ELEMENT SOLUTIONS INC (ESI) Fundamental Analysis & Valuation

NYSE:ESI • US28618M1062

Current stock price

32.36 USD
-1 (-3%)
At close:
32.82 USD
+0.46 (+1.42%)
After Hours:

This ESI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ESI Profitability Analysis

1.1 Basic Checks

  • ESI had positive earnings in the past year.
  • In the past year ESI had a positive cash flow from operations.
  • ESI had positive earnings in each of the past 5 years.
  • In the past 5 years ESI always reported a positive cash flow from operatings.
ESI Yearly Net Income VS EBIT VS OCF VS FCFESI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M

1.2 Ratios

  • ESI has a better Return On Assets (3.74%) than 74.70% of its industry peers.
  • With a decent Return On Equity value of 7.13%, ESI is doing good in the industry, outperforming 72.29% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 5.73%, ESI is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ESI is in line with the industry average of 6.58%.
  • The last Return On Invested Capital (5.73%) for ESI is above the 3 year average (5.34%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.74%
ROE 7.13%
ROIC 5.73%
ROA(3y)3.71%
ROA(5y)3.78%
ROE(3y)7.48%
ROE(5y)7.73%
ROIC(3y)5.34%
ROIC(5y)5.31%
ESI Yearly ROA, ROE, ROICESI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 -10 -15

1.3 Margins

  • The Profit Margin of ESI (7.48%) is better than 79.52% of its industry peers.
  • ESI's Profit Margin has improved in the last couple of years.
  • ESI's Operating Margin of 13.41% is fine compared to the rest of the industry. ESI outperforms 71.08% of its industry peers.
  • In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
  • ESI has a better Gross Margin (41.96%) than 87.95% of its industry peers.
  • ESI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.41%
PM (TTM) 7.48%
GM 41.96%
OM growth 3Y1.68%
OM growth 5Y1.33%
PM growth 3Y0.61%
PM growth 5Y12.86%
GM growth 3Y3.94%
GM growth 5Y-0.21%
ESI Yearly Profit, Operating, Gross MarginsESI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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6

2. ESI Health Analysis

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.
  • The number of shares outstanding for ESI has been reduced compared to 5 years ago.
  • The debt/assets ratio for ESI has been reduced compared to a year ago.
ESI Yearly Shares OutstandingESI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
ESI Yearly Total Debt VS Total AssetsESI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 2.75 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 2.75, ESI is doing good in the industry, outperforming 73.49% of the companies in the same industry.
  • ESI has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as ESI would need 7.14 years to pay back of all of its debts.
  • ESI's Debt to FCF ratio of 7.14 is fine compared to the rest of the industry. ESI outperforms 69.88% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.61, ESI is in line with its industry, outperforming 57.83% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 7.14
Altman-Z 2.75
ROIC/WACC0.42
WACC13.72%
ESI Yearly LT Debt VS Equity VS FCFESI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 3.68 indicates that ESI has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 3.68, ESI belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
  • ESI has a Quick Ratio of 3.00. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
  • ESI's Quick ratio of 3.00 is amongst the best of the industry. ESI outperforms 91.57% of its industry peers.
Industry RankSector Rank
Current Ratio 3.68
Quick Ratio 3
ESI Yearly Current Assets VS Current LiabilitesESI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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6

3. ESI Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.47% over the past year.
  • Measured over the past years, ESI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
  • The Revenue has been growing slightly by 3.84% in the past year.
  • ESI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.60% yearly.
EPS 1Y (TTM)3.47%
EPS 3Y1.86%
EPS 5Y9.19%
EPS Q2Q%5.71%
Revenue 1Y (TTM)3.84%
Revenue growth 3Y0.02%
Revenue growth 5Y6.6%
Sales Q2Q%8.33%

3.2 Future

  • Based on estimates for the next years, ESI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.05% on average per year.
  • ESI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.71% yearly.
EPS Next Y18.56%
EPS Next 2Y16.47%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue Next Year22.7%
Revenue Next 2Y14.8%
Revenue Next 3Y10.71%
Revenue Next 5YN/A

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 accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ESI Yearly Revenue VS EstimatesESI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
ESI Yearly EPS VS EstimatesESI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

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3

4. ESI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.72, which indicates a rather expensive current valuation of ESI.
  • Compared to the rest of the industry, the Price/Earnings ratio of ESI is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 24.75. ESI is around the same levels.
  • ESI is valuated rather expensively with a Price/Forward Earnings ratio of 18.32.
  • ESI's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.10. ESI is around the same levels.
Industry RankSector Rank
PE 21.72
Fwd PE 18.32
ESI Price Earnings VS Forward Price EarningsESI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than the industry average as 66.27% of the companies are valued more cheaply.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ESI.
Industry RankSector Rank
P/FCF 34.63
EV/EBITDA 18.49
ESI Per share dataESI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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.
  • A more expensive valuation may be justified as ESI's earnings are expected to grow with 15.05% in the coming years.
PEG (NY)1.17
PEG (5Y)2.36
EPS Next 2Y16.47%
EPS Next 3Y15.05%

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3

5. ESI Dividend Analysis

5.1 Amount

  • ESI has a yearly dividend return of 0.94%, which is pretty low.
  • Compared to an average industry Dividend Yield of 2.04, ESI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ESI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.94%

5.2 History

  • On average, the dividend of ESI grows each year by 45.10%, which is quite nice.
  • 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)45.1%
Div Incr Years0
Div Non Decr Years4
ESI Yearly Dividends per shareESI Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3

5.3 Sustainability

  • 40.78% of the earnings are spent on dividend by ESI. This is a bit on the high side, but may be sustainable.
  • The dividend of ESI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.78%
EPS Next 2Y16.47%
EPS Next 3Y15.05%
ESI Yearly Income VS Free CF VS DividendESI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M
ESI Dividend Payout.ESI Dividend Payout, showing the Payout Ratio.ESI Dividend Payout.PayoutRetained Earnings

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ESI Fundamentals: All Metrics, Ratios and Statistics

ELEMENT SOLUTIONS INC

NYSE:ESI (3/30/2026, 6:30:00 PM)

After market: 32.82 +0.46 (+1.42%)

32.36

-1 (-3%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-17
Earnings (Next)04-21
Inst Owners102.17%
Inst Owner Change-2.07%
Ins Owners7.5%
Ins Owner Change8.89%
Market Cap7.88B
Revenue(TTM)2.55B
Net Income(TTM)190.80M
Analysts81.25
Price Target38.93 (20.3%)
Short Float %4.99%
Short Ratio4.01
Dividend
Industry RankSector Rank
Dividend Yield 0.94%
Yearly Dividend0.32
Dividend Growth(5Y)45.1%
DP40.78%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.08%
Min EPS beat(2)1.63%
Max EPS beat(2)2.53%
EPS beat(4)4
Avg EPS beat(4)2.6%
Min EPS beat(4)1.63%
Max EPS beat(4)3.29%
EPS beat(8)7
Avg EPS beat(8)2.46%
EPS beat(12)9
Avg EPS beat(12)2.06%
EPS beat(16)12
Avg EPS beat(16)2.32%
Revenue beat(2)2
Avg Revenue beat(2)3.18%
Min Revenue beat(2)0.43%
Max Revenue beat(2)5.94%
Revenue beat(4)4
Avg Revenue beat(4)2.92%
Min Revenue beat(4)0.43%
Max Revenue beat(4)5.94%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)1.61%
PT rev (3m)20.76%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)2.25%
EPS NY rev (3m)2.89%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)9.45%
Revenue NY rev (3m)10.15%
Valuation
Industry RankSector Rank
PE 21.72
Fwd PE 18.32
P/S 3.09
P/FCF 34.63
P/OCF 27.2
P/B 2.95
P/tB N/A
EV/EBITDA 18.49
EPS(TTM)1.49
EY4.6%
EPS(NY)1.77
Fwd EY5.46%
FCF(TTM)0.93
FCFY2.89%
OCF(TTM)1.19
OCFY3.68%
SpS10.47
BVpS10.98
TBVpS-0.92
PEG (NY)1.17
PEG (5Y)2.36
Graham Number19.19
Profitability
Industry RankSector Rank
ROA 3.74%
ROE 7.13%
ROCE 7.33%
ROIC 5.73%
ROICexc 6.61%
ROICexgc 23.34%
OM 13.41%
PM (TTM) 7.48%
GM 41.96%
FCFM 8.92%
ROA(3y)3.71%
ROA(5y)3.78%
ROE(3y)7.48%
ROE(5y)7.73%
ROIC(3y)5.34%
ROIC(5y)5.31%
ROICexc(3y)5.9%
ROICexc(5y)5.79%
ROICexgc(3y)20.84%
ROICexgc(5y)22.39%
ROCE(3y)6.83%
ROCE(5y)6.79%
ROICexgc growth 3Y-0.44%
ROICexgc growth 5Y-0.29%
ROICexc growth 3Y3.75%
ROICexc growth 5Y7.11%
OM growth 3Y1.68%
OM growth 5Y1.33%
PM growth 3Y0.61%
PM growth 5Y12.86%
GM growth 3Y3.94%
GM growth 5Y-0.21%
F-Score6
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 7.14
Debt/EBITDA 3.3
Cap/Depr 41.14%
Cap/Sales 2.44%
Interest Coverage 4.99
Cash Conversion 58.74%
Profit Quality 119.29%
Current Ratio 3.68
Quick Ratio 3
Altman-Z 2.75
F-Score6
WACC13.72%
ROIC/WACC0.42
Cap/Depr(3y)38.72%
Cap/Depr(5y)34.81%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.26%
Profit Quality(3y)159.96%
Profit Quality(5y)149.85%
High Growth Momentum
Growth
EPS 1Y (TTM)3.47%
EPS 3Y1.86%
EPS 5Y9.19%
EPS Q2Q%5.71%
EPS Next Y18.56%
EPS Next 2Y16.47%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y0.02%
Revenue growth 5Y6.6%
Sales Q2Q%8.33%
Revenue Next Year22.7%
Revenue Next 2Y14.8%
Revenue Next 3Y10.71%
Revenue Next 5YN/A
EBIT growth 1Y-0.49%
EBIT growth 3Y1.7%
EBIT growth 5Y8.02%
EBIT Next Year43.36%
EBIT Next 3Y20.25%
EBIT Next 5YN/A
FCF growth 1Y-22.9%
FCF growth 3Y-3.07%
FCF growth 5Y-0.43%
OCF growth 1Y-20.3%
OCF growth 3Y-0.89%
OCF growth 5Y2.09%

ELEMENT SOLUTIONS INC / ESI Fundamental Analysis 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 3 / 10 to ELEMENT SOLUTIONS INC (ESI). This can be considered as Overvalued.


Can you provide the profitability details for ELEMENT SOLUTIONS INC?

ELEMENT SOLUTIONS INC (ESI) has a profitability rating of 7 / 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 18.56% in the next year.