DB:PLQ

Stock Analysis Report

Element Solutions

Executive Summary

Element Solutions Inc produces and sells specialty chemical products worldwide.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Element Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.3%

DB:PLQ

-1.3%

DE Chemicals

-0.7%

DE Market


1 Year Return

-25.5%

DB:PLQ

-21.3%

DE Chemicals

-10.8%

DE Market

PLQ underperformed the Chemicals industry which returned -20.6% over the past year.

PLQ underperformed the Market in Germany which returned -10% over the past year.


Share holder returns

PLQIndustryMarket
7 Day-3.3%-1.3%-0.7%
30 Day-9.9%-4.5%-3.9%
90 Day-10.0%-5.6%-4.3%
1 Year-25.5%-25.5%-18.2%-21.3%-8.0%-10.8%
3 Year-0.5%-0.5%5.1%-4.6%9.8%0.3%
5 Year-59.9%-59.9%9.0%-7.1%24.0%6.8%

Price Volatility Vs. Market

How volatile is Element Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Element Solutions undervalued based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Element Solutions's share price is below the future cash flow value, and at a moderate discount (> 20%).

Element Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Element Solutions is loss making, we can't compare its value to the DE Chemicals industry average.

Element Solutions is loss making, we can't compare the value of its earnings to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Element Solutions, we can't assess if its growth is good value.


Price Based on Value of Assets

Element Solutions is good value based on assets compared to the DE Chemicals industry average.


Next Steps

Future Growth

How is Element Solutions expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

66.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Element Solutions's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Element Solutions's earnings are expected to grow significantly at over 20% yearly.

Element Solutions's revenue growth is positive but not above the Germany market average.

Element Solutions's earnings growth is expected to exceed the Germany market average.

Element Solutions's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Element Solutions is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Element Solutions performed over the past 5 years?

27.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Element Solutions does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Element Solutions's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Element Solutions's 1-year growth to the DE Chemicals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Element Solutions has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Element Solutions used its assets more efficiently than the DE Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Element Solutions improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Element Solutions's financial position?


Financial Position Analysis

Element Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Element Solutions's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Element Solutions's level of debt (71.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45.9% vs 71.7% today).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Element Solutions has sufficient cash runway for more than 3 years based on current free cash flow.

Element Solutions has sufficient cash runway for 2.3 years if free cash flow continues to grow at historical rates of 63.3% each year.


Next Steps

Dividend

What is Element Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Element Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Element Solutions's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Element Solutions has not reported any payouts.

Unable to verify if Element Solutions's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Element Solutions has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Element Solutions's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of Element Solutions's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Ben Gliklich (34yo)

0.6yrs

Tenure

US$2,035,926

Compensation

Mr. Benjamin H. Gliklich, also known as Ben, is Chief Executive Officer and Director at Platform Specialty Products Corporation (now Element Solutions Inc.) since January 31, 2019. Mr. Gliklich was Executi ...


CEO Compensation Analysis

Ben's remuneration is about average for companies of similar size in Germany.

Ben's compensation has increased whilst company is loss making.


Management Age and Tenure

0.6yrs

Average Tenure

48.5yo

Average Age

The average tenure for the Element Solutions management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.6yrs

Average Tenure

58yo

Average Age

The tenure for the Element Solutions board of directors is about average.


Insider Trading

More shares have been bought than sold by Element Solutions individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$80,76615 Aug 19
John Capps
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares10,000
Max PriceUS$8.08
BuyUS$83,73914 Aug 19
Scot Benson
EntityIndividual
Role
Member of the Board of Directors
President
Shares10,000
Max PriceUS$8.52
BuyUS$63,79309 Aug 19
Benjamin Gliklich
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,500
Max PriceUS$8.59
BuyUS$186,96315 May 19
Scot Benson
EntityIndividual
Role
Member of the Board of Directors
President
Shares20,000
Max PriceUS$9.35
BuyUS$47,47015 Mar 19
Benjamin Gliklich
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$9.49
SellUS$414,873,37705 Feb 19
Pershing Square Capital Management, L.P.
EntityCompany
Shares40,451,506
Max PriceUS$10.28
BuyUS$437,95020 Dec 18
John Capps
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares50,000
Max PriceUS$8.76
BuyUS$469,28519 Dec 18
John Capps
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares50,000
Max PriceUS$9.46
BuyUS$1,940,79717 Dec 18
Martin Ellis Franklin
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares200,000
Max PriceUS$9.70
BuyUS$130,29411 Dec 18
Igha Holdings, Lllp
EntityCompany
Shares13,500
Max PriceUS$9.65
BuyUS$1,450,05311 Dec 18
Martin Ellis Franklin
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares150,750
Max PriceUS$9.68
BuyUS$269,71726 Nov 18
Igha Holdings, Lllp
EntityCompany
Shares28,000
Max PriceUS$9.63
BuyUS$1,213,72726 Nov 18
Martin Ellis Franklin
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares126,000
Max PriceUS$9.63
BuyUS$1,213,72721 Nov 18
Martin Ellis Franklin
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares126,000
Max PriceUS$9.63
BuyUS$7,728,27621 Nov 18
Berggruen Holdings, Inc.
EntityCompany
Shares807,750
Max PriceUS$9.64
BuyUS$113,16221 Nov 18
Igha Holdings, Lllp
EntityCompany
Shares12,000
Max PriceUS$9.44
BuyUS$509,23121 Nov 18
Martin Ellis Franklin
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares54,000
Max PriceUS$9.44
BuyUS$186,79315 Nov 18
John Capps
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares20,000
Max PriceUS$9.34
BuyUS$627,41214 Nov 18
John Capps
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares65,000
Max PriceUS$9.73
BuyUS$432,54414 Nov 18
Igha Holdings, Lllp
EntityCompany
Shares45,500
Max PriceUS$9.71
BuyUS$1,946,44914 Nov 18
Martin Ellis Franklin
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares204,750
Max PriceUS$9.71
BuyUS$440,73607 Nov 18
John Capps
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares46,000
Max PriceUS$9.60
BuyUS$1,172,93407 Nov 18
Igha Holdings, Lllp
EntityCompany
Shares122,000
Max PriceUS$9.62
BuyUS$5,278,20307 Nov 18
Martin Ellis Franklin
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares549,000
Max PriceUS$9.62
BuyUS$65,11124 Aug 18
Scot Benson
EntityIndividual
Role
Member of the Board of Directors
President
Shares6,000
Max PriceUS$10.85

Ownership Breakdown


Management Team

  • Martin Ellis Franklin (54yo)

    Founder & Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$2.00m
  • John Capps (54yo)

    Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$1.96m
  • Steve Racca

    VP of Offshore Solutions

    • Tenure: 0.0yrs
  • Scot Benson (57yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$1.31m
  • Ben Gliklich (34yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$2.04m
  • Carey Dorman (30yo)

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Tom Hunsinger

    Vice President of Assembly Solutions

    • Tenure: 0.0yrs
  • Yash Nehete

    Senior Associate of Corporate Development & IR

    • Tenure: 0.0yrs
  • Michael Russnok (43yo)

    Chief Accounting Officer

    • Tenure: 0.4yrs
  • Joe D’Ambrisi

    Vice President of Electronics

    • Tenure: 0.0yrs

Board Members

  • Martin Ellis Franklin (54yo)

    Founder & Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$2.00m
  • Mike Goss (59yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$185.00k
  • Stan O'Neal (68yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$185.00k
  • Ian G. Ashken (58yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$195.00k
  • Rakesh Sachdev (63yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$7.05m
  • Chris Fraser (61yo)

    Independent Director

    • Tenure: 0.3yrs
  • Scot Benson (57yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$1.31m
  • Ben Gliklich (34yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$2.04m
  • Nichelle Maynard-Elliott (50yo)

    Independent Director

    • Tenure: 1.0yrs
    • Compensation: US$133.19k

Company Information

Element Solutions Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Element Solutions Inc
  • Ticker: PLQ
  • Exchange: DB
  • Founded: 1922
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$2.348b
  • Listing Market Cap: US$2.118b
  • Shares outstanding: 256.66m
  • Website: https://www.elementsolutionsinc.com

Number of Employees


Location

  • Element Solutions Inc
  • 500 East Broward Boulevard
  • Suite 127
  • Fort Lauderdale
  • Florida
  • 33394
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESINYSE (New York Stock Exchange)YesOrdinary SharesUSUSDJan 2014
PLQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2014

Biography

Element Solutions Inc produces and sells specialty chemical products worldwide. The company operates through two segments, Electronics and Industrial & Specialty. The Electronics segment researches, formul ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 21:52
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.