ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
NYSE:ESI • US28618M1062
34.68 USD
-0.41 (-1.17%)
At close: Mar 2, 2026
34.68 USD
0 (0%)
After Hours: 3/2/2026, 8:15:59 PM
Overall ESI gets a fundamental rating of 5 out of 10. We evaluated ESI against 83 industry peers in the Chemicals industry. While ESI has a great profitability rating, there are some minor concerns on its financial health. ESI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ESI was profitable.
- 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 3.74% is fine compared to the rest of the industry. ESI outperforms 74.70% of its industry peers.
- The Return On Equity of ESI (7.13%) is better than 72.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.73%, ESI is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
- 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 (5.73%) for ESI is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 7.13% | ||
| ROIC | 5.73% |
ROA(3y)3.71%
ROA(5y)3.78%
ROE(3y)7.48%
ROE(5y)7.73%
ROIC(3y)5.34%
ROIC(5y)5.31%
1.3 Margins
- ESI has a better Profit Margin (7.48%) than 79.52% of its industry peers.
- ESI's Profit Margin has improved in the last couple of years.
- ESI's Operating Margin of 13.41% is fine compared to the rest of the industry. ESI outperforms 69.88% of its industry peers.
- ESI's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 41.96%, ESI belongs to the best of the industry, outperforming 87.95% 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 | 13.41% | ||
| PM (TTM) | 7.48% | ||
| GM | 41.96% |
OM growth 3Y1.68%
OM growth 5Y1.33%
PM growth 3Y0.61%
PM growth 5Y12.86%
GM growth 3Y3.94%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
- ESI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ESI has been increased compared to 1 year ago.
- Compared to 5 years ago, ESI has less shares outstanding
- ESI has a better debt/assets ratio than last year.
2.2 Solvency
- ESI has an Altman-Z score of 2.82. 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 2.82, ESI is doing good in the industry, outperforming 79.52% of the companies in the same industry.
- ESI has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as ESI would need 7.14 years to pay back of all of its debts.
- ESI has a better Debt to FCF ratio (7.14) than 69.88% 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.
- Looking at the Debt to Equity ratio, with a value of 0.61, ESI is in line with its industry, outperforming 57.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.43
WACC13.45%
2.3 Liquidity
- A Current Ratio of 3.68 indicates that ESI has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.68, ESI belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
- ESI has a Quick Ratio of 3.00. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
- ESI has a better Quick ratio (3.00) than 91.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
- ESI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.47%.
- Measured over the past years, ESI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
- ESI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.84%.
- ESI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.60% yearly.
EPS 1Y (TTM)3.47%
EPS 3Y1.86%
EPS 5Y9.19%
EPS Q2Q%5.71%
Revenue 1Y (TTM)3.84%
Revenue growth 3Y0.02%
Revenue growth 5Y6.6%
Sales Q2Q%8.33%
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 11.77% yearly.
- The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y15.96%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue Next Year12.1%
Revenue Next 2Y9.2%
Revenue Next 3Y7.79%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 23.28 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 27.13, ESI is valued at the same level.
- With a Price/Forward Earnings ratio of 20.07, ESI is valued on the expensive side.
- ESI's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, ESI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 20.07 |
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 71.08% of the companies in the same industry.
- ESI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.87 | ||
| EV/EBITDA | 19.04 |
4.3 Compensation for Growth
- ESI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ESI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)2.53
EPS Next 2Y14.44%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
- ESI has a yearly dividend return of 0.90%, which is pretty low.
- ESI's Dividend Yield is comparable with the industry average which is at 2.19.
- Compared to an average S&P500 Dividend Yield of 1.82, ESI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
- On average, the dividend of ESI grows each year by 45.10%, which is quite nice.
- 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)45.1%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- ESI pays out 40.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
- ESI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.78%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
34.68
-0.41 (-1.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-17 2026-02-17/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners101.19%
Inst Owner Change-2.09%
Ins Owners7.63%
Ins Owner Change10.68%
Market Cap8.39B
Revenue(TTM)2.55B
Net Income(TTM)190.80M
Analysts81.25
Price Target38.32 (10.5%)
Short Float %5.02%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.32
Dividend Growth(5Y)45.1%
DP40.78%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-02 2026-03-02 (0.08)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.08%
Min EPS beat(2)1.63%
Max EPS beat(2)2.53%
EPS beat(4)4
Avg EPS beat(4)2.6%
Min EPS beat(4)1.63%
Max EPS beat(4)3.29%
EPS beat(8)7
Avg EPS beat(8)2.46%
EPS beat(12)9
Avg EPS beat(12)2.06%
EPS beat(16)12
Avg EPS beat(16)2.32%
Revenue beat(2)2
Avg Revenue beat(2)3.18%
Min Revenue beat(2)0.43%
Max Revenue beat(2)5.94%
Revenue beat(4)4
Avg Revenue beat(4)2.92%
Min Revenue beat(4)0.43%
Max Revenue beat(4)5.94%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)18.38%
PT rev (3m)18.53%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0.36%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)7.76%
Revenue NQ rev (3m)9.62%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 20.07 | ||
| P/S | 3.29 | ||
| P/FCF | 36.87 | ||
| P/OCF | 28.96 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.04 |
EPS(TTM)1.49
EY4.3%
EPS(NY)1.73
Fwd EY4.98%
FCF(TTM)0.94
FCFY2.71%
OCF(TTM)1.2
OCFY3.45%
SpS10.54
BVpS11.05
TBVpS-0.93
PEG (NY)1.46
PEG (5Y)2.53
Graham Number19.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 7.13% | ||
| ROCE | 7.33% | ||
| ROIC | 5.73% | ||
| ROICexc | 6.61% | ||
| ROICexgc | 23.34% | ||
| OM | 13.41% | ||
| PM (TTM) | 7.48% | ||
| GM | 41.96% | ||
| FCFM | 8.92% |
ROA(3y)3.71%
ROA(5y)3.78%
ROE(3y)7.48%
ROE(5y)7.73%
ROIC(3y)5.34%
ROIC(5y)5.31%
ROICexc(3y)5.9%
ROICexc(5y)5.79%
ROICexgc(3y)20.84%
ROICexgc(5y)22.39%
ROCE(3y)6.83%
ROCE(5y)6.79%
ROICexgc growth 3Y-0.44%
ROICexgc growth 5Y-0.29%
ROICexc growth 3Y3.75%
ROICexc growth 5Y7.11%
OM growth 3Y1.68%
OM growth 5Y1.33%
PM growth 3Y0.61%
PM growth 5Y12.86%
GM growth 3Y3.94%
GM growth 5Y-0.21%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 41.14% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 4.99 | ||
| Cash Conversion | 58.74% | ||
| Profit Quality | 119.29% | ||
| Current Ratio | 3.68 | ||
| Quick Ratio | 3 | ||
| Altman-Z | 2.82 |
F-Score6
WACC13.45%
ROIC/WACC0.43
Cap/Depr(3y)38.72%
Cap/Depr(5y)34.81%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.26%
Profit Quality(3y)159.96%
Profit Quality(5y)149.85%
High Growth Momentum
Growth
EPS 1Y (TTM)3.47%
EPS 3Y1.86%
EPS 5Y9.19%
EPS Q2Q%5.71%
EPS Next Y15.96%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y0.02%
Revenue growth 5Y6.6%
Sales Q2Q%8.33%
Revenue Next Year12.1%
Revenue Next 2Y9.2%
Revenue Next 3Y7.79%
Revenue Next 5YN/A
EBIT growth 1Y-0.49%
EBIT growth 3Y1.7%
EBIT growth 5Y8.02%
EBIT Next Year44.53%
EBIT Next 3Y20.25%
EBIT Next 5YN/A
FCF growth 1Y-22.9%
FCF growth 3Y-3.07%
FCF growth 5Y-0.43%
OCF growth 1Y-20.3%
OCF growth 3Y-0.89%
OCF growth 5Y2.09%
ELEMENT SOLUTIONS INC / ESI FAQ
Can you provide the ChartMill fundamental rating for ELEMENT SOLUTIONS INC?
ChartMill assigns a fundamental rating of 5 / 10 to ESI.
What is the valuation status for ESI stock?
ChartMill assigns a valuation rating of 3 / 10 to ELEMENT SOLUTIONS INC (ESI). This can be considered as Overvalued.
Can you provide the profitability details for ELEMENT SOLUTIONS INC?
ELEMENT SOLUTIONS INC (ESI) has a profitability rating of 7 / 10.
Can you provide the financial health for ESI stock?
The financial health rating of ELEMENT SOLUTIONS INC (ESI) is 6 / 10.
What is the earnings growth outlook for ELEMENT SOLUTIONS INC?
The Earnings per Share (EPS) of ELEMENT SOLUTIONS INC (ESI) is expected to grow by 15.96% in the next year.