ELEMENT SOLUTIONS INC (ESI) Fundamental Analysis & Valuation

NYSE:ESI • US28618M1062

34.01 USD
+0.08 (+0.24%)
Last: Mar 5, 2026, 10:44 AM
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This ESI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ESI. ESI was compared to 83 industry peers in the Chemicals industry. ESI scores excellent on profitability, but there are some minor concerns on its financial health. ESI is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. ESI Profitability Analysis

1.1 Basic Checks

  • In the past year ESI was profitable.
  • ESI had a positive operating cash flow in the past year.
  • Each year in the past 5 years ESI has been profitable.
  • ESI had a positive operating cash flow in each of the past 5 years.
ESI Yearly Net Income VS EBIT VS OCF VS FCFESI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M

1.2 Ratios

  • ESI's Return On Assets of 3.74% is fine compared to the rest of the industry. ESI outperforms 74.70% of its industry peers.
  • ESI's Return On Equity of 7.13% is fine compared to the rest of the industry. ESI outperforms 71.08% of its industry peers.
  • ESI's Return On Invested Capital of 5.73% is fine compared to the rest of the industry. ESI outperforms 62.65% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ESI is in line with the industry average of 6.36%.
  • The last Return On Invested Capital (5.73%) for ESI is above the 3 year average (5.34%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.74%
ROE 7.13%
ROIC 5.73%
ROA(3y)3.71%
ROA(5y)3.78%
ROE(3y)7.48%
ROE(5y)7.73%
ROIC(3y)5.34%
ROIC(5y)5.31%
ESI Yearly ROA, ROE, ROICESI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 -10 -15

1.3 Margins

  • ESI has a Profit Margin of 7.48%. This is in the better half of the industry: ESI outperforms 79.52% of its industry peers.
  • In the last couple of years the Profit Margin of ESI has grown nicely.
  • Looking at the Operating Margin, with a value of 13.41%, ESI is in the better half of the industry, outperforming 69.88% of the companies in the same industry.
  • ESI's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 41.96%, ESI belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ESI has remained more or less at the same level.
Industry RankSector Rank
OM 13.41%
PM (TTM) 7.48%
GM 41.96%
OM growth 3Y1.68%
OM growth 5Y1.33%
PM growth 3Y0.61%
PM growth 5Y12.86%
GM growth 3Y3.94%
GM growth 5Y-0.21%
ESI Yearly Profit, Operating, Gross MarginsESI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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6

2. ESI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESI is destroying value.
  • The number of shares outstanding for ESI has been increased compared to 1 year ago.
  • ESI has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ESI has an improved debt to assets ratio.
ESI Yearly Shares OutstandingESI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
ESI Yearly Total Debt VS Total AssetsESI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • ESI has an Altman-Z score of 2.77. This is not the best score and indicates that ESI is in the grey zone with still only limited risk for bankruptcy at the moment.
  • ESI has a Altman-Z score of 2.77. This is in the better half of the industry: ESI outperforms 77.11% of its industry peers.
  • ESI has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as ESI would need 7.14 years to pay back of all of its debts.
  • ESI's Debt to FCF ratio of 7.14 is fine compared to the rest of the industry. ESI outperforms 69.88% of its industry peers.
  • ESI has a Debt/Equity ratio of 0.61. This is a neutral value indicating ESI is somewhat dependend on debt financing.
  • ESI's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. ESI outperforms 57.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 7.14
Altman-Z 2.77
ROIC/WACC0.42
WACC13.48%
ESI Yearly LT Debt VS Equity VS FCFESI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • ESI has a Current Ratio of 3.68. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 3.68, ESI belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
  • A Quick Ratio of 3.00 indicates that ESI has no problem at all paying its short term obligations.
  • ESI's Quick ratio of 3.00 is amongst the best of the industry. ESI outperforms 91.57% of its industry peers.
Industry RankSector Rank
Current Ratio 3.68
Quick Ratio 3
ESI Yearly Current Assets VS Current LiabilitesESI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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5

3. ESI Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.47% over the past year.
  • Measured over the past years, ESI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
  • Looking at the last year, ESI shows a small growth in Revenue. The Revenue has grown by 3.84% in the last year.
  • ESI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.60% yearly.
EPS 1Y (TTM)3.47%
EPS 3Y1.86%
EPS 5Y9.19%
EPS Q2Q%5.71%
Revenue 1Y (TTM)3.84%
Revenue growth 3Y0.02%
Revenue growth 5Y6.6%
Sales Q2Q%8.33%

3.2 Future

  • ESI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.77% yearly.
  • The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y15.96%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue Next Year12.1%
Revenue Next 2Y9.2%
Revenue Next 3Y7.79%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
ESI Yearly Revenue VS EstimatesESI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
ESI Yearly EPS VS EstimatesESI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

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3

4. ESI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 22.83, the valuation of ESI can be described as rather expensive.
  • The rest of the industry has a similar Price/Earnings ratio as ESI.
  • When comparing the Price/Earnings ratio of ESI to the average of the S&P500 Index (27.03), we can say ESI is valued inline with the index average.
  • ESI is valuated rather expensively with a Price/Forward Earnings ratio of 19.68.
  • ESI's Price/Forward Earnings ratio is in line with the industry average.
  • ESI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 22.83
Fwd PE 19.68
ESI Price Earnings VS Forward Price EarningsESI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than the industry average as 68.67% of the companies are valued more cheaply.
  • ESI's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 36.16
EV/EBITDA 18.67
ESI Per share dataESI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • ESI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ESI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)2.48
EPS Next 2Y14.44%
EPS Next 3Y11.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. ESI Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.90%, ESI is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.19, ESI has a dividend in line with its industry peers.
  • With a Dividend Yield of 0.90, ESI pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.9%

5.2 History

  • On average, the dividend of ESI grows each year by 45.10%, which is quite nice.
  • ESI has been paying a dividend for over 5 years, so it has already some track record.
  • ESI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)45.1%
Div Incr Years0
Div Non Decr Years4
ESI Yearly Dividends per shareESI Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3

5.3 Sustainability

  • 40.78% of the earnings are spent on dividend by ESI. This is a bit on the high side, but may be sustainable.
  • ESI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.78%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
ESI Yearly Income VS Free CF VS DividendESI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M
ESI Dividend Payout.ESI Dividend Payout, showing the Payout Ratio.ESI Dividend Payout.PayoutRetained Earnings

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ESI Fundamentals: All Metrics, Ratios and Statistics

ELEMENT SOLUTIONS INC

NYSE:ESI (3/5/2026, 10:44:54 AM)

34.01

+0.08 (+0.24%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-17
Earnings (Next)04-21
Inst Owners101.19%
Inst Owner Change-2.09%
Ins Owners7.63%
Ins Owner Change10.68%
Market Cap8.23B
Revenue(TTM)2.55B
Net Income(TTM)190.80M
Analysts81.25
Price Target38.32 (12.67%)
Short Float %5.02%
Short Ratio4.48
Dividend
Industry RankSector Rank
Dividend Yield 0.9%
Yearly Dividend0.32
Dividend Growth(5Y)45.1%
DP40.78%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.08%
Min EPS beat(2)1.63%
Max EPS beat(2)2.53%
EPS beat(4)4
Avg EPS beat(4)2.6%
Min EPS beat(4)1.63%
Max EPS beat(4)3.29%
EPS beat(8)7
Avg EPS beat(8)2.46%
EPS beat(12)9
Avg EPS beat(12)2.06%
EPS beat(16)12
Avg EPS beat(16)2.32%
Revenue beat(2)2
Avg Revenue beat(2)3.18%
Min Revenue beat(2)0.43%
Max Revenue beat(2)5.94%
Revenue beat(4)4
Avg Revenue beat(4)2.92%
Min Revenue beat(4)0.43%
Max Revenue beat(4)5.94%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)18.38%
PT rev (3m)18.53%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0.36%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)7.76%
Revenue NQ rev (3m)9.62%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)3.96%
Valuation
Industry RankSector Rank
PE 22.83
Fwd PE 19.68
P/S 3.23
P/FCF 36.16
P/OCF 28.4
P/B 3.08
P/tB N/A
EV/EBITDA 18.67
EPS(TTM)1.49
EY4.38%
EPS(NY)1.73
Fwd EY5.08%
FCF(TTM)0.94
FCFY2.77%
OCF(TTM)1.2
OCFY3.52%
SpS10.54
BVpS11.05
TBVpS-0.93
PEG (NY)1.43
PEG (5Y)2.48
Graham Number19.25
Profitability
Industry RankSector Rank
ROA 3.74%
ROE 7.13%
ROCE 7.33%
ROIC 5.73%
ROICexc 6.61%
ROICexgc 23.34%
OM 13.41%
PM (TTM) 7.48%
GM 41.96%
FCFM 8.92%
ROA(3y)3.71%
ROA(5y)3.78%
ROE(3y)7.48%
ROE(5y)7.73%
ROIC(3y)5.34%
ROIC(5y)5.31%
ROICexc(3y)5.9%
ROICexc(5y)5.79%
ROICexgc(3y)20.84%
ROICexgc(5y)22.39%
ROCE(3y)6.83%
ROCE(5y)6.79%
ROICexgc growth 3Y-0.44%
ROICexgc growth 5Y-0.29%
ROICexc growth 3Y3.75%
ROICexc growth 5Y7.11%
OM growth 3Y1.68%
OM growth 5Y1.33%
PM growth 3Y0.61%
PM growth 5Y12.86%
GM growth 3Y3.94%
GM growth 5Y-0.21%
F-Score6
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 7.14
Debt/EBITDA 3.3
Cap/Depr 41.14%
Cap/Sales 2.44%
Interest Coverage 4.99
Cash Conversion 58.74%
Profit Quality 119.29%
Current Ratio 3.68
Quick Ratio 3
Altman-Z 2.77
F-Score6
WACC13.48%
ROIC/WACC0.42
Cap/Depr(3y)38.72%
Cap/Depr(5y)34.81%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.26%
Profit Quality(3y)159.96%
Profit Quality(5y)149.85%
High Growth Momentum
Growth
EPS 1Y (TTM)3.47%
EPS 3Y1.86%
EPS 5Y9.19%
EPS Q2Q%5.71%
EPS Next Y15.96%
EPS Next 2Y14.44%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y0.02%
Revenue growth 5Y6.6%
Sales Q2Q%8.33%
Revenue Next Year12.1%
Revenue Next 2Y9.2%
Revenue Next 3Y7.79%
Revenue Next 5YN/A
EBIT growth 1Y-0.49%
EBIT growth 3Y1.7%
EBIT growth 5Y8.02%
EBIT Next Year44.53%
EBIT Next 3Y20.25%
EBIT Next 5YN/A
FCF growth 1Y-22.9%
FCF growth 3Y-3.07%
FCF growth 5Y-0.43%
OCF growth 1Y-20.3%
OCF growth 3Y-0.89%
OCF growth 5Y2.09%

ELEMENT SOLUTIONS INC / ESI FAQ

Can you provide the ChartMill fundamental rating for ELEMENT SOLUTIONS INC?

ChartMill assigns a fundamental rating of 5 / 10 to ESI.


What is the valuation status for ESI stock?

ChartMill assigns a valuation rating of 3 / 10 to ELEMENT SOLUTIONS INC (ESI). This can be considered as Overvalued.


Can you provide the profitability details for ELEMENT SOLUTIONS INC?

ELEMENT SOLUTIONS INC (ESI) has a profitability rating of 7 / 10.


Can you provide the financial health for ESI stock?

The financial health rating of ELEMENT SOLUTIONS INC (ESI) is 6 / 10.


What is the earnings growth outlook for ELEMENT SOLUTIONS INC?

The Earnings per Share (EPS) of ELEMENT SOLUTIONS INC (ESI) is expected to grow by 15.96% in the next year.