ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
24.4 USD
+1.41 (+6.13%)
24.4 USD
0 (0%)
Taking everything into account, ESI scores 6 out of 10 in our fundamental rating. ESI was compared to 81 industry peers in the Chemicals industry. ESI scores excellent on profitability, but there are some minor concerns on its financial health. ESI is not valued too expensively and it also shows a decent growth rate.
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.
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 79.01% of the companies in the same industry.
ESI's Return On Equity of 9.02% is fine compared to the rest of the industry. ESI outperforms 76.54% of its industry peers.
ESI has a Return On Invested Capital of 6.49%. This is in the better half of the industry: ESI outperforms 70.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESI is in line with the industry average of 6.08%.
The 3 year average ROIC (5.90%) for ESI is below the current ROIC(6.49%), indicating increased profibility in the last year.
| 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 85.19% of the companies in the same industry.
In the last couple of years the Profit Margin of ESI has grown nicely.
With a decent Operating Margin value of 13.90%, ESI is doing good in the industry, outperforming 72.84% of the companies in the same industry.
ESI's Operating Margin has been stable in the last couple of years.
ESI has a better Gross Margin (42.01%) than 87.65% 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.
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.
ESI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.23 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ESI (2.23) is better than 66.67% of its industry peers.
ESI has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as ESI would need 6.02 years to pay back of 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 76.54% 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.
Looking at the Debt to Equity ratio, with a value of 0.61, ESI is in line with its industry, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.8
WACC8.1%
2.3 Liquidity
ESI has a Current Ratio of 4.05. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
ESI's Current ratio of 4.05 is amongst the best of the industry. ESI outperforms 91.36% 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 better Quick ratio (3.28) than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
ESI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.26%.
Measured over the past years, ESI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.10% on average per year.
The Revenue has been growing slightly by 3.87% in the past 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
The Earnings Per Share is expected to grow by 9.71% 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 5.20% on average per year.
EPS Next Y4%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue Next Year2.81%
Revenue Next 2Y5.39%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.60, ESI is valued correctly.
ESI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.47. ESI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.36, ESI is valued correctly.
ESI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ESI to the average of the S&P500 Index (34.42), we can say ESI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
ESI's Enterprise Value to EBITDA is on the same level as the industry average.
65.43% of the companies in the same industry are more expensive than ESI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 13.88 |
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)4.15
PEG (5Y)1.64
EPS Next 2Y8.64%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, ESI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.16, ESI has a dividend in line with its industry peers.
With a Dividend Yield of 1.39, ESI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 2Y8.64%
EPS Next 3Y9.71%
24.4
+1.41 (+6.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change1.13%
Ins Owners7.37%
Ins Owner Change2.75%
Market Cap5.90B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.33 (32.5%)
Short Float %4.57%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP32.5%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)10.05%
PT rev (3m)10.46%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 14.36 | ||
| P/S | 2.36 | ||
| P/FCF | 21.84 | ||
| P/OCF | 17.47 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.88 |
EPS(TTM)1.47
EY6.02%
EPS(NY)1.7
Fwd EY6.97%
FCF(TTM)1.12
FCFY4.58%
OCF(TTM)1.4
OCFY5.72%
SpS10.34
BVpS10.98
TBVpS-1.06
PEG (NY)4.15
PEG (5Y)1.64
Graham Number19.06
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 | 2.23 |
F-Score7
WACC8.1%
ROIC/WACC0.8
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 Y4%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue 1Y (TTM)3.87%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%1.72%
Revenue Next Year2.81%
Revenue Next 2Y5.39%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year13.59%
EBIT Next 3Y9.79%
EBIT Next 5YN/A
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 of ELEMENT SOLUTIONS INC (ESI) stock?
ChartMill assigns a valuation rating of 5 / 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.
What is the valuation of ELEMENT SOLUTIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ELEMENT SOLUTIONS INC (ESI) is 16.6 and the Price/Book (PB) ratio is 2.22.
Can you provide the expected EPS growth for ESI stock?
The Earnings per Share (EPS) of ELEMENT SOLUTIONS INC (ESI) is expected to grow by 4% in the next year.