ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ESI • US28618M1062
29.9 USD
+0.97 (+3.35%)
At close: Feb 4, 2026
29.9 USD
0 (0%)
After Hours: 2/4/2026, 4:20:03 PM
We assign a fundamental rating of 6 out of 10 to ESI. ESI was compared to 83 industry peers in the Chemicals industry. ESI scores excellent on profitability, but 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
- In the past year ESI was profitable.
- In the past year ESI had a positive cash flow from operations.
- In the past 5 years ESI has always been profitable.
- In the past 5 years ESI always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.75%, ESI is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
- The Return On Equity of ESI (9.02%) is better than 77.11% of its industry peers.
- With a decent Return On Invested Capital value of 6.49%, ESI is doing good in the industry, outperforming 71.08% of the companies in the same industry.
- 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 6.09%.
- 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
- ESI has a Profit Margin of 9.58%. This is amongst the best in the industry. ESI outperforms 85.54% of its industry peers.
- In the last couple of years the Profit Margin of ESI has grown nicely.
- ESI's Operating Margin of 13.90% is fine compared to the rest of the industry. ESI outperforms 72.29% of its industry peers.
- In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
- The Gross Margin of ESI (42.01%) is better than 86.75% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESI is destroying value.
- Compared to 1 year ago, ESI has more shares outstanding
- ESI has less shares outstanding than it did 5 years ago.
- ESI has a better debt/assets ratio than last year.
2.2 Solvency
- ESI has an Altman-Z score of 2.51. 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.
- With a decent Altman-Z score value of 2.51, 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.
- Looking at the Debt to FCF ratio, with a value of 6.02, ESI is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
- 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.49
WACC13.23%
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 90.36% 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 91.57% 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.
- 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
- 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 Y3.96%
EPS Next 2Y9.34%
EPS Next 3Y10.51%
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.
- 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
- With a Price/Earnings ratio of 20.34, ESI is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of ESI is on the same level as its industry peers.
- ESI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 17.37, the valuation of ESI can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESI indicates a somewhat cheap valuation: ESI is cheaper than 61.45% of the companies listed in the same industry.
- ESI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
- 63.86% of the companies in the same industry are cheaper than ESI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than the industry average as 61.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.81 | ||
| EV/EBITDA | 16.09 |
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)2.01
EPS Next 2Y9.34%
EPS Next 3Y10.51%
5. Dividend
5.1 Amount
- ESI has a Yearly Dividend Yield of 1.07%.
- Compared to an average industry Dividend Yield of 2.27, ESI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, ESI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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 2Y9.34%
EPS Next 3Y10.51%
29.9
+0.97 (+3.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners101.19%
Inst Owner Change-0.06%
Ins Owners7.63%
Ins Owner Change14.51%
Market Cap7.24B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.37 (8.26%)
Short Float %5.3%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)0.39%
PT rev (3m)5.97%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 17.37 | ||
| P/S | 2.9 | ||
| P/FCF | 26.81 | ||
| P/OCF | 21.45 | ||
| P/B | 2.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.09 |
EPS(TTM)1.47
EY4.92%
EPS(NY)1.72
Fwd EY5.76%
FCF(TTM)1.12
FCFY3.73%
OCF(TTM)1.39
OCFY4.66%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)5.13
PEG (5Y)2.01
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 | 2.51 |
F-Score7
WACC13.23%
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 Y3.96%
EPS Next 2Y9.34%
EPS Next 3Y10.51%
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 Year16.31%
EBIT Next 3Y13.74%
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 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 3.96% in the next year.