% is fine compared to the rest of the industry. ESI outperforms 72.94% of its industry peers.
ESI has a Return On Invested Capital (5.45%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESI is in line with the industry average of 6.50%.
The last Return On Invested Capital (5.45%) for ESI is above the 3 year average (5.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.93% | ||
| ROIC | 5.45% |
ROA(3y)3.38%
ROA(5y)2.79%
ROE(3y)7.1%
ROE(5y)5.74%
ROIC(3y)5.01%
ROIC(5y)4.87%
1.3 Margins
ESI's Profit Margin of 11.08% is amongst the best of the industry. ESI outperforms 84.71% 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 13.49%, ESI is doing good in the industry, outperforming 77.65% of the companies in the same industry.
In the last couple of years the Operating Margin of ESI has declined.
Looking at the Gross Margin, with a value of 41.56%, ESI belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
In the last couple of years the Gross Margin of ESI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.49% | ||
| PM (TTM) | 11.08% | ||
| GM | 41.56% |
OM growth 3Y-4.69%
OM growth 5Y-3.02%
PM growth 3Y7.42%
PM growth 5YN/A
GM growth 3Y-2.45%
GM growth 5Y-1.62%
2. Health
2.1 Basic Checks
ESI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ESI has been increased compared to 1 year ago.
ESI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.18 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ESI (2.18) is comparable to the rest of the industry.
ESI has a debt to FCF ratio of 7.04. This is a slightly negative value and a sign of low solvency as ESI would need 7.04 years to pay back of all of its debts.
ESI's Debt to FCF ratio of 7.04 is fine compared to the rest of the industry. ESI outperforms 61.18% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that ESI is somewhat dependend on debt financing.
The Debt to Equity ratio of ESI (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 7.04 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.72
WACC7.59%
2.3 Liquidity
ESI has a Current Ratio of 3.52. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
ESI has a better Current ratio (3.52) than 87.06% of its industry peers.
A Quick Ratio of 2.77 indicates that ESI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.77, ESI belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.90% 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 19.47% yearly.
The Revenue has been growing slightly by 3.11% in the past year.
ESI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.54% yearly.
EPS 1Y (TTM)11.9%
EPS 3Y10.35%
EPS 5Y19.47%
EPS Q2Q%8.33%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y7.97%
Revenue growth 5Y3.54%
Sales Q2Q%7.63%
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 13.47% yearly.
Based on estimates for the next years, ESI will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
EPS Next Y12.51%
EPS Next 2Y12.49%
EPS Next 3Y13.47%
EPS Next 5YN/A
Revenue Next Year3.46%
Revenue Next 2Y4.36%
Revenue Next 3Y4.94%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.26, which indicates a rather expensive current valuation of ESI.
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 (28.96), we can say ESI is valued slightly cheaper.
ESI is valuated rather expensively with a Price/Forward Earnings ratio of 17.50.
ESI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, ESI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than 62.35% of the companies in the same industry.
ESI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.29 | ||
| EV/EBITDA | 17.41 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ESI may justify a higher PE ratio.
ESI's earnings are expected to grow with 13.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)1.04
EPS Next 2Y12.49%
EPS Next 3Y13.47%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
ESI's Dividend Yield is comparable with the industry average which is at 2.95.
With a Dividend Yield of 1.13, ESI pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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 Years3
5.3 Sustainability
ESI pays out 29.29% of its income as dividend. This is a sustainable payout ratio.
DP29.29%
EPS Next 2Y12.49%
EPS Next 3Y13.47%
ELEMENT SOLUTIONS INC
NYSE:ESI (11/21/2024, 8:25:09 PM)
After market: 28.56 0 (0%)28.56
+0.85 (+3.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.49% | ||
| PM (TTM) | 11.08% | ||
| GM | 41.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.9%
EPS 3Y10.35%
EPS 5Y
EPS Q2Q%
EPS Next Y12.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.11%
Revenue growth 3Y7.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y