ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA - NYSE:ESI - US28618M1062 - Common Stock
27.01 USD
-0.02 (-0.07%)
24.1801 USD
-2.83 (-10.48%)
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. ESI has an excellent profitability rating, but there are some minor concerns on its financial health. ESI has a decent growth rate and is not valued too expensively.
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.
ESI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESI's Return On Assets of 4.75% is amongst the best of the industry. ESI outperforms 80.49% of its industry peers.
ESI has a Return On Equity of 9.02%. This is in the better half of the industry: ESI outperforms 75.61% 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 69.51% 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 6.23%.
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 86.59% of the companies in the same industry.
In the last couple of years the Profit Margin of ESI has grown nicely.
Looking at the Operating Margin, with a value of 13.90%, ESI is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
ESI's Operating Margin has been stable in the last couple of years.
ESI has a Gross Margin of 42.01%. This is amongst the best in the industry. ESI outperforms 89.02% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESI is destroying value.
ESI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ESI has less shares outstanding
The debt/assets ratio for ESI has been reduced compared to a year ago.
2.2 Solvency
ESI has an Altman-Z score of 2.39. 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.
Looking at the Altman-Z score, with a value of 2.39, ESI is in the better half of the industry, outperforming 67.07% 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 better Debt to FCF ratio (6.02) than 76.83% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.8
WACC8.08%
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.
ESI has a better Current ratio (4.05) than 91.46% of its industry peers.
A Quick Ratio of 3.28 indicates that ESI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.28, ESI belongs to the best of the industry, outperforming 92.68% 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.
ESI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.10% yearly.
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.
The Revenue is expected to grow by 5.20% on average over the next years.
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
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 18.37 indicates a rather expensive valuation of ESI.
The rest of the industry has a similar Price/Earnings ratio as ESI.
ESI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.13.
With a Price/Forward Earnings ratio of 15.89, ESI is valued correctly.
ESI's Price/Forward Earnings is on the same level as the industry average.
ESI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 15.89 |
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 60.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.18 | ||
| EV/EBITDA | 15.14 |
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)4.6
PEG (5Y)1.82
EPS Next 2Y8.64%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, ESI has a reasonable but not impressive dividend return.
ESI's Dividend Yield is comparable with the industry average which is at 4.05.
With a Dividend Yield of 1.18, ESI pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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%
27.01
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change0.61%
Ins Owners7.37%
Ins Owner Change2.75%
Market Cap6.53B
Revenue(TTM)2.50B
Net Income(TTM)239.40M
Analysts81.25
Price Target30.54 (13.07%)
Short Float %4.11%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)4.37%
PT rev (3m)8.13%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)0.35%
EPS NY rev (3m)4.07%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 15.89 | ||
| P/S | 2.61 | ||
| P/FCF | 24.18 | ||
| P/OCF | 19.34 | ||
| P/B | 2.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.14 |
EPS(TTM)1.47
EY5.44%
EPS(NY)1.7
Fwd EY6.29%
FCF(TTM)1.12
FCFY4.14%
OCF(TTM)1.4
OCFY5.17%
SpS10.34
BVpS10.98
TBVpS-1.06
PEG (NY)4.6
PEG (5Y)1.82
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 | 2.39 |
F-Score7
WACC8.08%
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 18.37 and the Price/Book (PB) ratio is 2.46.
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.