Elementis plc

LSE:ELM Stock Report

Market Cap: UK£793.4m

Elementis Valuation

Is ELM 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 ELM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELM (£1.34) is trading below our estimate of fair value (£3.42)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ELM. This is calculated by dividing ELM's market cap by their current revenue.
What is ELM's PS Ratio?
PS Ratio1.4x
SalesUS$732.20m
Market CapUS$1.00b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ELM 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£750.5m
SYNT Synthomer
0.1x5.0%UK£260.1m
JMAT Johnson Matthey
0.2x-43.3%UK£2.5b
TET Treatt
1.8x7.2%UK£255.0m
ELM Elementis
1.4x3.4%UK£793.4m

Price-To-Sales vs Peers: ELM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

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

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
JMAT Johnson Matthey
0.2x-43.3%US$3.21b
SYNT Synthomer
0.1x5.0%US$328.68m
CAR Carclo
0.2x7.0%US$29.04m
HEIQ HeiQ
0.2xn/aUS$9.61m
ELM 1.4xIndustry Avg. 1.2xNo. of Companies6PS01.22.43.64.86+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ELM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the UK Chemicals industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is ELM'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.

ELM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: ELM is expensive based on its Price-To-Sales Ratio (1.4x) 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 ELM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.34
UK£1.82
+35.9%
8.4%UK£2.06UK£1.50n/a8
Nov ’25UK£1.32
UK£1.77
+33.5%
9.3%UK£2.01UK£1.40n/a8
Oct ’25UK£1.50
UK£1.73
+15.6%
10.0%UK£1.95UK£1.33n/a8
Sep ’25UK£1.62
UK£1.74
+7.3%
9.7%UK£1.99UK£1.36n/a8
Aug ’25UK£1.59
UK£1.65
+3.7%
10.1%UK£1.85UK£1.28n/a8
Jul ’25UK£1.47
UK£1.64
+11.9%
8.9%UK£1.80UK£1.30n/a8
Jun ’25UK£1.50
UK£1.64
+9.4%
8.9%UK£1.80UK£1.30n/a8
May ’25UK£1.42
UK£1.65
+16.0%
8.7%UK£1.80UK£1.31n/a8
Apr ’25UK£1.48
UK£1.62
+9.5%
11.0%UK£1.82UK£1.28n/a8
Mar ’25UK£1.41
UK£1.52
+7.6%
10.6%UK£1.72UK£1.27n/a8
Feb ’25UK£1.39
UK£1.51
+8.5%
11.1%UK£1.72UK£1.27n/a8
Jan ’25UK£1.28
UK£1.37
+7.4%
12.2%UK£1.70UK£1.09n/a8
Dec ’24UK£1.22
UK£1.37
+12.3%
12.2%UK£1.70UK£1.09n/a8
Nov ’24UK£1.19
UK£1.39
+16.4%
13.5%UK£1.80UK£1.10UK£1.328
Oct ’24UK£1.24
UK£1.39
+11.7%
13.0%UK£1.77UK£1.10UK£1.509
Sep ’24UK£1.16
UK£1.36
+17.2%
12.4%UK£1.72UK£1.12UK£1.629
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
+32.7%
11.2%UK£1.63UK£1.13UK£1.479
Jun ’24UK£1.06
UK£1.35
+27.2%
11.2%UK£1.63UK£1.13UK£1.509
May ’24UK£1.26
UK£1.35
+7.2%
11.4%UK£1.63UK£1.13UK£1.429
Apr ’24UK£1.19
UK£1.36
+14.5%
11.2%UK£1.67UK£1.16UK£1.489
Mar ’24UK£1.27
UK£1.38
+9.3%
13.0%UK£1.72UK£1.09UK£1.419
Feb ’24UK£1.22
UK£1.34
+9.9%
13.2%UK£1.67UK£1.03UK£1.399
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£1.2210
Nov ’23UK£0.94
UK£1.38
+46.6%
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.

Discover undervalued companies

NV Bekaert

€1.7b

Provides steel wire transformation and coating technologies worldwide.

0OQJ

€32.08

7D

-2.2%

1Y

-22.3%

Elkem

NOK 11.5b

Engages in the provision of advanced material solutions worldwide.

0SFN

NOK 18.08

7D

5.0%

1Y

-1.6%

TFF Group

€687.3m

Manufactures and distributes barrels and wood products for the aging of wines and alcohols in France, rest of Europe, the United States, Asia, and internationally.

0IH4

€31.20

7D

-4.0%

1Y

-25.5%