ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
29.27 USD
+1.18 (+4.2%)
Overall ESI gets a fundamental rating of 6 out of 10. We evaluated ESI against 82 industry peers in the Chemicals industry. While ESI has a great profitability rating, 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
- 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.
- Each year in the past 5 years ESI had a positive operating cash flow.
1.2 Ratios
- ESI's Return On Assets of 4.75% is fine compared to the rest of the industry. ESI outperforms 79.27% of its industry peers.
- The Return On Equity of ESI (9.02%) is better than 76.83% 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 70.73% 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 6.10%.
- 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
- ESI has a Profit Margin of 9.58%. This is amongst the best in the industry. ESI outperforms 85.37% of its industry peers.
- In the last couple of years the Profit Margin of ESI has grown nicely.
- ESI has a better Operating Margin (13.90%) than 71.95% of its industry peers.
- In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 42.01%, ESI belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
- 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 | 13.9% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESI is destroying value.
- The number of shares outstanding for ESI has been increased compared to 1 year ago.
- The number of shares outstanding for ESI has been reduced compared to 5 years ago.
- ESI has a better debt/assets ratio than last year.
2.2 Solvency
- ESI has an Altman-Z score of 2.45. 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 2.45. This is in the better half of the industry: ESI outperforms 67.07% 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.
- ESI's Debt to FCF ratio of 6.02 is fine compared to the rest of the industry. ESI outperforms 75.61% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that ESI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.61, ESI perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.5
WACC13.01%
2.3 Liquidity
- A Current Ratio of 4.05 indicates that ESI has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.05, ESI belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
- A Quick Ratio of 3.28 indicates that ESI has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 3.28, ESI belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
| 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%.
- The Earnings Per Share has been growing by 10.10% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 3.87% in the past year.
- Measured over the past years, ESI shows a small growth in Revenue. The Revenue has been growing by 6.00% on average per year.
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 9.64% on average over the next years. This is quite good.
- The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y3.91%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
EPS Next 5Y9.64%
Revenue Next Year3.01%
Revenue Next 2Y7.12%
Revenue Next 3Y6.74%
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.
- 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
- The Price/Earnings ratio is 19.91, 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, ESI is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.05, which indicates a rather expensive current valuation of ESI.
- The rest of the industry has a similar Price/Forward Earnings ratio as ESI.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. ESI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 17.05 |
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 63.41% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.24 | ||
| EV/EBITDA | 15.68 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESI does not grow enough to justify the current Price/Earnings ratio.
- ESI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.09
PEG (5Y)1.97
EPS Next 2Y9.2%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
- ESI has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.34, ESI has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.91, ESI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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 2Y9.2%
EPS Next 3Y9.81%
NYSE:ESI (1/15/2026, 12:49:25 PM)
29.27
+1.18 (+4.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners101.19%
Inst Owner Change0.09%
Ins Owners7.63%
Ins Owner Change14.51%
Market Cap7.08B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.24 (10.15%)
Short Float %5.61%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)0.26%
PT rev (3m)9.76%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 17.05 | ||
| P/S | 2.83 | ||
| P/FCF | 26.24 | ||
| P/OCF | 20.99 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.68 |
EPS(TTM)1.47
EY5.02%
EPS(NY)1.72
Fwd EY5.87%
FCF(TTM)1.12
FCFY3.81%
OCF(TTM)1.39
OCFY4.76%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)5.09
PEG (5Y)1.97
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 | 2.45 |
F-Score7
WACC13.01%
ROIC/WACC0.5
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 Y3.91%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
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 2Y7.12%
Revenue Next 3Y6.74%
Revenue Next 5Y6.57%
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year14.34%
EBIT Next 3Y12.07%
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 3.91% in the next year.