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ELM: Profitability And Leadership Transition Will Support A Stronger Outlook

Specialty Additives And Asia Expansion Will Unlock New Markets

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ELM
AnalystConsensusTarget
Not Invested
Published 11 Aug 2025

Update shared on 07 Dec 2025

Fair value Increased 4.19%
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AnalystConsensusTarget's Fair Value
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1Y
21.7%
7D
0.7%

Analysts have raised their price target on Elementis by approximately 4 percent to reflect a modestly higher fair value estimate, a slightly increased discount rate, marginally weaker revenue growth expectations, and improved profit margin and future earnings multiple assumptions.

What's in the News

  • Chief Financial Officer Ralph Hewins will step down at the end of 2025 after nine years in the role, with a structured transition plan in place through March 2026 (company announcement)
  • The Board has appointed Kath Kearney-Croft as CFO designate from November 3, ahead of her formal appointment as CFO and Board member on January 1, 2026 (company announcement)
  • Kath Kearney-Croft joins Elementis from Learning Technologies Group, where she has served as CFO since 2021, bringing more than 20 years of senior finance experience across the UK and US (company announcement)

Valuation Changes

  • The fair value estimate has risen slightly from £1.90 to £1.98 per share, reflecting a modestly higher assessment of Elementis's intrinsic value.
  • The discount rate has increased marginally from 7.68 percent to 7.82 percent, indicating a slightly higher required return applied in the valuation model.
  • The revenue growth forecast has weakened modestly, moving from approximately minus 5.27 percent to minus 5.86 percent, implying a slightly steeper expected revenue decline.
  • The net profit margin assumption has improved slightly from about 21.29 percent to 21.97 percent, suggesting a small uplift in expected profitability.
  • The future P/E multiple has risen modestly from 13.95x to 14.60x, indicating a slightly higher valuation being applied to projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.