ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESI - US28618M1062 - Common Stock
25.74 USD
+0.02 (+0.08%)
25.74 USD
0 (0%)
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 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
ESI had positive earnings in the past year.
ESI had a positive operating cash flow in the past year.
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's Return On Assets of 4.75% is fine compared to the rest of the industry. ESI outperforms 79.76% of its industry peers.
ESI has a better Return On Equity (9.02%) than 77.38% of its industry peers.
With a decent Return On Invested Capital value of 6.49%, ESI is doing good in the industry, outperforming 71.43% 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 6.09%.
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 85.71% of its industry peers.
ESI's Profit Margin has improved in the last couple of years.
ESI has a better Operating Margin (13.90%) than 72.62% 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 Gross Margin of 42.01%. This is amongst the best in the industry. ESI outperforms 86.90% 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.
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 2.31. 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.
With a decent Altman-Z score value of 2.31, ESI is doing good in the industry, outperforming 67.86% of the companies in the same industry.
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.
The Debt to FCF ratio of ESI (6.02) is better than 76.19% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 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 | 2.31 |
ROIC/WACC0.51
WACC12.79%
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.
With an excellent Current ratio value of 4.05, ESI belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 3.28 indicates that ESI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.28, ESI belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
| 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 Y3.91%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
EPS Next 5Y9.64%
Revenue Next Year3.01%
Revenue Next 2Y7.12%
Revenue Next 3Y6.74%
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
A Price/Earnings ratio of 17.51 indicates a rather expensive valuation of ESI.
The rest of the industry has a similar Price/Earnings ratio as ESI.
The average S&P500 Price/Earnings ratio is at 26.92. ESI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.99, which indicates a correct valuation of ESI.
ESI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESI is cheaper than 60.71% of the companies in the same industry.
ESI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 14.99 |
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 60.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.08 | ||
| EV/EBITDA | 14.54 |
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)1.73
EPS Next 2Y9.2%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.24%.
ESI's Dividend Yield is comparable with the industry average which is at 2.48.
Compared to the average S&P500 Dividend Yield of 2.00, ESI is paying slightly less dividend.
| 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 2Y9.2%
EPS Next 3Y9.81%
25.74
+0.02 (+0.08%)
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 Change14.51%
Market Cap6.23B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target32.24 (25.25%)
Short Float %5.97%
Short Ratio5.37
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)-0.26%
PT rev (3m)10.17%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 14.99 | ||
| P/S | 2.49 | ||
| P/FCF | 23.08 | ||
| P/OCF | 18.46 | ||
| P/B | 2.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.54 |
EPS(TTM)1.47
EY5.71%
EPS(NY)1.72
Fwd EY6.67%
FCF(TTM)1.12
FCFY4.33%
OCF(TTM)1.39
OCFY5.42%
SpS10.33
BVpS10.97
TBVpS-1.06
PEG (NY)4.48
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
WACC12.79%
ROIC/WACC0.51
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 Y3.91%
EPS Next 2Y9.2%
EPS Next 3Y9.81%
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 2Y7.12%
Revenue Next 3Y6.74%
Revenue Next 5Y6.57%
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year14.34%
EBIT Next 3Y12.07%
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 17.51 and the Price/Book (PB) ratio is 2.35.
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 3.91% in the next year.