ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
27.5 USD
-0.08 (-0.29%)
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. ESI has an excellent profitability rating, but 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 has a better Return On Assets (4.75%) than 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 better Return On Invested Capital (6.49%) than 70.73% of its industry peers.
ESI had an Average Return On Invested Capital over the past 3 years of 5.90%. This is in line with the industry average of 6.05%.
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
Looking at the Profit Margin, with a value of 9.58%, ESI belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
ESI's Profit Margin has improved in the last couple of years.
ESI has a Operating Margin of 13.90%. This is in the better half of the industry: ESI outperforms 73.17% of its industry peers.
In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
ESI has a better Gross Margin (42.01%) than 86.59% 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
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
Compared to 5 years ago, ESI has less shares outstanding
ESI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.42 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
ESI has a better Altman-Z score (2.42) than 75.61% 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.
With a decent Debt to FCF ratio value of 6.02, ESI is doing good in the industry, outperforming 75.61% of the companies in the same industry.
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 57.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.78
WACC8.33%
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 has a Current ratio of 4.05. This is amongst the best in the industry. ESI outperforms 91.46% of its industry peers.
A Quick Ratio of 3.28 indicates that ESI has no problem at all paying its short term obligations.
ESI has a better Quick ratio (3.28) than 92.68% 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%.
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.
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
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 Y3.98%
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
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
The Price/Earnings ratio is 18.71, 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.
When comparing the Price/Earnings ratio of ESI to the average of the S&P500 Index (26.59), we can say ESI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.04, 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 rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
ESI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ESI is more expensive than 62.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESI indicates a somewhat cheap valuation: ESI is cheaper than 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.66 | ||
| EV/EBITDA | 15.44 |
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)4.7
PEG (5Y)1.85
EPS Next 2Y9.11%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.22%.
ESI's Dividend Yield is comparable with the industry average which is at 3.98.
Compared to an average S&P500 Dividend Yield of 2.31, ESI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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 2Y9.11%
EPS Next 3Y9.62%
NYSE:ESI (12/11/2025, 11:08:01 AM)
27.5
-0.08 (-0.29%)
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 Change1.97%
Market Cap6.66B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.16 (16.95%)
Short Float %5.16%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.04 | ||
| P/S | 2.66 | ||
| P/FCF | 24.66 | ||
| P/OCF | 19.72 | ||
| P/B | 2.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.44 |
EPS(TTM)1.47
EY5.35%
EPS(NY)1.71
Fwd EY6.23%
FCF(TTM)1.12
FCFY4.06%
OCF(TTM)1.39
OCFY5.07%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.7
PEG (5Y)1.85
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 | 2.42 |
F-Score7
WACC8.33%
ROIC/WACC0.78
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 18.71 and the Price/Book (PB) ratio is 2.51.
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.