NYSE
ESI
Last Price
US $40.65
KEY FIGURES
MKT CAP
$9.9B
EPS
TTM
$0.61
PEG
TTM
N/M
P/E
TTM
66.49x
P/S
TTM
3.53x
YIELD
0.79%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
5.56%
Return on equity
ROIC: 7.11%
Valuation History
64.7X
Price to Earnings
EV/EBITDA: 34.8X
Cash flow
Profit margin
6.60%
(FY vs FY)
EBITDA Y/Y
0.96%
(FY vs FY)
Cash flow Y/Y
-0.43%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $40.65
-83.67%
Default assumptions
EBITDA Multiple
Fair Value
Market $40.65
-75.20%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Element Solutions Inc cash flow to debt ratio of 17.64% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Element Solutions Inc's free cash flow has decreased -22.48% from $293.60M last year to $227.60M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Element Solutions Inc's debt to equity ratio is 0.79, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Element Solutions Inc's debt has decreased relative to shareholder equity from 0.80 last year to 0.79 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Element Solutions Inc has a net debt to EBITDA ratio of 3.17x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Element Solutions Inc's interest coverage ratio of 6.21 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Element Solutions Inc's profit margin has decreased (-46.52%) in the last year from 9.94% to 5.32%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Element Solutions Inc's short-term assets of $1.58G exceed its short-term liabilities of $429.90M
Decreasing performance - ROA.
Element Solutions Inc's return on assets of 2.59% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Element Solutions Inc's return on equity of 5.56%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Element Solutions Inc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Element Solutions Inc had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Element Solutions Inc has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Element Solutions Inc has a free cash flow yield of 2.30%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Element Solutions Inc's yearly earnings has decreased -21.87% since last year from $244.20M to $190.80M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Element Solutions Inc's yearly revenue has increased 3.84% since last year from $2.46G to $2.55G, signaling increasing performance
Increasing performance - ROIC.
ROIC 7.11% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Element Solutions Inc's 3-year revenue CAGR of 0.02% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Element Solutions Inc had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Element Solutions Inc had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Element Solutions Inc is overvalued relative to its fair value price of 6.64 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Element Solutions Inc has an earnings yield of 1.50%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Element Solutions Inc is overvalued relative to its fair value price of 10.08 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Element Solutions Inc has an EV/EBITDA ratio of 34.05x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Element Solutions Inc has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
Element Solutions Inc has a price-to-book ratio of 3.60x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Element Solutions Inc has a price-to-sales ratio of 3.53x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue