ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ESI • US28618M1062
29.44 USD
+0.34 (+1.17%)
Last: Feb 2, 2026, 12:53 PM
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While ESI has a great profitability rating, 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.
- 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
- ESI has a better Return On Assets (4.75%) than 79.52% of its industry peers.
- The Return On Equity of ESI (9.02%) is better than 77.11% of its industry peers.
- ESI has a better Return On Invested Capital (6.49%) than 71.08% 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 6.11%.
- 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 85.54% of its industry peers.
- ESI's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 13.90%, ESI is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
- With an excellent Gross Margin value of 42.01%, ESI belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESI is destroying value.
- ESI has more shares outstanding than it did 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
- ESI has an Altman-Z score of 2.52. 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.
- Looking at the Altman-Z score, with a value of 2.52, ESI is in the better half of the industry, outperforming 69.88% 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.
- The Debt to FCF ratio of ESI (6.02) is better than 74.70% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that ESI is somewhat dependend on debt financing.
- ESI's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. ESI outperforms 55.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.49
WACC13.15%
2.3 Liquidity
- A Current Ratio of 4.05 indicates that ESI has no problem at all paying its short term obligations.
- The Current ratio of ESI (4.05) is better 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.
- With an excellent Quick ratio value of 3.28, ESI belongs to the best of the industry, outperforming 91.57% 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.
- ESI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.87%.
- ESI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.00% yearly.
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.
- The Revenue is expected to grow by 6.57% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- A Price/Earnings ratio of 20.03 indicates a rather expensive valuation of ESI.
- ESI's Price/Earnings is on the same level as the industry average.
- ESI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 17.10, 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 60.24% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ESI to the average of the S&P500 Index (25.57), we can say ESI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than the industry average as 65.06% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.4 | ||
| EV/EBITDA | 16.17 |
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)5.05
PEG (5Y)1.98
EPS Next 2Y9.34%
EPS Next 3Y10.51%
5. Dividend
5.1 Amount
- ESI has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
- ESI's Dividend Yield is comparable with the industry average which is at 2.27.
- With a Dividend Yield of 1.07, ESI pays less dividend than the S&P500 average, which is at 1.83.
| 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
- 32.50% of the earnings are spent on dividend by ESI. This is a low number and sustainable payout ratio.
DP32.5%
EPS Next 2Y9.34%
EPS Next 3Y10.51%
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.