Element Solutions Inc produces and sells specialty chemical products the United States, China, and internationally. More Details
Fair value with moderate growth potential.
Share Price & News
How has Element Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
7 Day Return
1 Year Return
Return vs Industry: ESI exceeded the US Chemicals industry which returned 76.4% over the past year.
Return vs Market: ESI exceeded the US Market which returned 57.5% over the past year.
Long-Term 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
1 week ago | Simply Wall StNeed To Know: Element Solutions Inc (NYSE:ESI) Insiders Have Been Buying Shares
4 weeks ago | Simply Wall StHow Does Element Solutions Inc (NYSE:ESI) Stand Up To These Simple Dividend Safety Checks?
1 month ago | Simply Wall StAt US$18.02, Is Element Solutions Inc (NYSE:ESI) Worth Looking At Closely?
Is Element Solutions undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ESI ($19.68) is trading below our estimate of fair value ($158.59)
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 (63.8x) compared to the US Chemicals industry average (27.7x).
PE vs Market: ESI is poor value based on its PE Ratio (63.8x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: ESI is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: ESI is good value based on its PB Ratio (2.1x) compared to the US Chemicals industry average (2.7x).
How is Element Solutions forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESI's forecast earnings growth (46.9% per year) is above the savings rate (2%).
Earnings vs Market: ESI's earnings (46.9% per year) are forecast to grow faster than the US market (18.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ESI's revenue (5.2% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: ESI's revenue (5.2% 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 (12.9%).
How has Element Solutions performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ESI has a large one-off loss of $52.0M impacting its December 31 2020 financial results.
Growing Profit Margin: ESI's current net profit margins (4.1%) are lower than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: ESI has become profitable over the past 5 years, growing earnings by 60.1% per year.
Accelerating Growth: ESI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ESI had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Chemicals industry average (3.3%).
Return on Equity
High ROE: ESI's Return on Equity (3.3%) is considered low.
How is Element Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: ESI's short term assets ($989.9M) exceed its short term liabilities ($314.3M).
Long Term Liabilities: ESI's short term assets ($989.9M) do not cover its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: ESI's debt to equity ratio (67.6%) is considered high.
Reducing Debt: ESI's debt to equity ratio has reduced from 181.7% to 67.6% over the past 5 years.
Debt Coverage: ESI's debt is not well covered by operating cash flow (16.7%).
Interest Coverage: ESI's interest payments on its debt are well covered by EBIT (3.8x coverage).
What is Element Solutions's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ESI's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: ESI's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether ESI's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if ESI's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (16.2%), ESI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ESI's dividends in 3 years are forecast to be thoroughly covered by earnings (9.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ben Gliklich (35 yo)
Mr. Benjamin H. Gliklich, also known as Ben, serves as President at Element Solutions Inc. since July 2020. Mr. Gliklich is Chief Executive Officer and Director at Element Solutions Inc. since January 31, ...
CEO Compensation Analysis
Compensation vs Market: Ben's total compensation ($USD3.33M) is below average for companies of similar size in the US market ($USD6.51M).
Compensation vs Earnings: Ben's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: ESI's management team is considered experienced (2.1 years average tenure).
Experienced Board: ESI's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Element Solutions Inc's company bio, employee growth, exchange listings and data sources
- Name: Element Solutions Inc
- Ticker: ESI
- Exchange: NYSE
- Founded: 1922
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$4.826b
- Shares outstanding: 247.10m
- Website: https://www.elementsolutionsinc.com
Number of Employees
- Element Solutions Inc
- 500 East Broward Boulevard
- Suite 1860
- Fort Lauderdale
- United States
Element Solutions Inc produces and sells specialty chemical products the United States, China, and internationally. The company operates in two segments, Electronics and Industrial & Specialty. The Electro...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:32|
|End of Day Share Price||2021/04/16 00:00|
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.