LSE:ELM

Stock Analysis Report

Executive Summary

Elementis plc manufactures and sells specialty chemicals in North and South America, Europe, and Asia.

Snowflake

Fundamentals

Good value with moderate growth potential.

Risks

  • Elementis has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.0%

LSE:ELM

-0.4%

GB Chemicals

-0.2%

GB Market


1 Year Return

-50.0%

LSE:ELM

-20.4%

GB Chemicals

-1.4%

GB Market

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

ELM underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.


Share holder returns

ELMIndustryMarket
7 Day-4.0%-0.4%-0.2%
30 Day-5.3%-1.0%1.7%
90 Day-26.9%-9.9%0.2%
1 Year-43.5%-50.0%-17.3%-20.4%3.1%-1.4%
3 Year-25.6%-38.6%14.2%5.2%27.8%11.7%
5 Year-32.4%-48.7%38.9%17.6%35.5%7.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Elementis is good value based on earnings compared to the GB Chemicals industry average.

Elementis is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Elementis is good value based on expected growth next year.


Price Based on Value of Assets

Elementis is good value based on assets compared to the GB Chemicals industry average.


Next Steps

Future Growth

How is Elementis expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Elementis's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Elementis's earnings are expected to grow by 18.8% yearly, however this is not considered high growth (20% yearly).

Elementis's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Elementis's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Elementis's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Elementis performed over the past 5 years?

-12.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Elementis's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Elementis's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Elementis's 1-year earnings growth is negative, it can't be compared to the GB Chemicals industry average.


Return on Equity

Elementis has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Elementis used its assets less efficiently than the GB Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Elementis's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Elementis's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Elementis's level of debt (64.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (2% vs 64.9% today).

Debt is not well covered by operating cash flow (14.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

5.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Elementis's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).

Elementis's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.39%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Paul Waterman (55yo)

3.4yrs

Tenure

US$1,229,000

Compensation

Mr. Paul Waterman has been the Group Chief Executive Officer and Executive Director of Elementis plc since February 8, 2016. Mr. Waterman served as Global Chief Executive Officer of Lubricants at BP p.l.c. ...


CEO Compensation Analysis

Paul's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Paul's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

The tenure for the Elementis management team is about average.


Board Age and Tenure

4.0yrs

Average Tenure

56.5yo

Average Age

The tenure for the Elementis board of directors is about average.


Insider Trading

More shares have been bought than sold by Elementis individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£13,98106 Jun 19
Ralph Hewins
EntityIndividual
Role
Group Chief Financial Officer & Executive Director
Member of the Board of Directors
Shares10,000
Max PriceUK£1.40
BuyUK£9,38306 Jun 19
Paul Waterman
EntityIndividual
Role
Group Chief Executive Officer & Executive Director
Member of the Board of Directors
Shares6,500
Max PriceUK£1.44
BuyUK£4,01015 Mar 19
Paul Waterman
EntityIndividual
Role
Group Chief Executive Officer & Executive Director
Member of the Board of Directors
Shares2,500
Max PriceUK£1.60
BuyUK£10,17229 Oct 18
Nicholas Salmon
EntityIndividual
Role
Lead Director
Shares5,000
Max PriceUK£2.03

Ownership Breakdown


Management Team

  • Ralph Hewins (55yo)

    Group Chief Financial Officer & Executive Director

    • Tenure: 2.7yrs
    • Compensation: $614.00k
  • Paul Waterman (55yo)

    Group Chief Executive Officer & Executive Director

    • Tenure: 3.4yrs
    • Compensation: $1.23m
  • Mark Su

    Managing Director of China Region

  • Walker Allen

    General Counsel & Chief Compliance Officer

    • Tenure: 20.5yrs
  • Chris Shepherd (54yo)

    Chief Human Resources Officer

    • Tenure: 1.7yrs
  • Christian Kather

    Vice President of Talc

  • Laura Higgins

    Company Secretary

    • Tenure: 1.5yrs
  • James Curran

    Director of Investor Relations


Board Members

  • Nick Salmon (66yo)

    Senior Independent Director

    • Tenure: 4.6yrs
    • Compensation: $57.00k
  • Andy Duff (60yo)

    Non-Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: $185.00k
  • Anne Hyland (58yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: $57.00k
  • Steve Good (58yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: $57.00k
  • Ralph Hewins (55yo)

    Group Chief Financial Officer & Executive Director

    • Tenure: 2.8yrs
    • Compensation: $614.00k
  • Paul Waterman (55yo)

    Group Chief Executive Officer & Executive Director

    • Tenure: 3.4yrs
    • Compensation: $1.23m
  • Sandy Boss (52yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: $49.00k
  • Dorothée Deuring (51yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: $49.00k

Company Information

Elementis plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Elementis plc
  • Ticker: ELM
  • Exchange: LSE
  • Founded: 1844
  • Industry: specialty chemicals
  • Sector: materials
  • Market Cap: UK£755.701m
  • Shares outstanding: 579.53m
  • Website: Click here

Number of Employees


Location

  • Elementis plc
  • Caroline House
  • 55 - 57 High Holborn
  • London
  • Greater London
  • WC1V 6DX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMNS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ELMLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
E3EDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ELMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
ELMT.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2013

Biography

Elementis plc manufactures and sells specialty chemicals in North and South America, Europe, and Asia. It operates through Specialty Products and Chromium segments. The Specialty Products segment offers fu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/15 20:39
End of Day Share Price2019/07/15 00:00
Earnings2018/12/31
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.