Element Solutions Inc

Industrials
Major Chemicals
www.elementsolutionsinc.com

Earnings Score
Moat Score
Safety Score

Market Cap $6.72B
PE 25
Debt $1.94B
Cash $376.00M
EV $8.28B
FCF $272.60M

Earnings

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Sales & Net Margins

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Earnings	$266.60M
EBIT	$324.50M
ROE	11%
ROA	6%
FCF	$272.60M
Equity	$2.45B
Growth Stability	76%
PE	25.2
PEG	2.61
PB	2.74
P/FCF	24.64
P/S	2.79
Price/Cash	0.06
Debt/Equity	0.79
Debt/FCF	7.11
Net Margins	10%
Gross Margins	42%
Op. Margins	13%
Earnings CAGR	8%
Sales Growth YoY	8%
Sales Growth QoQ	5%
Sales CAGR	-4%
FCF CAGR	15%
Equity CAGR	-1%
Earnings Stability	0.15
Earnings Growth YoY	-227%
Earnings Growth QoQ	-57%
Earnings CAGR 5Y	10%

Sales CAGR 5Y	7%
FCF CAGR 5Y	7%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	-3%
Sales CAGR 3Y	-3%
FCF CAGR 3Y	3%
Equity CAGR 3Y	-1%
Market Cap	$6.72B
Revenue	$2.41B
Dividend Yield	1%
Payout Ratio	29%
Assets	$5.10B
Total Debt	$1.94B
Cash	$376.00M
Shares Outstanding	242M
EV	8.28B
Earnings Score	9%
Moat Score	86%
Safety Score	78%
Final Score	57%
Working Capital	967.2M
Current Ratio	3.52
Gross Profit	$1.00B
Shares Growth 3y	-1%
Equity Growth QoQ	3%
Equity Growth YoY	9%

Assets & ROA

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Stockholders Equity & ROE

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Element Solutions Inc specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers' manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing, consumer packaging, and offshore energy.

SEC Filings

Direct access to Element Solutions Inc (ESI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Element Solutions Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Element Solutions Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 15%

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Element Solutions Inc Discounted Cash Flow

Fully customizable DCF calculator online for Element Solutions Inc.

Years

Calculation mode

= $7.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$273M	$313M	$360M	$413M	$475M	$545M	$627M	$720M	$827M	$950M	$1.1B	$11B
DCF		$285M	$297M	$310M	$324M	$339M	$354M	$369M	$386M	$403M	$421M	$4.2B
Value	$7.7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-31%	-12%	-2%	-8%	-17%	5%	4%	8%	7%	5%	10%
ROA	-	1%	3%	2%	3%	6%	5%	6%	7%	3%	6%
ROE	-	-14%	-3%	-10%	-15%	4%	3%	8%	8%	5%	11%

Good Net Margins (10.34%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	22.55	58.14	67.45	-185.87	10.98	6.24	6.95	7.76	6.98	7.11
Debt over Equity	0.56	2.37	1.85	1.94	2.49	0.7	0.66	0.78	0.82	0.84	0.79
Growth Stability	-	-	-	-	-	-	-	-	100%	76%	76%

Bad Debt/FCF ratio (7.11)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.79)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (76%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	202%	41%	5%	-48%	-6%	1%	29%	6%	-8%	7%
Earnings YoY growth	-	18%	-75%	286%	10%	-128%	-18%	169%	-8%	-37%	10%
Equity YoY growth	-	-11%	27%	-1%	-24%	2%	4%	8%	-6%	-0%	1%
FCF YoY growth	-	199%	-61%	-11%	-136%	-584%	75%	13%	-11%	13%	7%