ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - NYSE:ESI - US28618M1062 - Common Stock
26.99 USD
+0.64 (+2.43%)
26.99 USD
0 (0%)
Taking everything into account, ESI scores 6 out of 10 in our fundamental rating. ESI was compared to 83 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making ESI a very profitable company, without any liquidiy or solvency issues. ESI has a correct valuation and a medium 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
ESI has a Return On Assets of 4.81%. This is amongst the best in the industry. ESI outperforms 80.72% of its industry peers.
ESI's Return On Equity of 9.15% is fine compared to the rest of the industry. ESI outperforms 73.49% of its industry peers.
ESI has a better Return On Invested Capital (6.41%) than 69.88% 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 6.34%.
The last Return On Invested Capital (6.41%) for ESI is above the 3 year average (5.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 9.15% | ||
| ROIC | 6.41% |
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
With an excellent Profit Margin value of 9.66%, ESI belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
In the last couple of years the Profit Margin of ESI has grown nicely.
With a decent Operating Margin value of 13.73%, ESI is doing good in the industry, outperforming 73.49% 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 41.81%, ESI belongs to the best of the industry, outperforming 89.16% 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 | 13.73% | ||
| PM (TTM) | 9.66% | ||
| GM | 41.82% |
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
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
An Altman-Z score of 2.34 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, ESI is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
The Debt to FCF ratio of ESI is 5.97, which is a neutral value as it means it would take ESI, 5.97 years of fcf income to pay off all of its debts.
ESI has a Debt to FCF ratio of 5.97. This is in the better half of the industry: ESI outperforms 77.11% of its industry peers.
ESI has a Debt/Equity ratio of 0.62. This is a neutral value indicating ESI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, ESI perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.97 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.75
WACC8.57%
2.3 Liquidity
A Current Ratio of 4.10 indicates that ESI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.10, ESI belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
A Quick Ratio of 3.30 indicates that ESI has no problem at all paying its short term obligations.
ESI's Quick ratio of 3.30 is amongst the best of the industry. ESI outperforms 91.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.3 |
3. Growth
3.1 Past
ESI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.07%.
ESI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.10% yearly.
The Revenue has been growing slightly by 5.41% 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)5.07%
EPS 3Y1.43%
EPS 5Y10.1%
EPS Q2Q%2.78%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%2.04%
3.2 Future
The Earnings Per Share is expected to grow by 8.84% on average over the next years. This is quite good.
ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y3.21%
EPS Next 2Y7.13%
EPS Next 3Y8.84%
EPS Next 5YN/A
Revenue Next Year2.53%
Revenue Next 2Y4.15%
Revenue Next 3Y4.21%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.61 indicates a rather expensive valuation of ESI.
ESI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ESI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.33, ESI is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as ESI.
When comparing the Price/Forward Earnings ratio of ESI to the average of the S&P500 Index (22.88), we can say ESI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESI indicates a somewhat cheap valuation: ESI is cheaper than 63.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.96 | ||
| EV/EBITDA | 15.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ESI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.79
PEG (5Y)1.84
EPS Next 2Y7.13%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, ESI has a dividend in line with its industry peers.
With a Dividend Yield of 1.21, ESI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
32.40% of the earnings are spent on dividend by ESI. This is a low number and sustainable payout ratio.
DP32.4%
EPS Next 2Y7.13%
EPS Next 3Y8.84%
26.99
+0.64 (+2.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.4%
Inst Owner Change4.24%
Ins Owners7.37%
Ins Owner Change0.8%
Market Cap6.52B
Analysts81.33
Price Target29.26 (8.41%)
Short Float %3.52%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP32.4%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.11%
Min EPS beat(2)2.93%
Max EPS beat(2)3.29%
EPS beat(4)3
Avg EPS beat(4)1.8%
Min EPS beat(4)-0.19%
Max EPS beat(4)3.29%
EPS beat(8)6
Avg EPS beat(8)2.43%
EPS beat(12)8
Avg EPS beat(12)1.82%
EPS beat(16)12
Avg EPS beat(16)2.41%
Revenue beat(2)2
Avg Revenue beat(2)2.65%
Min Revenue beat(2)1.94%
Max Revenue beat(2)3.36%
Revenue beat(4)4
Avg Revenue beat(4)2.74%
Min Revenue beat(4)1.94%
Max Revenue beat(4)3.73%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)0%
PT rev (3m)6.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.7%
EPS NY rev (1m)3.7%
EPS NY rev (3m)4.8%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)3.21%
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)3.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.33 | ||
| P/S | 2.62 | ||
| P/FCF | 23.96 | ||
| P/OCF | 19.42 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.1 |
EPS(TTM)1.45
EY5.37%
EPS(NY)1.65
Fwd EY6.12%
FCF(TTM)1.13
FCFY4.17%
OCF(TTM)1.39
OCFY5.15%
SpS10.3
BVpS10.87
TBVpS-1.33
PEG (NY)5.79
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 9.15% | ||
| ROCE | 7.35% | ||
| ROIC | 6.41% | ||
| ROICexc | 7.23% | ||
| ROICexgc | 25.45% | ||
| OM | 13.73% | ||
| PM (TTM) | 9.66% | ||
| GM | 41.82% | ||
| FCFM | 10.94% |
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%
ROICexcg growth 3Y-6.36%
ROICexcg 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-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.97 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 41.68% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.95% | ||
| Profit Quality | 113.23% | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 3.3 | ||
| Altman-Z | 2.34 |
F-Score8
WACC8.57%
ROIC/WACC0.75
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)5.07%
EPS 3Y1.43%
EPS 5Y10.1%
EPS Q2Q%2.78%
EPS Next Y3.21%
EPS Next 2Y7.13%
EPS Next 3Y8.84%
EPS Next 5YN/A
Revenue 1Y (TTM)5.41%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%2.04%
Revenue Next Year2.53%
Revenue Next 2Y4.15%
Revenue Next 3Y4.21%
Revenue Next 5YN/A
EBIT growth 1Y10.69%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year14.73%
EBIT Next 3Y10.97%
EBIT Next 5YN/A
FCF growth 1Y-13.72%
FCF growth 3Y2.24%
FCF growth 5YN/A
OCF growth 1Y-7.87%
OCF growth 3Y4.08%
OCF growth 5Y108.63%