ELEMENT SOLUTIONS INC (ESI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ESI • US28618M1062
28.9 USD
-0.91 (-3.05%)
Last: Jan 30, 2026, 01:37 PM
ESI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. ESI has an excellent profitability rating, but there are some minor concerns on its financial health. ESI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- ESI had positive earnings in the past year.
- ESI had a positive operating cash flow in the past year.
- ESI had positive earnings in each of the past 5 years.
- Each year in the past 5 years ESI had a positive operating cash flow.
1.2 Ratios
- ESI has a better Return On Assets (4.75%) than 79.52% of its industry peers.
- With a decent Return On Equity value of 9.02%, ESI is doing good in the industry, outperforming 77.11% of the companies in the same industry.
- ESI has a better Return On Invested Capital (6.49%) than 71.08% of its industry peers.
- ESI had an Average Return On Invested Capital over the past 3 years of 5.90%. This is in line with the industry average of 6.11%.
- The 3 year average ROIC (5.90%) for ESI is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 9.02% | ||
| ROIC | 6.49% |
ROA(3y)3.73%
ROA(5y)3.37%
ROE(3y)7.78%
ROE(5y)6.96%
ROIC(3y)5.9%
ROIC(5y)5.62%
1.3 Margins
- ESI's Profit Margin of 9.58% is amongst the best of the industry. ESI outperforms 85.54% of its industry peers.
- ESI's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 13.90%, ESI is doing good in the industry, outperforming 72.29% 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 has a Gross Margin of 42.01%. This is amongst the best in the industry. ESI outperforms 86.75% 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 | 13.9% | ||
| PM (TTM) | 9.58% | ||
| GM | 42.01% |
OM growth 3Y3.85%
OM growth 5Y0.62%
PM growth 3Y5.47%
PM growth 5Y14.63%
GM growth 3Y1.73%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
- ESI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
- An Altman-Z score of 2.56 indicates that ESI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ESI's Altman-Z score of 2.56 is fine compared to the rest of the industry. ESI outperforms 72.29% of its industry peers.
- The Debt to FCF ratio of ESI is 6.02, which is on the high side as it means it would take ESI, 6.02 years of fcf income to pay off all of its debts.
- ESI has a better Debt to FCF ratio (6.02) than 74.70% 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 has a Debt to Equity ratio of 0.61. This is comparable to the rest of the industry: ESI outperforms 55.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.49
WACC13.21%
2.3 Liquidity
- A Current Ratio of 4.05 indicates that ESI has no problem at all paying its short term obligations.
- The Current ratio of ESI (4.05) is better than 90.36% of its industry peers.
- ESI has a Quick Ratio of 3.28. This indicates that ESI is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 3.28, ESI belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
- ESI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.26%.
- Measured over the past years, ESI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.10% on average per year.
- Looking at the last year, ESI shows a small growth in Revenue. The Revenue has grown by 3.87% in the last year.
- The Revenue has been growing slightly by 6.00% on average over the past years.
EPS 1Y (TTM)4.26%
EPS 3Y1.43%
EPS 5Y10.1%
EPS Q2Q%5.13%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y0.79%
Revenue growth 5Y6%
Sales Q2Q%1.72%
3.2 Future
- The Earnings Per Share is expected to grow by 9.64% on average over the next years. This is quite good.
- ESI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y3.96%
EPS Next 2Y9.34%
EPS Next 3Y10.51%
EPS Next 5Y9.64%
Revenue Next Year3.01%
Revenue Next 2Y7.27%
Revenue Next 3Y6.91%
Revenue Next 5Y6.57%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- Based on the Price/Earnings ratio of 19.66, the valuation of ESI can be described as rather expensive.
- ESI's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, ESI is valued a bit cheaper.
- A Price/Forward Earnings ratio of 16.79 indicates a correct valuation of ESI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESI indicates a somewhat cheap valuation: ESI is cheaper than 60.24% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. ESI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 16.79 |
4.2 Price Multiples
- 66.27% of the companies in the same industry are cheaper than ESI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ESI is valued a bit cheaper than 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.91 | ||
| EV/EBITDA | 16.52 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESI does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of ESI may justify a higher PE ratio.
PEG (NY)4.96
PEG (5Y)1.95
EPS Next 2Y9.34%
EPS Next 3Y10.51%
5. Dividend
5.1 Amount
- ESI has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
- ESI's Dividend Yield is comparable with the industry average which is at 2.23.
- ESI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
- 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)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- ESI pays out 32.50% of its income as dividend. This is a sustainable payout ratio.
DP32.5%
EPS Next 2Y9.34%
EPS Next 3Y10.51%
ELEMENT SOLUTIONS INC / ESI FAQ
Can you provide the ChartMill fundamental rating for ELEMENT SOLUTIONS INC?
ChartMill assigns a fundamental rating of 6 / 10 to ESI.
What is the valuation status for ESI stock?
ChartMill assigns a valuation rating of 4 / 10 to ELEMENT SOLUTIONS INC (ESI). This can be considered as Fairly Valued.
Can you provide the profitability details for ELEMENT SOLUTIONS INC?
ELEMENT SOLUTIONS INC (ESI) has a profitability rating of 8 / 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 3.96% in the next year.