ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
NYSE:ESI • US28618M1062
35.495 USD
-1.22 (-3.31%)
Last: Feb 25, 2026, 10:56 AM
ESI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ESI was profitable.
- ESI had a positive operating cash flow in the past year.
- 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 3.74% is fine compared to the rest of the industry. ESI outperforms 73.49% of its industry peers.
- The Return On Equity of ESI (7.13%) is better than 71.08% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.73%, ESI is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
- ESI had an Average Return On Invested Capital over the past 3 years of 5.34%. This is in line with the industry average of 6.17%.
- 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 Rank | Sector 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%
1.3 Margins
- ESI's Profit Margin of 7.48% is fine compared to the rest of the industry. ESI outperforms 78.31% of its industry peers.
- ESI's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 13.41%, ESI is doing good in the industry, outperforming 69.88% of the companies in the same industry.
- ESI's Operating Margin has been stable in the last couple of years.
- ESI has a Gross Margin of 41.96%. This is amongst the best in the industry. ESI outperforms 87.95% 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 | 13.41% | ||
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESI is destroying value.
- The number of shares outstanding for ESI has been increased compared to 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
- ESI has an Altman-Z score of 2.94. 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.
- ESI's Altman-Z score of 2.94 is fine compared to the rest of the industry. ESI outperforms 79.52% of its industry peers.
- The Debt to FCF ratio of ESI is 7.14, which is on the high side as it means it would take ESI, 7.14 years of fcf income to pay off all of its debts.
- ESI has a Debt to FCF ratio of 7.14. This is in the better half 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.
- 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 | 7.14 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.42
WACC13.59%
2.3 Liquidity
- A Current Ratio of 3.68 indicates that ESI has no problem at all paying its short term obligations.
- ESI has a Current ratio of 3.68. This is amongst the best in the industry. ESI outperforms 89.16% of its industry peers.
- 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.
- With an excellent Quick ratio value of 3.00, ESI belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 3 |
3. Growth
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.
- ESI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.84%.
- 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
- The Earnings Per Share is expected to grow by 11.77% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y15.96%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue Next Year12.1%
Revenue Next 2Y9.2%
Revenue Next 3Y7.79%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 23.82, the valuation of ESI can be described as rather expensive.
- ESI's Price/Earnings ratio is in line with the industry average.
- ESI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.98.
- Based on the Price/Forward Earnings ratio of 20.54, the valuation of ESI can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESI is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 28.01. ESI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 20.54 |
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 73.49% of the companies listed 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 | 37.74 | ||
| EV/EBITDA | 20.03 |
4.3 Compensation for Growth
- ESI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ESI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)2.59
EPS Next 2Y14.44%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.88%, ESI is not a good candidate for dividend investing.
- ESI's Dividend Yield is slightly below the industry average, which is at 2.20.
- Compared to an average S&P500 Dividend Yield of 1.81, ESI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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
5.3 Sustainability
- ESI pays out 40.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
- ESI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.78%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
NYSE:ESI (2/25/2026, 10:56:56 AM)
35.495
-1.22 (-3.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-17 2026-02-17/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners101.19%
Inst Owner Change-2.1%
Ins Owners7.63%
Ins Owner Change18.57%
Market Cap8.59B
Revenue(TTM)2.55B
Net Income(TTM)190.80M
Analysts81.25
Price Target38.32 (7.96%)
Short Float %5.33%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.32
Dividend Growth(5Y)45.1%
DP40.78%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-02 2026-03-02 (0.08)
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)2.63%
PT rev (3m)2.75%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 20.54 | ||
| P/S | 3.37 | ||
| P/FCF | 37.74 | ||
| P/OCF | 29.64 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.03 |
EPS(TTM)1.49
EY4.2%
EPS(NY)1.73
Fwd EY4.87%
FCF(TTM)0.94
FCFY2.65%
OCF(TTM)1.2
OCFY3.37%
SpS10.54
BVpS11.05
TBVpS-0.93
PEG (NY)1.49
PEG (5Y)2.59
Graham Number19.25
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.94 |
F-Score6
WACC13.59%
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 Y15.96%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y0.02%
Revenue growth 5Y6.6%
Sales Q2Q%8.33%
Revenue Next Year12.1%
Revenue Next 2Y9.2%
Revenue Next 3Y7.79%
Revenue Next 5YN/A
EBIT growth 1Y-0.49%
EBIT growth 3Y1.7%
EBIT growth 5Y8.02%
EBIT Next Year44.53%
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 FAQ
Can you provide the ChartMill fundamental rating for ELEMENT SOLUTIONS INC?
ChartMill assigns a fundamental rating of 5 / 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 15.96% in the next year.