ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
NYSE:ESI - New York Stock Exchange, Inc. - US28618M1062 - Common Stock - Currency: USD
Overall ESI gets a fundamental rating of 6 out of 10. We evaluated ESI against 85 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making ESI a very profitable company, without any liquidiy or solvency issues. 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.
ESI had a positive operating cash flow in the past year.
Each year in the past 5 years ESI has been profitable.
ESI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ESI (5.97%) is better than 82.35% of its industry peers.
Looking at the Return On Equity, with a value of 11.36%, ESI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Return On Invested Capital of ESI (6.73%) is better than 65.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESI is in line with the industry average of 6.84%.
The 3 year average ROIC (5.90%) for ESI is below the current ROIC(6.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 11.36% | ||
| ROIC | 6.73% |
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's Profit Margin of 11.56% is amongst the best of the industry. ESI outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of ESI has grown nicely.
Looking at the Operating Margin, with a value of 13.88%, ESI is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
ESI's Operating Margin has been stable in the last couple of years.
ESI's Gross Margin of 42.06% is amongst the best of the industry. ESI outperforms 87.06% of its industry peers.
ESI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.88% | ||
| PM (TTM) | 11.56% | ||
| GM | 42.06% |
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 2.31. 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 has a Altman-Z score of 2.31. This is in the better half of the industry: ESI outperforms 62.35% of its industry peers.
ESI has a debt to FCF ratio of 5.99. This is a neutral value as ESI would need 5.99 years to pay back of all of its debts.
ESI's Debt to FCF ratio of 5.99 is fine compared to the rest of the industry. ESI outperforms 74.12% of its industry peers.
ESI has a Debt/Equity ratio of 0.64. This is a neutral value indicating ESI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, ESI perfoms like the industry average, outperforming 51.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.79
WACC8.49%
2.3 Liquidity
ESI has a Current Ratio of 3.95. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
ESI has a Current ratio of 3.95. This is amongst the best in the industry. ESI outperforms 87.06% of its industry peers.
A Quick Ratio of 3.16 indicates that ESI has no problem at all paying its short term obligations.
ESI's Quick ratio of 3.16 is amongst the best of the industry. ESI outperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.16 |
3. Growth
3.1 Past
ESI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.27%, which is quite good.
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.
ESI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.08%.
The Revenue has been growing slightly by 6.00% on average over the past years.
EPS 1Y (TTM)8.27%
EPS 3Y1.43%
EPS 5Y10.1%
EPS Q2Q%0%
Revenue 1Y (TTM)6.08%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%3.25%
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 8.51% yearly.
ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.18% yearly.
EPS Next Y-0.47%
EPS Next 2Y5.36%
EPS Next 3Y8.51%
EPS Next 5YN/A
Revenue Next Year0.16%
Revenue Next 2Y2.45%
Revenue Next 3Y3.18%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.93, which indicates a correct valuation of ESI.
64.71% of the companies in the same industry are more expensive than ESI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ESI is valued a bit cheaper.
ESI is valuated correctly with a Price/Forward Earnings ratio of 15.25.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESI is on the same level as its industry peers.
ESI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 15.25 |
4.2 Price Multiples
ESI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
ESI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.68
EPS Next 2Y5.36%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.27%.
Compared to an average industry Dividend Yield of 3.53, ESI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, ESI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
27.25% of the earnings are spent on dividend by ESI. This is a low number and sustainable payout ratio.
DP27.25%
EPS Next 2Y5.36%
EPS Next 3Y8.51%
NYSE:ESI (7/14/2025, 3:36:04 PM)
24.375
-0.3 (-1.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.71%
Inst Owner Change-0.01%
Ins Owners7.35%
Ins Owner Change2.86%
Market Cap5.91B
Analysts81.43
Price Target27.58 (13.15%)
Short Float %2.2%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP27.25%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.55%
Min EPS beat(2)-0.19%
Max EPS beat(2)3.29%
EPS beat(4)3
Avg EPS beat(4)1.63%
Min EPS beat(4)-0.19%
Max EPS beat(4)3.29%
EPS beat(8)5
Avg EPS beat(8)1.91%
EPS beat(12)8
Avg EPS beat(12)1.91%
EPS beat(16)12
Avg EPS beat(16)2.32%
Revenue beat(2)2
Avg Revenue beat(2)2.84%
Min Revenue beat(2)1.94%
Max Revenue beat(2)3.73%
Revenue beat(4)3
Avg Revenue beat(4)1.84%
Min Revenue beat(4)-0.27%
Max Revenue beat(4)3.73%
Revenue beat(8)3
Avg Revenue beat(8)-0.8%
Revenue beat(12)3
Avg Revenue beat(12)-1.83%
Revenue beat(16)7
Avg Revenue beat(16)0.08%
PT rev (1m)0.02%
PT rev (3m)-13.11%
EPS NQ rev (1m)3.81%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)1.06%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 15.25 | ||
| P/S | 2.39 | ||
| P/FCF | 21.81 | ||
| P/OCF | 17.84 | ||
| P/B | 2.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.28 |
EPS(TTM)1.44
EY5.91%
EPS(NY)1.6
Fwd EY6.56%
FCF(TTM)1.12
FCFY4.58%
OCF(TTM)1.37
OCFY5.61%
SpS10.21
BVpS10.39
TBVpS-1.47
PEG (NY)N/A
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 11.36% | ||
| ROCE | 7.72% | ||
| ROIC | 6.73% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 27.85% | ||
| OM | 13.88% | ||
| PM (TTM) | 11.56% | ||
| GM | 42.06% | ||
| FCFM | 10.95% |
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%
ROICexcg growth 3Y-6.36%
ROICexcg 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-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.99 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 39.09% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.55% | ||
| Profit Quality | 94.69% | ||
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.16 | ||
| Altman-Z | 2.31 |
F-Score8
WACC8.49%
ROIC/WACC0.79
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)8.27%
EPS 3Y1.43%
EPS 5Y10.1%
EPS Q2Q%0%
EPS Next Y-0.47%
EPS Next 2Y5.36%
EPS Next 3Y8.51%
EPS Next 5YN/A
Revenue 1Y (TTM)6.08%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%3.25%
Revenue Next Year0.16%
Revenue Next 2Y2.45%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
EBIT growth 1Y29.62%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year9.33%
EBIT Next 3Y8.84%
EBIT Next 5YN/A
FCF growth 1Y-12.41%
FCF growth 3Y2.24%
FCF growth 5YN/A
OCF growth 1Y-7.12%
OCF growth 3Y4.08%
OCF growth 5Y108.63%