ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
25.655 USD
+0.02 (+0.06%)
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 has an excellent profitability rating, but 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.
In the past year ESI had a positive cash flow from operations.
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
ESI's Return On Assets of 4.75% is fine compared to the rest of the industry. ESI outperforms 79.01% of its industry peers.
ESI has a better Return On Equity (9.02%) than 76.54% of its industry peers.
ESI has a better Return On Invested Capital (6.49%) than 70.37% 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 6.15%.
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 better Profit Margin (9.58%) than 85.19% of its industry peers.
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.
The Gross Margin of ESI (42.01%) is better 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
ESI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ESI has more shares outstanding
ESI has less shares outstanding than it did 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.
ESI's Altman-Z score of 2.31 is fine compared to the rest of the industry. ESI outperforms 70.37% of its industry peers.
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.
ESI has a better Debt to FCF ratio (6.02) than 76.54% 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 59.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.79
WACC8.24%
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's Quick ratio of 3.28 is amongst the best of the industry. ESI outperforms 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%.
ESI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.10% yearly.
Looking at the last year, ESI shows a small growth in Revenue. The Revenue has grown by 3.87% in the last year.
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
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 Y4%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
EPS Next 5Y9.64%
Revenue Next Year2.81%
Revenue Next 2Y5.39%
Revenue Next 3Y5.2%
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.
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
Based on the Price/Earnings ratio of 17.45, the valuation of ESI can be described as rather expensive.
ESI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.11, ESI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.10, the valuation of ESI can be described as correct.
ESI's Price/Forward Earnings ratio is in line with the industry average.
ESI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
ESI's Enterprise Value to EBITDA ratio is in line with 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 | 23 | ||
| EV/EBITDA | 14.49 |
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)1.73
EPS Next 2Y8.64%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
ESI's Dividend Yield is comparable with the industry average which is at 3.88.
Compared to an average S&P500 Dividend Yield of 2.32, ESI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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%
NYSE:ESI (12/2/2025, 3:30:07 PM)
25.655
+0.02 (+0.06%)
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 Cap6.21B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.33 (26.02%)
Short Float %5.16%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)5.84%
PT rev (3m)10.46%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 15.1 | ||
| P/S | 2.48 | ||
| P/FCF | 23 | ||
| P/OCF | 18.4 | ||
| P/B | 2.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.49 |
EPS(TTM)1.47
EY5.73%
EPS(NY)1.7
Fwd EY6.62%
FCF(TTM)1.12
FCFY4.35%
OCF(TTM)1.39
OCFY5.43%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.37
PEG (5Y)1.73
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
WACC8.24%
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)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 5Y9.64%
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 5Y6.57%
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year13.59%
EBIT Next 3Y9.79%
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 17.45 and the Price/Book (PB) ratio is 2.34.
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.