Element Solutions Inc (ESI)
NYSE:ESI
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Element Solutions
(NYSE:ESI)
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Rating:68Neutral
Price Target:
$42.00
▲(7.64% Upside)
Action:ReiteratedDate:04/29/26
The score is driven by improving operating momentum and a positive earnings update (raised EBITDA/EPS outlook) alongside strong technical trend support. These are tempered by weaker recent free cash flow/cash conversion and a relatively expensive valuation (high P/E with a low yield), plus near-term leverage and metal/working-capital volatility risks.
Positive Factors
Electronics-driven revenue growth
Strong, broad-based electronics end-market demand (AI/datacenter, semiconductor packaging, high‑layer server boards, smartphones) supports durable volume growth. Because ESI sells consumable process chemistries used continuously in manufacturing, this secular electronics exposure drives repeatable revenue and long-term customer adoption.
Negative Factors
Weakened cash generation
Material decline in cash conversion and ~47% fall in free cash flow reduces financial flexibility for deleveraging, organic investment, or shareholder returns. If working capital and metal-price impacts persist, constrained cash flow can slow balance‑sheet repair and limit ability to fund growth without additional leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Electronics-driven revenue growth
Strong, broad-based electronics end-market demand (AI/datacenter, semiconductor packaging, high‑layer server boards, smartphones) supports durable volume growth. Because ESI sells consumable process chemistries used continuously in manufacturing, this secular electronics exposure drives repeatable revenue and long-term customer adoption.
Read all positive factors
Element Solutions (ESI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.83B
Dividend Yield1.25%
Average Volume (3M)2.76M
Price to Earnings (P/E)37.1
Beta (1Y)1.27
Revenue Growth3.84%
EPS Growth-21.89%
CountryUS
Employees5,300
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.41
Shares Outstanding243,595,400
10 Day Avg. Volume2,684,144
30 Day Avg. Volume2,760,231
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)2.26
Price to Sales (P/S)2.37
P/FCF Ratio26.57
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue3.73
Enterprise Value/Gross Profit9.14
Enterprise Value/Ebitda23.21
Forecast
1Y Price Target
$43.33Price Target Upside11.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.75
Revenue Forecast (FY)$3.06B
Element Solutions Business Overview & Revenue Model
Company Description
Element Solutions Inc operates as a specialty chemicals company in the United States, China, and internationally. The company operates in two segments, Electronics, and Industrial & Specialty. The Electronics segment researches, formulates, and se...
How the Company Makes Money
ESI makes money by selling specialty chemical formulations and process solutions that customers consume as part of ongoing manufacturing operations. Revenue is largely generated through (1) Electronics: sales of PCB and electronics-interconnect pr...
Element Solutions Key Performance Indicators (KPIs)
Element Solutions Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
Overall the call was positive: the company reported a record quarter with strong double-digit organic growth in Electronics, broad-based margin expansion, and raised full-year adjusted EBITDA and EPS guidance. Management emphasized customer-driven investments (CapEx/OpEx), successful acquisitions and commercial momentum (Kuprion progress). However, near-term headwinds remain — Q1 free cash flow was negative due to working capital and metal price effects, Industrial Solutions showed weakness, metal price volatility creates earnings lumpiness, and geopolitical/inflationary risks could affect demand and margins. On balance, growth and guidance upgrades outweigh the transitory and operational risks.Positive Updates
Record Quarter and Organic Sales Growth
Company reported a record quarter with organic net sales growth of 10% year-over-year and delivered double-digit organic sales growth in Electronics for the second consecutive quarter.
Negative Updates
Negative Free Cash Flow and Working Capital Increase
Free cash flow was negative in Q1 as working capital increased with growth and higher metal prices; Q1 is seasonally the weakest cash quarter and management expects stronger cash generation in later quarters assuming metal price stability.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarter and Organic Sales Growth
Company reported a record quarter with organic net sales growth of 10% year-over-year and delivered double-digit organic sales growth in Electronics for the second consecutive quarter.
Read all positive updates
Company Guidance
Element raised full-year adjusted EBITDA guidance to $665–$685 million (Q2 adjusted EBITDA $155–$170 million) and now expects 2026 adjusted EPS growth in the high‑teens, reflecting Q1 strength; Q1 organic net sales were +10% (Electronics +15%, Semiconductor +18%, Circuitry +17%, Assembly +12%, Specialties +1%, Industrial ~0%), adjusted EBITDA margin (ex pass‑through metals) improved 170 bps to 27.8% with pass‑through metals revenue of $256M in Q1 (vs. $101M in Q4); Micromax contributed ~$65M of sales (2 months) and would have resulted in $170M adjusted EBITDA if owned the full quarter, EFC added $19M, and Q1 CapEx was $25M as the company now expects FY CapEx of $75–$100M (<3% of sales); free cash flow was negative in Q1 due to working capital and higher metal prices, net leverage was 3.4x (3.1x pro forma) with an expected reduction of ~0.5x by year‑end, assuming no further deployments and metals stabilize, while management flags risks from metal price and logistics inflation (tens of millions) and a less favorable FX tailwind.Element Solutions Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
63
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.80B | 2.55B | 2.46B | 2.33B | 2.55B | 2.40B |
| Gross Profit | 1.14B | 1.07B | 1.04B | 918.50M | 952.70M | 960.80M |
| EBITDA | 450.20M | 493.40M | 501.60M | 345.10M | 496.10M | 475.50M |
| Net Income | 148.70M | 190.80M | 244.20M | 118.10M | 187.20M | 203.30M |
Balance Sheet | ||||||
| Total Assets | 5.74B | 5.10B | 4.87B | 4.97B | 4.90B | 5.14B |
| Cash, Cash Equivalents and Short-Term Investments | 177.30M | 626.50M | 359.40M | 289.30M | 265.60M | 330.10M |
| Total Debt | 2.16B | 1.63B | 1.91B | 2.03B | 1.98B | 1.97B |
| Total Liabilities | 2.99B | 2.41B | 2.48B | 2.63B | 2.55B | 2.64B |
| Stockholders Equity | 2.73B | 2.67B | 2.38B | 2.33B | 2.33B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 120.90M | 227.60M | 293.60M | 283.10M | 249.90M | 276.20M |
| Operating Cash Flow | 197.20M | 289.80M | 362.00M | 335.80M | 297.70M | 322.50M |
| Investing Cash Flow | -940.80M | 286.10M | -73.80M | -250.20M | -75.20M | -568.90M |
| Financing Cash Flow | 414.70M | -320.40M | -206.60M | -58.70M | -275.60M | 290.00M |
Element Solutions Technical Analysis
Positive
39.02
Price Trends
33.82
Positive
30.43
Positive
27.82
Positive
Market Momentum
1.49
Negative
68.13
Neutral
82.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESI, the sentiment is Positive. The current price of 39.02 is above the 20-day moving average (MA) of 35.30, above the 50-day MA of 33.82, and above the 200-day MA of 27.82, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 68.13 is Neutral, neither overbought nor oversold. The STOCH value of 82.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESI.
Element Solutions Risk Analysis
Element Solutions disclosed 33 risk factors in its most recent earnings report. Element Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Element Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.61B | 32.29 | 12.31% | 0.61% | 8.75% | 20.88% | |
68 Neutral | $9.83B | 37.13 | 7.29% | 1.25% | 3.84% | -21.89% | |
68 Neutral | $8.25B | 15.45 | 8.09% | 5.33% | -6.52% | -46.84% | |
67 Neutral | $5.30B | 20.69 | 9.91% | 1.70% | 5.80% | 12.24% | |
65 Neutral | $6.40B | 12.75 | 24.12% | 1.59% | -3.47% | -12.95% | |
65 Neutral | $6.28B | 18.46 | 16.86% | ― | -3.01% | -2.12% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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Element Solutions
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Element Solutions Corporate Events
Business Operations and StrategyExecutive/Board Changes
Element Solutions Announces Board Leadership Transition and Succession
Neutral
Mar 23, 2026
On March 23, 2026, Element Solutions Inc announced that Executive Chairman Sir Martin E. Franklin will retire from its Board and not seek re-election at the 2026 annual meeting, with his term ending by May 4, 2026. Following his departure, the Boa...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Element Solutions Amends Credit Facility to Fund Micromax Acquisition
Positive
Feb 2, 2026
On February 2, 2026, Element Solutions Inc and its subsidiary MacDermid, Incorporated, amended their existing credit agreement to add $450 million of new U.S. dollar term loans fungible with the company’s existing term loan B and to replace ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.