ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
26.32 USD
+0.05 (+0.19%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. ESI has a correct valuation and a medium 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.
Each year in the past 5 years ESI has been profitable.
Each year in the past 5 years ESI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.75%, ESI is doing good in the industry, outperforming 79.01% of the companies in the same industry.
ESI has a Return On Equity of 9.02%. This is in the better half of the industry: ESI outperforms 76.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, ESI is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
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 6.15%.
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
With an excellent Profit Margin value of 9.58%, ESI belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
ESI's Profit Margin has improved in the last couple of years.
The Operating Margin of ESI (13.90%) is better than 72.84% 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 87.65% 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.
ESI has more shares outstanding than it did 1 year ago.
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.
ESI has a Altman-Z score of 2.34. This is in the better half of the industry: ESI outperforms 70.37% 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.
Looking at the Debt to FCF ratio, with a value of 6.02, ESI is in the better half of the industry, outperforming 76.54% 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 | 2.34 |
ROIC/WACC0.78
WACC8.28%
2.3 Liquidity
A Current Ratio of 4.05 indicates that ESI has no problem at all paying its short term obligations.
ESI has a better Current ratio (4.05) than 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.
The Quick ratio of ESI (3.28) is better than 92.59% 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
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.
ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 17.90, ESI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ESI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.41, ESI is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.49 indicates a correct valuation of ESI.
ESI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ESI to the average of the S&P500 Index (35.40), we can say ESI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than 60.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than the industry average as 65.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.6 | ||
| EV/EBITDA | 14.8 |
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)4.48
PEG (5Y)1.77
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.
With a Dividend Yield of 1.24, ESI pays less dividend than the S&P500 average, which is at 2.32.
| 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
32.50% of the earnings are spent on dividend by ESI. This is a low number and sustainable payout ratio.
DP32.5%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
NYSE:ESI (12/5/2025, 10:28:10 AM)
26.32
+0.05 (+0.19%)
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 Cap6.37B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.33 (22.83%)
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 | 17.9 | ||
| Fwd PE | 15.49 | ||
| P/S | 2.55 | ||
| P/FCF | 23.6 | ||
| P/OCF | 18.88 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.8 |
EPS(TTM)1.47
EY5.59%
EPS(NY)1.7
Fwd EY6.46%
FCF(TTM)1.12
FCFY4.24%
OCF(TTM)1.39
OCFY5.3%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.48
PEG (5Y)1.77
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 | 2.34 |
F-Score7
WACC8.28%
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 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 17.9 and the Price/Book (PB) ratio is 2.4.
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.