ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - NYSE:ESI - US28618M1062 - Common Stock
25.89 USD
-0.84 (-3.14%)
25.89 USD
0 (0%)
Overall ESI gets a fundamental rating of 6 out of 10. We evaluated ESI against 82 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.
In the past 5 years ESI has always been profitable.
In the past 5 years ESI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ESI (4.75%) is better than 79.27% of its industry peers.
ESI has a better Return On Equity (9.02%) than 75.61% of its industry peers.
ESI has a better Return On Invested Capital (6.49%) than 69.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESI 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
With an excellent Profit Margin value of 9.58%, ESI belongs to the best of the industry, outperforming 86.59% 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 73.17% of its industry peers.
ESI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 42.01%, ESI belongs to the top of the industry, outperforming 87.80% 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 | 13.9% | ||
| 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.
Compared to 1 year ago, ESI has more shares outstanding
Compared to 5 years ago, ESI has less shares outstanding
ESI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.32, ESI is doing good in the industry, outperforming 70.73% 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.
ESI has a Debt to FCF ratio of 6.02. This is in the better half of the industry: ESI outperforms 78.05% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that ESI is somewhat dependend on debt financing.
ESI's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. ESI outperforms 57.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.8
WACC8.14%
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 91.46% of the companies in the same industry.
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.
The Quick ratio of ESI (3.28) is better than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
ESI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.26%.
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%.
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)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
Based on estimates for the next years, ESI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.71% on average per year.
ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
EPS Next Y4%
EPS Next 2Y8.64%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue Next Year2.81%
Revenue Next 2Y5.39%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
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
ESI is valuated rather expensively with a Price/Earnings ratio of 17.61.
ESI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ESI to the average of the S&P500 Index (25.89), we can say ESI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.23, the valuation of ESI can be described as correct.
ESI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ESI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 15.23 |
4.2 Price Multiples
ESI's Enterprise Value to EBITDA is on the same level as the industry average.
ESI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ESI is cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.18 | ||
| EV/EBITDA | 14.6 |
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)1.74
EPS Next 2Y8.64%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
ESI has a Yearly Dividend Yield of 1.20%.
ESI's Dividend Yield is comparable with the industry average which is at 4.00.
With a Dividend Yield of 1.20, ESI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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%
25.89
-0.84 (-3.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change1.12%
Ins Owners7.37%
Ins Owner Change3.81%
Market Cap6.26B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target30.54 (17.96%)
Short Float %4.11%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)3.97%
PT rev (3m)4.37%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0.76%
EPS NY rev (3m)4.49%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 15.23 | ||
| P/S | 2.5 | ||
| P/FCF | 23.18 | ||
| P/OCF | 18.54 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.6 |
EPS(TTM)1.47
EY5.68%
EPS(NY)1.7
Fwd EY6.56%
FCF(TTM)1.12
FCFY4.31%
OCF(TTM)1.4
OCFY5.39%
SpS10.34
BVpS10.98
TBVpS-1.06
PEG (NY)4.41
PEG (5Y)1.74
Graham Number19.06
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
WACC8.14%
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 5YN/A
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 5YN/A
EBIT growth 1Y7.06%
EBIT growth 3Y4.67%
EBIT growth 5Y6.66%
EBIT Next Year13.59%
EBIT Next 3Y9.79%
EBIT Next 5YN/A
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 17.61 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.