ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
NYSE:ESI • US28618M1062
34.03 USD
-0.65 (-1.87%)
Last: Mar 3, 2026, 12:59 PM
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.
1. Profitability
1.1 Basic Checks
- In the past year ESI was profitable.
- ESI had a positive operating cash flow in the past year.
- ESI had positive earnings in each of the past 5 years.
- In the past 5 years ESI always reported a positive cash flow from operatings.
1.2 Ratios
- ESI has a Return On Assets of 3.74%. This is in the better half of the industry: ESI outperforms 74.70% of its industry peers.
- With a decent Return On Equity value of 7.13%, ESI is doing good in the industry, outperforming 72.29% of the companies in the same industry.
- The Return On Invested Capital of ESI (5.73%) is better than 62.65% of its industry peers.
- ESI had an Average Return On Invested Capital over the past 3 years of 5.34%. This is in line with the industry average of 6.34%.
- The 3 year average ROIC (5.34%) for ESI is below the current ROIC(5.73%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 7.48%, ESI is doing good in the industry, outperforming 79.52% of the companies in the same industry.
- ESI's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 13.41%, ESI is doing good in the industry, outperforming 69.88% of the companies in the same industry.
- In the last couple of years the Operating Margin of ESI has remained more or less at the same level.
- ESI's Gross Margin of 41.96% is amongst the best of the industry. ESI outperforms 87.95% of its industry peers.
- In the last couple of years the Gross Margin of ESI has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESI is destroying value.
- Compared to 1 year ago, ESI has more shares outstanding
- Compared to 5 years ago, ESI has less shares outstanding
- Compared to 1 year ago, ESI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.82 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.82, ESI is doing good in the industry, outperforming 79.52% of the companies in the same industry.
- The Debt to FCF ratio of ESI is 7.14, which is on the high side as it means it would take ESI, 7.14 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 7.14, ESI is doing good in the industry, outperforming 69.88% of the companies in the same industry.
- ESI has a Debt/Equity ratio of 0.61. This is a neutral value indicating ESI is somewhat dependend on debt financing.
- ESI has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.43
WACC13.45%
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.
- With an excellent Current ratio value of 3.68, ESI belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
- ESI has a Quick Ratio of 3.00. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
- ESI has a better Quick ratio (3.00) than 91.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
- ESI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.47%.
- 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.
- The Revenue has been growing slightly by 3.84% in the past year.
- The Revenue has been growing slightly by 6.60% on average over the past years.
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
- Based on estimates for the next years, ESI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.77% on average per year.
- ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.79% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.84 indicates a rather expensive valuation of ESI.
- ESI's Price/Earnings ratio is in line with the industry average.
- ESI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.70, ESI is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as ESI.
- When comparing the Price/Forward Earnings ratio of ESI to the average of the S&P500 Index (28.11), we can say ESI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESI is valued a bit more expensive than the industry average as 71.08% of the companies are valued more cheaply.
- ESI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.18 | ||
| EV/EBITDA | 19.04 |
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)2.49
EPS Next 2Y14.44%
EPS Next 3Y11.77%
5. Dividend
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 Rank | Sector 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
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%
NYSE:ESI (3/3/2026, 12:59:10 PM)
34.03
-0.65 (-1.87%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-17 2026-02-17/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners101.19%
Inst Owner Change-2.09%
Ins Owners7.63%
Ins Owner Change10.68%
Market Cap8.24B
Revenue(TTM)2.55B
Net Income(TTM)190.80M
Analysts81.25
Price Target38.32 (12.61%)
Short Float %5.02%
Short Ratio4.48
Dividend
| Industry Rank | Sector 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 2026-03-02 (0.08)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.7 | ||
| P/S | 3.23 | ||
| P/FCF | 36.18 | ||
| P/OCF | 28.42 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.04 |
EPS(TTM)1.49
EY4.38%
EPS(NY)1.73
Fwd EY5.08%
FCF(TTM)0.94
FCFY2.76%
OCF(TTM)1.2
OCFY3.52%
SpS10.54
BVpS11.05
TBVpS-0.93
PEG (NY)1.43
PEG (5Y)2.49
Graham Number19.25
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.82 |
F-Score6
WACC13.45%
ROIC/WACC0.43
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.