Elementis plc

BATS-CHIXE:ELML Stock Report

Market Cap: UK£779.3m

Elementis Valuation

Is ELML undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ELML when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELML (£1.31) is trading below our estimate of fair value (£3.38)

Significantly Below Fair Value: ELML is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELML?

Key metric: As ELML is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ELML. This is calculated by dividing ELML's market cap by their current revenue.
What is ELML's PS Ratio?
PS Ratio1.3x
SalesUS$732.20m
Market CapUS$987.77m

Price to Sales Ratio vs Peers

How does ELML's PS Ratio compare to its peers?

The above table shows the PS ratio for ELML vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
VCT Victrex
2.6x5.8%UK£751.3m
SYNT Synthomer
0.1x5.0%UK£264.3m
JMAT Johnson Matthey
0.2x-50.4%UK£2.2b
TET Treatt
1.7x7.2%UK£244.7m
ELML Elementis
1.3x3.4%UK£779.3m

Price-To-Sales vs Peers: ELML is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does ELML's PS Ratio compare vs other companies in the GB Chemicals Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
JMAT Johnson Matthey
0.2x-50.4%US$2.85b
SYNT Synthomer
0.1x5.0%US$335.05m
CAR Carclo
0.2x7.0%US$31.55m
HEIQ HeiQ
0.2xn/aUS$9.61m
No. of Companies6PS01.22.43.64.86+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ELML is expensive based on its Price-To-Sales Ratio (1.3x) compared to the UK Chemicals industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is ELML's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ELML PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: ELML is expensive based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ELML forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.31
UK£1.82
+38.2%
8.4%UK£2.05UK£1.50n/a8
Nov ’25UK£1.32
UK£1.77
+33.5%
9.3%UK£2.01UK£1.40n/a8
Oct ’25UK£1.51
UK£1.73
+15.0%
10.0%UK£1.95UK£1.33n/a8
Sep ’25UK£1.61
UK£1.74
+8.1%
9.7%UK£1.99UK£1.36n/a8
Aug ’25UK£1.59
UK£1.65
+3.8%
10.1%UK£1.85UK£1.28n/a8
Jul ’25UK£1.47
UK£1.64
+11.6%
8.9%UK£1.80UK£1.30n/a8
Jun ’25UK£1.52
UK£1.64
+7.9%
8.9%UK£1.80UK£1.30n/a8
May ’25UK£1.42
UK£1.65
+15.9%
8.7%UK£1.80UK£1.31n/a8
Apr ’25UK£1.47
UK£1.62
+10.4%
11.0%UK£1.82UK£1.28n/a8
Mar ’25UK£1.42
UK£1.52
+6.9%
10.6%UK£1.72UK£1.27n/a8
Feb ’25UK£1.40
UK£1.51
+8.0%
11.1%UK£1.72UK£1.27n/a8
Jan ’25UK£1.28
UK£1.37
+7.2%
12.2%UK£1.70UK£1.09n/a8
Dec ’24UK£1.21
UK£1.37
+13.2%
12.2%UK£1.70UK£1.09n/a8
Nov ’24UK£1.19
UK£1.39
+16.2%
13.5%UK£1.80UK£1.10UK£1.328
Oct ’24UK£1.25
UK£1.39
+10.8%
13.0%UK£1.77UK£1.10UK£1.519
Sep ’24UK£1.16
UK£1.36
+17.2%
12.4%UK£1.72UK£1.12UK£1.619
Aug ’24UK£1.12
UK£1.33
+18.9%
13.3%UK£1.70UK£1.10UK£1.599
Jul ’24UK£1.02
UK£1.35
+32.3%
11.2%UK£1.63UK£1.13UK£1.479
Jun ’24UK£1.07
UK£1.35
+26.5%
11.2%UK£1.63UK£1.13UK£1.529
May ’24UK£1.26
UK£1.35
+7.1%
11.4%UK£1.63UK£1.13UK£1.429
Apr ’24UK£1.20
UK£1.36
+13.8%
11.2%UK£1.67UK£1.16UK£1.479
Mar ’24UK£1.27
UK£1.38
+8.8%
13.0%UK£1.72UK£1.09UK£1.429
Feb ’24UK£1.23
UK£1.34
+9.5%
13.2%UK£1.67UK£1.03UK£1.409
Jan ’24UK£1.20
UK£1.32
+9.8%
13.5%UK£1.69UK£1.05UK£1.2810
Dec ’23UK£1.16
UK£1.30
+12.1%
14.9%UK£1.70UK£1.04UK£1.2110
Nov ’23UK£0.93
UK£1.38
+47.9%
13.7%UK£1.79UK£1.11UK£1.1910

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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