NYSE:ESI

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Executive Summary

Element Solutions Inc produces and sells specialty chemical products the United States, China, and internationally. More Details


Snowflake Analysis

Undervalued with moderate growth potential.


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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 less volatile than 75% 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.


Market Performance


7 Day Return

7.2%

ESI

3.3%

US Chemicals

2.8%

US Market


1 Year Return

18.1%

ESI

15.1%

US Chemicals

19.7%

US Market

Return vs Industry: ESI exceeded the US Chemicals industry which returned 15.1% over the past year.

Return vs Market: ESI underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

ESIIndustryMarket
7 Day7.2%3.3%2.8%
30 Day14.0%11.8%8.0%
90 Day27.7%12.2%6.8%
1 Year18.6%18.1%17.7%15.1%22.4%19.7%
3 Year42.2%41.7%22.8%0.09%47.3%37.5%
5 Year7.3%6.9%76.8%35.6%93.6%72.3%

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

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 ($13.94) is trading below our estimate of fair value ($112.97)

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


Price To Earnings Ratio

PE vs Industry: ESI is good value based on its PE Ratio (28.7x) compared to the US Chemicals industry average (29.8x).

PE vs Market: ESI is poor value based on its PE Ratio (28.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: ESI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ESI is good value based on its PB Ratio (1.5x) compared to the US Chemicals industry average (2.3x).


Next Steps

Future Growth

How is Element Solutions forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESI's forecast earnings growth (31% per year) is above the savings rate (2.2%).

Earnings vs Market: ESI's earnings (31% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: ESI's revenue (4.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ESI's revenue (4.6% 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 (11%).


Next Steps

Past Performance

How has Element Solutions performed over the past 5 years?

59.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESI has a large one-off loss of $42.1M impacting its September 30 2020 financial results.

Growing Profit Margin: ESI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ESI has become profitable over the past 5 years, growing earnings by 59% per year.

Accelerating Growth: ESI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ESI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-16.3%).


Return on Equity

High ROE: ESI's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Element Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: ESI's short term assets ($946.6M) exceed its short term liabilities ($302.4M).

Long Term Liabilities: ESI's short term assets ($946.6M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: ESI's debt to equity ratio (67.3%) is considered high.

Reducing Debt: ESI's debt to equity ratio has reduced from 120.6% to 67.3% over the past 5 years.

Debt Coverage: ESI's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: ESI's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESI's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: ESI's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ESI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Ben Gliklich (35 yo)

1.83yrs

Tenure

US$3,331,975

Compensation

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 ($USD3.33M) is below average for companies of similar size in the US market ($USD5.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Ellis Franklin
Founder & Executive Chairman7.08yrsUS$2.92m5.12%
$ 180.8m
Benjamin Gliklich
CEO, President & Director1.83yrsUS$3.33m0.054%
$ 1.9m
Carey Dorman
Chief Financial Officer1.67yrsUS$1.15m0.0081%
$ 287.4k
John Capps
Executive VP4.5yrsUS$2.23m0.13%
$ 4.6m
Patricia Mount
Vice President - Program Management and Integration1.67yrsUS$573.73k0.013%
$ 469.2k
Michael Russnok
Chief Accounting Officer1.67yrsno datano data
Yash Nehete
Senior Associate of Corporate Development & IRno datano datano data
Steve Racca
VP of Offshore Solutionsno datano datano data
Tom Hunsinger
Vice President of Assembly Solutionsno datano datano data
Joe D'Ambrisi
Vice President of Electronicsno datano datano data
Leo Linehan
Vice President of Semiconductor Solutionsno datano datano data
Melanie Galloway
Senior Vice President of MacDermid Graphics Solutionsno datano datano data

1.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: ESI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Martin Ellis Franklin
Founder & Executive Chairman7.08yrsUS$2.92m5.12%
$ 180.8m
Benjamin Gliklich
CEO, President & Director1.83yrsUS$3.33m0.054%
$ 1.9m
Michael Goss
Independent Lead Director0.75yrUS$189.59k0.096%
$ 3.4m
Ernest O'Neal
Independent Director7.08yrsUS$190.01k0.13%
$ 4.5m
Ian G. Ashken
Independent Director7.08yrsUS$195.01k0.78%
$ 27.5m
Christopher Fraser
Independent Director1.58yrsUS$150.01k0.011%
$ 395.4k
Scot Benson
Director1.58yrsUS$2.36m0.12%
$ 4.1m
Nichelle Maynard-Elliott
Independent Director2.25yrsUS$184.17k0.0075%
$ 263.0k

2.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ESI's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: ESI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Element Solutions Inc
  • Ticker: ESI
  • Exchange: NYSE
  • Founded: 1922
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$3.530b
  • Shares outstanding: 247.21m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESINYSE (New York Stock Exchange)YesOrdinary SharesUSUSDJan 2014
PLQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2014

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 23:38
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.