ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
25.56 USD
-0.18 (-0.7%)
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 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
ESI had positive earnings in the past year.
ESI had a positive operating cash flow in the past year.
ESI had positive earnings in each of the past 5 years.
ESI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ESI (4.75%) is better than 79.76% of its industry peers.
ESI's Return On Equity of 9.02% is fine compared to the rest of the industry. ESI outperforms 77.38% of its industry peers.
ESI's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. ESI outperforms 71.43% 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 6.09%.
The last Return On Invested Capital (6.49%) for ESI is above the 3 year average (5.90%), which is a sign of increasing profitability.
| 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 85.71% of its industry peers.
ESI's Profit Margin has improved in the last couple of years.
ESI has a better Operating Margin (13.90%) than 72.62% of its industry peers.
ESI's Operating Margin has been stable in the last couple of years.
ESI has a better Gross Margin (42.01%) than 86.90% 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 | 13.9% | ||
| 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.
The number of shares outstanding for ESI has been reduced compared to 5 years ago.
Compared to 1 year ago, ESI has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.31, ESI is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
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 76.19% 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.
ESI has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.51
WACC12.81%
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.
With an excellent Current ratio value of 4.05, ESI belongs to the best of the industry, outperforming 91.67% 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.
ESI has a Quick ratio of 3.28. This is amongst the best in the industry. ESI outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.26% 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 10.10% on average per year.
ESI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.87%.
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
Based on estimates for the next years, ESI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.64% on average per year.
ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y3.98%
EPS Next 2Y9.11%
EPS Next 3Y9.62%
EPS Next 5Y9.64%
Revenue Next Year3.01%
Revenue Next 2Y6.72%
Revenue Next 3Y6.31%
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.
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
With a Price/Earnings ratio of 17.39, ESI is valued on the expensive side.
ESI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.61, ESI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.91, ESI is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as ESI.
ESI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than 61.90% of the companies in the same industry.
66.67% 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 | 22.92 | ||
| EV/EBITDA | 14.54 |
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)4.37
PEG (5Y)1.72
EPS Next 2Y9.11%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
ESI's Dividend Yield is comparable with the industry average which is at 2.46.
Compared to the average S&P500 Dividend Yield of 1.87, ESI is paying slightly less dividend.
| 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
ESI pays out 32.50% of its income as dividend. This is a sustainable payout ratio.
DP32.5%
EPS Next 2Y9.11%
EPS Next 3Y9.62%
NYSE:ESI (12/23/2025, 2:16:52 PM)
25.56
-0.18 (-0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.22%
Inst Owner Change1.13%
Ins Owners7.39%
Ins Owner Change14.51%
Market Cap6.19B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.16 (25.82%)
Short Float %5.97%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)5.29%
PT rev (3m)9.88%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 14.91 | ||
| P/S | 2.47 | ||
| P/FCF | 22.92 | ||
| P/OCF | 18.33 | ||
| P/B | 2.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.54 |
EPS(TTM)1.47
EY5.75%
EPS(NY)1.71
Fwd EY6.71%
FCF(TTM)1.12
FCFY4.36%
OCF(TTM)1.39
OCFY5.45%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.37
PEG (5Y)1.72
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 | 2.31 |
F-Score7
WACC12.81%
ROIC/WACC0.51
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 Y3.98%
EPS Next 2Y9.11%
EPS Next 3Y9.62%
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 2Y6.72%
Revenue Next 3Y6.31%
Revenue Next 5Y6.57%
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year14.34%
EBIT Next 3Y11.74%
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 of ELEMENT SOLUTIONS INC (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.
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 17.39 and the Price/Book (PB) ratio is 2.33.
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 3.98% in the next year.