Element Solutions (ESI) AI Stock Analysis

• Market Cap: $5.10B
• Dividend Yield: 1.52%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 1.25
• Revenue Growth: 6.08%
• EPS Growth: 117.61%
• Country: US
• Employees: 5,300
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 0.34
• Shares Outstanding: 242,504,070
• 10 Day Avg. Volume: 1,520,845
• 30 Day Avg. Volume: 1,552,803
• PEG Ratio: -3.25
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.59
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 2.22
• 1Y Price Target: $26.75
• Price Target Upside: 27.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $24.50 ▲(16.61%Upside)

Element Solutions' strong financial performance and solid earnings call contribute positively to the overall score. The technical analysis indicates mixed signals, while the valuation remains reasonable. Corporate events further bolster confidence with positive shareholder engagement and analyst ratings. Continued focus on overcoming industry challenges and expanding growth could enhance future performance.

Positive Factors

Business Model

ESI's robust business model, rising exposure to high-growth semis markets, and solid balance sheet should help navigate an uncertain near/mid-term.

Earnings

ESI had a strong start to the year with earnings trending ahead of expectations.

Negative Factors

Outlook

The outlook remains uncertain, driving forecasts slightly lower.

Price Target

The price target was lowered from $28 to $24, reflecting a more conservative outlook due to uncertainties in trade policies.

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 sells specialty chemicals and materials for various types of electronics hardware products. This segment also supplies solder technologies, fluxes, cleaners, and other attachment materials for the electronics assembly industry; proprietary liquid chemical processes to manufacture printed circuit boards; and advanced copper interconnects, die attachment, wafer bump processes, and photomask technologies for integrated circuit fabrication and semiconductor packaging. It primarily serves mobile communications, computers, automobiles, and aerospace equipment industries. The Industrial & Specialty segment provides industrial solutions, which include chemical systems that protect and decorate metal and plastic surfaces; consumable chemicals that enable printing image transfer on flexible packaging materials; and chemistries used in water-based hydraulic control fluids for offshore energy production applications. It serves aerospace, automotive, construction, consumer electronics, consumer packaged goods, and oil and gas production end markets. The company was formerly known as Platform Specialty Products Corporation and changed its name to Element Solutions Inc in January 2019. Element Solutions Inc was founded in 1785 and is headquartered in Fort Lauderdale, Florida.

How the Company Makes Money

Element Solutions Inc makes money primarily through the sale of specialty chemicals and materials that are used in critical manufacturing processes across multiple industries. The company generates revenue by supplying these high-performance products to manufacturers of electronics, industrial equipment, and consumer goods. ESI's key revenue streams include the Electronics segment, which provides interconnect materials and assembly solutions to the electronics industry, and the Industrial & Specialty segment, which offers surface treatment chemicals for industrial applications. Additionally, the company benefits from strategic partnerships and collaborations with leading manufacturers, which enhance its market reach and contribute to its earnings.

Element Solutions Financial Statement Overview

Summary

Element Solutions exhibits strong financial health with solid profitability margins and a stable balance sheet. While revenue growth is modest, the company maintains efficiency in operations and cash flow generation. The balance sheet is well-structured with moderate leverage, and the company effectively converts earnings into cash.

Income Statement

Element Solutions shows a strong gross profit margin of 42.1% and a net profit margin of 11.6% for TTM, indicating efficient cost management and profitability. The revenue growth rate is modest at 0.76% TTM, reflecting stable yet slow growth. EBIT and EBITDA margins are at 14.1% and 18.7% respectively, which are healthy for the specialty chemicals industry, suggesting robust operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 0.64, indicating a moderate level of leverage, which is generally manageable. Return on equity (ROE) is 11.4% TTM, showcasing reasonable profitability from shareholders' equity. The equity ratio is 52.6%, suggesting a solid capital structure with a good proportion of assets financed by equity.

Cash Flow

Operating cash flow to net income ratio is 1.16, highlighting strong cash generation from operations relative to accounting profits. The free cash flow to net income ratio is 0.95, reflecting effective cash conversion. However, free cash flow growth has been slightly negative, indicating challenges in growing free cash flow amidst capital expenditure.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.48B	2.46B	2.33B	2.55B	2.40B	1.85B
	Gross Profit
1.04B	1.04B	918.50M	952.70M	960.80M	786.00M
	EBIT
350.30M	343.90M	173.60M	325.30M	299.90M	181.00M
	EBITDA
552.90M	501.60M	345.10M	496.10M	475.50M	305.70M
	Net Income Common Stockholders
286.20M	244.20M	118.10M	187.20M	203.30M	75.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
499.20M	359.40M	289.30M	265.60M	330.10M	291.90M
	Total Assets
4.79B	4.87B	4.97B	4.90B	5.14B	4.48B
	Total Debt
1.62B	1.84B	1.95B	1.90B	1.91B	1.52B
	Net Debt
1.12B	1.48B	1.66B	1.63B	1.58B	1.22B
	Total Liabilities
2.26B	2.48B	2.63B	2.55B	2.64B	2.17B
	Stockholders Equity
2.52B	2.38B	2.33B	2.33B	2.48B	2.32B
Cash Flow		Free Cash Flow
271.50M	293.60M	280.90M	253.50M	279.70M	232.50M
	Operating Cash Flow
331.90M	362.00M	333.60M	301.30M	326.00M	261.30M
	Investing Cash Flow
286.70M	-73.80M	-250.20M	-75.20M	-568.90M	-39.90M
	Financing Cash Flow
-403.30M	-206.60M	-58.70M	-275.60M	290.00M	-123.60M

Element Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.01
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESI, the sentiment is Negative. The current price of 21.01 is below the 20-day moving average (MA) of 21.64, above the 50-day MA of 20.60, and below the 200-day MA of 24.65, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 41.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESI.

Element Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	77 Outperform	$6.29B	14.10	23.59%	―	0.96%	82.78%
BCPC	75 Outperform	$5.27B	38.68	11.94%	0.54%	3.76%	18.06%
ESI	75 Outperform	$5.10B	17.82	11.75%	1.52%	6.08%	117.61%
CBT	71 Outperform	$4.01B	9.67	30.57%	2.41%	-0.05%	-2.76%
AVNT	71 Outperform	$3.14B	31.72	4.32%	3.15%	3.58%	-5.17%
FUL	66 Neutral	$2.93B	27.28	6.35%	1.74%	0.99%	-27.62%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

Element Solutions Corporate Events

Element Solutions Holds Successful Annual Meeting

On June 3, 2025, Element Solutions Inc held its annual meeting where stockholders voted on several key proposals. All eight director nominees were elected, the executive compensation plan was approved, and PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025. These decisions reflect strong shareholder support and are expected to influence the company’s governance and financial oversight positively.

The most recent analyst rating on (ESI) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Element Solutions stock, see the ESI Stock Forecast page.