ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
25.92 USD
+0.01 (+0.04%)
25.92 USD
0 (0%)
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. While ESI has a great profitability rating, 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
ESI had positive earnings in the past year.
In the past year ESI had a positive cash flow from operations.
In the past 5 years ESI has always been profitable.
ESI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.75%, ESI is in the better half of the industry, outperforming 79.01% of the companies in the same industry.
ESI has a better Return On Equity (9.02%) than 76.54% of its industry peers.
ESI's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. ESI outperforms 70.37% 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 6.07%.
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.
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.
In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 42.01%, ESI belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESI is destroying value.
The number of shares outstanding for ESI has been increased compared to 1 year ago.
The number of shares outstanding for ESI has been reduced compared to 5 years ago.
ESI has a better debt/assets ratio than last year.
2.2 Solvency
ESI has an Altman-Z score of 2.32. 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 has a Altman-Z score of 2.32. This is in the better half of the industry: ESI outperforms 69.14% 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.
ESI has a Debt to FCF ratio of 6.02. This is in the better half of the industry: ESI outperforms 76.54% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.8
WACC8.12%
2.3 Liquidity
A Current Ratio of 4.05 indicates that ESI has no problem at all paying 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.
ESI has a Quick Ratio of 3.28. This indicates that ESI is financially healthy and has no problem in meeting 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
The Earnings Per Share has been growing slightly by 4.26% over the past year.
The Earnings Per Share has been growing by 10.10% on average over the past years. This is quite good.
Looking at the last year, ESI shows a small growth in Revenue. The Revenue has grown by 3.87% in the last year.
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
A Price/Earnings ratio of 17.63 indicates a rather expensive valuation of ESI.
ESI's Price/Earnings ratio is in line with the industry average.
ESI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.25, which indicates a correct valuation of ESI.
The rest of the industry has a similar Price/Forward Earnings ratio as ESI.
ESI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESI indicates a slightly more expensive valuation: ESI is more expensive than 61.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.24 | ||
| EV/EBITDA | 14.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ESI may justify a higher PE ratio.
PEG (NY)4.41
PEG (5Y)1.75
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.
Compared to an average industry Dividend Yield of 3.94, ESI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 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
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%
25.92
+0.01 (+0.04%)
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 Cap6.27B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.33 (24.73%)
Short Float %4.57%
Short Ratio4.62
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 | 17.63 | ||
| Fwd PE | 15.25 | ||
| P/S | 2.51 | ||
| P/FCF | 23.24 | ||
| P/OCF | 18.59 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.63 |
EPS(TTM)1.47
EY5.67%
EPS(NY)1.7
Fwd EY6.56%
FCF(TTM)1.12
FCFY4.3%
OCF(TTM)1.39
OCFY5.38%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.41
PEG (5Y)1.75
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 | 2.32 |
F-Score7
WACC8.12%
ROIC/WACC0.8
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 17.63 and the Price/Book (PB) ratio is 2.36.
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.