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ESI

Element SolutionsNYSE:ESI Stock Report

Last Price

US$22.93

Market Cap

US$5.7b

7D

-7.2%

1Y

30.7%

Updated

22 Jan, 2022

Data

Company Financials +
ESI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance5/6
Financial Health3/6
Dividends3/6

ESI Stock Overview

Element Solutions Inc develops, formulates, and sells various specialty chemicals in the United States, China, and internationally.

Element Solutions Competitors

DuPont de Nemours

NYSE:DD

US$40.1b

Atotech

NYSE:ATC

US$4.8b

BP

LSE:BP.

UK£74.9b

3M

NYSE:MMM

US$99.5b

Price History & Performance

Summary of all time highs, changes and price drops for Element Solutions
Historical stock prices
Current Share PriceUS$22.93
52 Week HighUS$26.92
52 Week LowUS$15.86
Beta1.52
1 Month Change-2.88%
3 Month Change0.31%
1 Year Change30.73%
3 Year Change107.32%
5 Year Change89.35%
Change since IPO53.89%

Recent News & Updates

Jan 09
Is Now An Opportune Moment To Examine Element Solutions Inc (NYSE:ESI)?

Is Now An Opportune Moment To Examine Element Solutions Inc (NYSE:ESI)?

While Element Solutions Inc ( NYSE:ESI ) might not be the most widely known stock at the moment, it saw a double-digit...

Jan 06

Revisiting Element Solutions

I covered ESI back in June and discussed how they are the best choice in the sector for the second half of the year. This has not panned out to fruition, but performance beyond expectations has been seen. In fact, I believe now may offer an even better outcome for ESI, as the top peer ENTG is at an unsustainably high valuation.

Dec 25
With EPS Growth And More, Element Solutions (NYSE:ESI) Is Interesting

With EPS Growth And More, Element Solutions (NYSE:ESI) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Nov 20
Does Element Solutions (NYSE:ESI) Have A Healthy Balance Sheet?

Does Element Solutions (NYSE:ESI) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

ESIUS ChemicalsUS Market
7D-7.2%-6.0%-6.1%
1Y30.7%9.8%4.2%

Return vs Industry: ESI exceeded the US Chemicals industry which returned 9.8% over the past year.

Return vs Market: ESI exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is ESI's price volatile compared to industry and market?
ESI volatility
ESI Average Weekly Movement4.7%
Chemicals Industry Average Movement5.7%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: ESI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ESI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
17854,400Ben Gliklichhttps://www.elementsolutionsinc.com

Element Solutions Inc develops, formulates, and sells various specialty chemicals in the United States, China, and internationally. The company operates in two segments, Electronics, and Industrial & Specialty. The Electronics segment researches, formulates, and sells specialty chemicals and materials for various types of electronics hardware products.

Element Solutions Fundamentals Summary

How do Element Solutions's earnings and revenue compare to its market cap?
ESI fundamental statistics
Market CapUS$5.68b
Earnings (TTM)US$227.30m
Revenue (TTM)US$2.29b

25.0x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESI income statement (TTM)
RevenueUS$2.29b
Cost of RevenueUS$1.34b
Gross ProfitUS$946.70m
ExpensesUS$719.40m
EarningsUS$227.30m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.92
Gross Margin41.35%
Net Profit Margin9.93%
Debt/Equity Ratio77.4%

How did ESI perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

24%

Payout Ratio

Valuation

Is Element Solutions undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESI ($22.93) is trading below our estimate of fair value ($50.18)

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


Price To Earnings Ratio

PE vs Industry: ESI is poor value based on its PE Ratio (25x) compared to the US Chemicals industry average (20.3x).

PE vs Market: ESI is poor value based on its PE Ratio (25x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ESI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ESI's PB Ratio (2.3x) is in line with the US Chemicals industry average.


Future Growth

How is Element Solutions forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESI's forecast earnings growth (21% per year) is above the savings rate (2%).

Earnings vs Market: ESI's earnings (21% per year) are forecast to grow faster than the US market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ESI's revenue (7.7% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: ESI's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESI's Return on Equity is forecast to be low in 3 years time (15.8%).


Past Performance

How has Element Solutions performed over the past 5 years?

62.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESI has high quality earnings.

Growing Profit Margin: ESI's current net profit margins (9.9%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: ESI has become profitable over the past 5 years, growing earnings by 62.9% per year.

Accelerating Growth: ESI's earnings growth over the past year (87.5%) exceeds its 5-year average (62.9% per year).

Earnings vs Industry: ESI earnings growth over the past year (87.5%) exceeded the Chemicals industry 17.5%.


Return on Equity

High ROE: ESI's Return on Equity (9%) is considered low.


Financial Health

How is Element Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: ESI's short term assets ($1.2B) exceed its short term liabilities ($421.3M).

Long Term Liabilities: ESI's short term assets ($1.2B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: ESI's net debt to equity ratio (66.3%) is considered high.

Reducing Debt: ESI's debt to equity ratio has reduced from 149.9% to 77.4% over the past 5 years.

Debt Coverage: ESI's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: ESI's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Dividend

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

1.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESI's dividend (1.4%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: ESI's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (3.61%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ESI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ESI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.9%), ESI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ESI's dividends in 3 years are forecast to be thoroughly covered by earnings (11.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Ben Gliklich (36 yo)

3yrs

Tenure

US$2,868,893

Compensation

Mr. Benjamin H. Gliklich, also known as Ben, has been President at Element Solutions Inc. since July 2020 and its Chief Executive Officer and Director at Element Solutions Inc. since January 31, 2019. Mr....


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD2.87M) is below average for companies of similar size in the US market ($USD6.48M).

Compensation vs Earnings: Ben's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ESI's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ESI's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Element Solutions Inc
  • Ticker: ESI
  • Exchange: NYSE
  • Founded: 1785
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Implied Market Cap: US$5.675b
  • Shares outstanding: 247.50m
  • Website: https://www.elementsolutionsinc.com

Number of Employees


Location

  • Element Solutions Inc
  • 500 East Broward Boulevard
  • Suite 1860
  • Fort Lauderdale
  • Florida
  • 33394
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:12
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.