Elementis PLC (GB:ELM)
LSE:ELM
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Elementis
(LSE:ELM)
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Rating:58Neutral
Price Target:
158.00 p
▼(-0.50% Downside)
Action:Reiterated
Date:03/07/26
The score is mainly supported by improving financial resilience (much lower debt and continued positive free cash flow) and a constructive earnings-call outlook with margin/EPS progress and clear medium-term targets. These positives are tempered by weak technical momentum (below major moving averages with negative MACD) and valuation risk tied to ongoing net losses (negative P/E), alongside recent revenue softness.
Positive Factors
Leverage materially reduced; stronger balance sheet
Material debt reduction and a sizable equity base lower refinancing and solvency risk, giving management durable financial flexibility. This supports bolt‑ons, targeted capex and dividends while insulating the business from cyclical downturns and reducing probability of distress over the medium term.
Negative Factors
Revenue decline and Coatings weakness
Exposure to cyclical coatings and a recent top‑line decline reduce scale and make margin targets harder to hit consistently. Persistent revenue softness limits operating leverage, raises the bar on innovation/portfolio actions to offset lost volumes, and slows progress on medium‑term growth objectives.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage materially reduced; stronger balance sheet
Material debt reduction and a sizable equity base lower refinancing and solvency risk, giving management durable financial flexibility. This supports bolt‑ons, targeted capex and dividends while insulating the business from cyclical downturns and reducing probability of distress over the medium term.
Read all positive factors
Elementis (ELM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£849.79M
Dividend Yield1.34%
Average Volume (3M)863.12K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-21.51%
EPS Growth7.34%
CountryUK
Employees1,244
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.09
Shares Outstanding572,636,000
10 Day Avg. Volume687,184
30 Day Avg. Volume863,119
Financial Highlights & Ratios
PEG Ratio14.26
Price to Book (P/B)2.02
Price to Sales (P/S)2.14
P/FCF Ratio24.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£201.67Price Target Upside26.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.15
Revenue Forecast (FY)£593.58M
Elementis Business Overview & Revenue Model
Company Description
Elementis plc operates as a global specialty chemicals company, with business activities spanning the United Kingdom, North America, continental Europe, and other international markets. The firm's operations are divided into four primary segments:...
How the Company Makes Money
Elementis generates revenue through the sale of specialty chemicals and additives used in a wide range of applications. The company's key revenue streams include the Personal Care sector, where it supplies ingredients for cosmetics and skincare pr...
Elementis Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call shows a constructive transformation story: management delivered profit growth, margin expansion (+150 bps), strong Personal Care outperformance (revenue +2.4%, profit +16.9%, margin +410 bps), record innovation (16.4%) and continued cost-savings and sustainability progress. Offsetting these positives are modest revenue decline (-1.0% reported / -1.9% CC), Coatings weakness (revenue down ≈3.5% and margin compression), lower free cash flow ($41M vs $51M) and higher leverage (1.3x). Strategic portfolio moves (Alchemy acquisition, Talc sold, pharma disposal) sharpen focus and are accretive over time but change scale. On balance the highlights — margin expansion, EPS growth (+14.2%), successful cost programs, innovation momentum and clear strategic direction — slightly outweigh the near-term operational and macro headwinds.Positive Updates
Adjusted Operating Profit Growth and Margin Expansion
Adjusted operating profit increased 4.6% to $126.7M and group adjusted operating margin improved 150 basis points to 21.2%, demonstrating margin resilience despite a softer demand environment.
Negative Updates
Group Revenue Decline
Group revenue fell to $597.5M, down 1.0% reported and down 1.9% on a constant currency basis versus prior year, reflecting softer demand in coatings and mix changes.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted Operating Profit Growth and Margin Expansion
Adjusted operating profit increased 4.6% to $126.7M and group adjusted operating margin improved 150 basis points to 21.2%, demonstrating margin resilience despite a softer demand environment.
Read all positive updates
Company Guidance
The management reiterated medium‑term guidance under the Elevate Elementis plan of mid‑single‑digit revenue growth, operating margins above 23%, 3‑year operating cash conversion >90% and ROCE (ex‑goodwill) >30%, alongside a target to lift innovation sales from 16.4% in 2025 toward 20%; near‑term technicals include 2026 CapEx of 4–5% of revenue, R&D rising from 2% to 3% of revenue (a 50% increase), a goal to reach ~1x net debt/EBITDA organically by end‑2026 (net debt/EBITDA was 1.3x at year‑end with net debt $185.4m), and a ~30% dividend payout policy (2025 full‑year dividend $0.043, final $0.03); 2025 results to keep in mind as context were revenue $597.5m (‑1% reported, ‑1.9% CC), adjusted operating profit $126.7m (+4.6%), adjusted margin 21.2% (+150bps), adjusted EPS $0.137 (+14.2%), free cash flow $41m, and the company expects to distribute net proceeds from the announced pharma disposal (pharma revenue $35m in the prior year); cost‑savings deliverables include $18m of self‑help savings in 2025, completion of elements of a $30m program ( ~$12m via Fit for the Future) plus an additional $10m target (of which $6m is already delivered, $4m to come by end‑2026), while operational targets include a 20% improvement at St. Louis (two‑thirds of a 30% unlock) and achieving half of a 20% On‑Time‑In‑Full uplift.Elementis Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 610.04M | 738.30M | 713.40M | 736.40M | 709.40M |
| Gross Profit | 284.34M | 338.00M | 284.30M | 298.90M | 289.00M |
| EBITDA | 107.00M | 27.20M | 115.60M | 23.70M | 87.30M |
| Net Income | -46.45M | -47.80M | 26.50M | -51.10M | 2.50M |
Balance Sheet | |||||
| Total Assets | 1.12B | 1.31B | 1.51B | 1.63B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 54.62M | 59.90M | 65.80M | 54.90M | 84.60M |
| Total Debt | 256.69M | 253.90M | 300.90M | 453.70M | 522.70M |
| Total Liabilities | 470.87M | 551.40M | 664.10M | 843.10M | 935.60M |
| Stockholders Equity | 644.13M | 757.00M | 847.30M | 783.90M | 901.00M |
Cash Flow | |||||
| Free Cash Flow | 54.01M | 62.20M | 38.60M | 29.90M | 13.60M |
| Operating Cash Flow | 76.78M | 100.00M | 76.80M | 77.00M | 66.70M |
| Investing Cash Flow | -8.47M | -37.50M | 101.10M | -46.90M | -65.00M |
| Financing Cash Flow | -84.23M | -59.80M | -168.00M | -57.80M | -25.30M |
Elementis Technical Analysis
Negative
158.80
Price Trends
149.70
Negative
154.97
Negative
158.13
Negative
Market Momentum
0.62
Negative
46.88
Neutral
18.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ELM, the sentiment is Negative. The current price of 158.8 is above the 20-day moving average (MA) of 148.96, above the 50-day MA of 149.70, and above the 200-day MA of 158.13, indicating a bearish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ELM.
Elementis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | £4.00B | 65.97 | 2.82% | 3.45% | 4.38% | -60.87% | |
64 Neutral | £178.31M | 41.10 | 3.22% | 4.08% | -11.72% | -60.87% | |
63 Neutral | £525.06M | -26.67 | -4.95% | 9.48% | -1.24% | -166.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | £3.47B | -36.20 | -4.66% | 3.54% | 7.70% | -128.55% | |
58 Neutral | £849.79M | -24.82 | -6.85% | 1.34% | -21.51% | 7.34% | |
54 Neutral | £170.50M | -1.08 | -16.66% | ― | -12.46% | -116.21% |
* Basic Materials Sector Average
GB:ELM
Elementis
148.40
-3.40
-2.24%
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Elementis Corporate Events
Regulatory Filings and Compliance
Elementis Reports No Share Issuances Under Employee and Incentive Schemes
Neutral
Mar 5, 2026
Elementis reported that across its various executive share option schemes, savings-related share option schemes and long term incentive plans, there were no new shares issued or allotted in the six months to 28 February 2026. The balances of unall...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Elementis lifts profits and margins as it sharpens focus on specialty chemicals
Positive
Mar 5, 2026
Elementis reported resilient 2025 results in a weak demand environment, with revenue edging down 1% to $597.5m but adjusted operating profit rising 6.3% to $126.7m and margins improving to 21.2%. Personal Care was the standout, with revenue up 3.3...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Elementis sharpens specialty chemicals focus as profit margins rise in 2025
Positive
Mar 5, 2026
Elementis reported resilient 2025 results in a soft demand environment, with revenue slipping 1% to $597.5m but adjusted operating profit rising 4.6% at constant currency to $126.7m and margins improving to 21.2%. Personal Care led growth with rev...
Regulatory Filings and Compliance
Elementis Updates Total Voting Share Capital for FCA Disclosure Thresholds
Neutral
Mar 2, 2026
Elementis plc has confirmed that as of 28 February 2026 it has an issued and voting share capital of 569,315,667 ordinary shares of 5 pence each, of which 67,986 are held in treasury. This updated share count provides the official denominator for ...
Executive/Board ChangesRegulatory Filings and Compliance
Elementis Announces Retirement of Long‑Serving Non‑Executive Director
Neutral
Feb 25, 2026
Elementis plc has announced a forthcoming change to its board, with independent non-executive director Dorothee Deuring set to retire on 28 February 2026. Her departure will also see her step down from the Audit, Nomination and Remuneration Commit...
Regulatory Filings and Compliance
Elementis Updates Total Voting Share Capital for Regulatory Disclosure
Neutral
Feb 2, 2026
Elementis plc reported that as of 31 January 2026 it has an issued and voting share capital of 569,303,958 ordinary shares of 5 pence each, of which 79,695 shares are held in treasury. The updated share count provides the official denominator for ...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Elementis Beats Profit Expectations as Strategy and Acquisition Lift Margins
Positive
Jan 21, 2026
Elementis reported a resilient 2025 trading performance, with revenue expected to be in line with market consensus and adjusted operating profit marginally ahead, supported by improved operating margins. Management attributed the margin gains to i...
Regulatory Filings and Compliance
Elementis Confirms Total Voting Rights and Share Capital as of Year-End 2025
Neutral
Jan 2, 2026
Elementis plc has reported that, as of 31 December 2025, its issued and voting share capital consists of 569,295,044 ordinary shares of 5 pence each, of which 88,609 are held in treasury. The disclosed figure will serve as the reference denominato...
Executive/Board Changes
Elementis Confirms CFO Transition as Kearney-Croft Joins Board
Neutral
Jan 2, 2026
Elementis plc has confirmed a planned change in its senior leadership, with the appointment of Kath Kearney-Croft as Chief Financial Officer effective 1 January 2026 and the simultaneous departure of former CFO Ralph Hewins from both his role and ...
Other
Elementis CEO Retains Shares Following Maturity of Savings-Related Options
Positive
Dec 24, 2025
Elementis PLC has disclosed a management share transaction involving its chief executive officer and director Luc Van Ravenstein. Following the maturity of 40,800 US savings-related share options granted in September 2023, Van Ravenstein has retai...
Business Operations and StrategyStock Buyback
Elementis Executes Share Buyback to Optimize Capital Structure
Positive
Dec 15, 2025
Elementis, a company engaged in a share buyback program, has repurchased 136,378 of its ordinary shares at an average price of 167.9346 pence per share. This transaction, conducted through Deutsche Bank AG, London Branch, is part of a strategic mo...
Stock Buyback
Elementis Completes £40 Million Share Buyback Programme
Positive
Dec 15, 2025
Elementis PLC has successfully completed its share buyback programme, purchasing over 24 million ordinary shares at a total cost of nearly £40 million. This move, which involved cancelling a significant portion of its issued share capital, is...
Stock Buyback
Elementis Executes Share Buyback, Reducing Share Count
Neutral
Dec 11, 2025
Elementis, a company involved in a share buyback program, announced the purchase and cancellation of 165,000 of its own ordinary shares at an average price of 165.6504 pence per share. This transaction reduces the total number of ordinary shares i...
Business Operations and StrategyStock Buyback
Elementis Executes Share Buyback to Optimize Capital Structure
Positive
Dec 10, 2025
Elementis, a company involved in the chemical industry, has executed a share buyback program as announced earlier this year. The company repurchased 165,000 of its ordinary shares at an average price of 165.5403 pence per share, which will be canc...
Stock Buyback
Elementis Executes Share Buyback, Reducing Share Count
Neutral
Dec 9, 2025
Elementis plc, a company involved in a share buyback programme, has repurchased 165,000 of its ordinary shares at an average price of 165.8570 pence per share for cancellation. This transaction reduces the total number of ordinary shares in issue ...
Business Operations and StrategyStock Buyback
Elementis Executes Share Buyback to Optimize Capital Structure
Neutral
Dec 8, 2025
Elementis, a company involved in a share buyback program, has repurchased 140,000 of its own ordinary shares at an average price of 166.4362 pence per share. This transaction, conducted through Deutsche Bank AG, London Branch, results in a total o...
Stock Buyback
Elementis Executes Share Buyback to Optimize Shareholder Value
Neutral
Dec 8, 2025
Elementis plc, a company engaged in a share buyback programme, has announced the repurchase of 14,813 of its own ordinary shares at an average price of 166.1023 pence per share. This transaction is part of a previously announced buyback initiative...
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.