Element Solutions (ESI) AI Stock Analysis

• Market Cap: $6.20B
• Dividend Yield: 1.24%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.22
• Revenue Growth: 5.41%
• EPS Growth: 23.44%
• Country: US
• Employees: 5,300
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Chemicals - Specialty
• EPS (TTM): 0.37
• Shares Outstanding: 241,616,670
• 10 Day Avg. Volume: 1,439,221
• 30 Day Avg. Volume: 1,843,217
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 17.85
• 1Y Price Target: $28.38
• Price Target Upside: 10.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $26.00 ▲(0.97% Upside)

Element Solutions' strong financial performance and positive earnings call guidance are key strengths. Technical indicators suggest a neutral market position, while valuation metrics indicate fair pricing. Positive corporate events further support the stock's outlook, though high debt levels and macroeconomic uncertainties pose risks.

Positive Factors

Financial Performance

ESI delivered $128mm EBITDA in 1Q beating Street's $125mm, with margins at 26.1%, up 50bps Y/Y.

Market Position

ESI's localized production footprint and ability to pass through most raw material inflation costs will limit the direct impact from global tariff standoff.

Organic Growth

ESI saw its strongest organic growth since early 2021, despite slower automotive and industrial end markets.

Negative Factors

Price Target

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

Stock Performance

ESI’s shares have fallen 34% recently, viewed as an attractive buying opportunity given limited tariff impact to raw material costs and demand.

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 generates revenue primarily through the sale of specialty chemicals and advanced materials to various industries. Key revenue streams include the electronics segment, which contributes significantly through the provision of chemicals used in semiconductor manufacturing and circuit board production. The industrial segment also provides a steady income through surface treatment solutions and coatings for automotive and other industrial applications. Additionally, ESI benefits from strategic partnerships with leading manufacturers and technology firms, which enhance its product offerings and market reach. The company’s focus on innovation and R&D further drives revenue growth by enabling the development of new products that meet evolving industry needs.

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. Continued focus on revenue growth and cash flow expansion would further strengthen its financial position.

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	2.49B	2.46B	2.33B	2.55B	2.40B	1.85B
Gross Profit	1.04B	1.04B	918.50M	952.70M	960.80M	786.00M
EBITDA	369.50M	501.60M	345.10M	496.10M	475.50M	305.70M
Net Income	240.40M	244.20M	118.10M	187.20M	203.30M	75.70M
Balance Sheet
Total Assets	5.00B	4.87B	4.97B	4.90B	5.14B	4.48B
Cash, Cash Equivalents and Short-Term Investments	529.90M	359.40M	289.30M	265.60M	330.10M	291.90M
Total Debt	1.62B	1.84B	1.95B	1.90B	1.91B	1.52B
Total Liabilities	2.36B	2.48B	2.63B	2.55B	2.64B	2.17B
Stockholders Equity	2.63B	2.38B	2.33B	2.33B	2.48B	2.32B
Cash Flow
Free Cash Flow	270.60M	293.60M	280.90M	253.50M	279.70M	232.50M
Operating Cash Flow	334.20M	362.00M	333.60M	301.30M	326.00M	261.30M
Investing Cash Flow	-58.70M	-73.80M	-250.20M	-75.20M	-568.90M	-39.90M
Financing Cash Flow	-152.50M	-206.60M	-58.70M	-275.60M	290.00M	-123.60M

Element Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 25.75 is above the 20-day moving average (MA) of 24.58, above the 50-day MA of 23.99, and above the 200-day MA of 24.15, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 66.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESI.

Element Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	80 Outperform	$5.27B	37.13	11.99%	0.53%	5.74%	21.54%
AXTA	74 Outperform	$6.81B	15.46	22.09%	―	-1.01%	50.58%
ESI	72 Outperform	$6.20B	25.92	9.62%	1.24%	5.41%	23.44%
CBT	71 Outperform	$4.34B	10.66	29.03%	2.12%	-3.61%	-9.70%
FUL	70 Outperform	$3.33B	33.19	5.62%	1.48%	-0.09%	-37.60%
AVNT	70 Neutral	$3.40B	29.15	5.09%	2.84%	3.28%	1.69%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%

Element Solutions Corporate Events

Element Solutions Revises 2025 Financial Outlook Upward

On July 7, 2025, Element Solutions Inc announced an upward revision of its second quarter and full year 2025 financial outlook. This announcement is expected to positively impact the company’s operations and market positioning, signaling potential growth and increased confidence among stakeholders.

The most recent analyst rating on (ESI) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Element Solutions stock, see the ESI Stock Forecast page.

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.