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Element Solutions
(NYSE:ESI)
Select Model
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Rating:57Neutral
Price Target:
$40.00
▲(2.51% Upside)
Action:Reiterated
Date:07/08/26
The score is held back primarily by weakening cash flow conversion and a high valuation multiple, alongside weak technical momentum. Offsetting these is a constructive earnings-call update with raised EBITDA/EPS guidance and strong Electronics-driven growth and margin expansion, but near-term cash flow and leverage/metal-price volatility remain key risks.
Positive Factors
Recurring consumables & technical services
ESI's core model sells consumable chemistries plus technical support, creating repeat purchase dynamics and higher customer stickiness through qualification cycles and on-site know-how. That durable revenue mix supports predictable demand and wallet-share gains over multi-quarter horizons.
Negative Factors
Weakened cash conversion & negative near-term FCF
Material deterioration in cash conversion, with FCF below net income, reduces financial flexibility for deleveraging, reinvestment or buybacks. Persistent working-capital sensitivity means earnings improvements may not translate to cash quickly, constraining balance-sheet repair over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables & technical services
ESI's core model sells consumable chemistries plus technical support, creating repeat purchase dynamics and higher customer stickiness through qualification cycles and on-site know-how. That durable revenue mix supports predictable demand and wallet-share gains over multi-quarter horizons.
Read all positive factors
Element Solutions Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Shows how much profit each business segment generates after core adjustments, revealing which parts of Element Solutions drive earnings, carry the best margins, and offer the most cash to fund growth or pay down debt. Helps spot operational strength, margin trends, and where cost pressures or scale benefits are concentrated.
Shows how much profit each business segment generates after core adjustments, revealing which parts of Element Solutions drive earnings, carry the best margins, and offer the most cash to fund growth or pay down debt. Helps spot operational strength, margin trends, and where cost pressures or scale benefits are concentrated.
Data provided by:
The Fly
The FlyElement Solutions (ESI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.11B
Dividend Yield0.86%
Average Volume (3M)5.36M
Price to Earnings (P/E)60.8
Beta (1Y)1.29
Revenue Growth13.00%
EPS Growth-48.06%
CountryUS
Employees5,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.62
Shares Outstanding243,686,070
10 Day Avg. Volume9,039,806
30 Day Avg. Volume5,355,911
Financial Highlights & Ratios
PEG Ratio-1.45
Price to Book (P/B)2.26
Price to Sales (P/S)2.37
P/FCF Ratio26.57
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$48.20Price Target Upside23.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.78
Revenue Forecast (FY)$3.48B
Element Solutions Business Overview & Revenue Model
Company Description
Headquartered in Fort Lauderdale, Florida, Element Solutions Inc (ESI) operates as a multinational specialty chemicals enterprise, with significant business operations in the United States, China, and various international territories. The company...
How the Company Makes Money
ESI makes money primarily by manufacturing and selling specialty chemical products and related process solutions, with revenue largely recognized from product shipments to industrial and electronics customers.
Key revenue streams include:
- Elect...
Element Solutions Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 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 | 335.80M | 320.80M | 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 | 1.64B | 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
Negative
39.02
Price Trends
42.44
Negative
39.14
Negative
33.24
Positive
Market Momentum
-1.58
Positive
35.10
Neutral
5.37
Positive
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 39.02 is below the 20-day moving average (MA) of 42.47, below the 50-day MA of 42.44, and above the 200-day MA of 33.24, indicating a neutral trend. The MACD of -1.58 indicates Positive momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of 5.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.25B | 33.34 | 12.38% | 0.61% | 9.62% | 16.72% | |
70 Outperform | $6.92B | 18.91 | 15.85% | ― | -2.57% | -16.43% | |
68 Neutral | $4.64B | 32.07 | 12.14% | 1.70% | 5.80% | 12.24% | |
65 Neutral | $7.84B | 19.66 | 6.77% | 5.33% | -7.41% | -56.10% | |
65 Neutral | $7.08B | 17.63 | 24.12% | 1.59% | -3.47% | -12.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $9.11B | 60.79 | 5.56% | 1.25% | 13.00% | -48.06% |
* Basic Materials Sector Average
ESI
Element Solutions
36.46
12.24
50.56%
BCPC
Balchem
162.97
10.89
7.16%
EMN
Eastman Chemical
68.08
-5.72
-7.75%
NEU
Newmarket
779.81
66.34
9.30%
SXT
Sensient Technologies
109.71
3.10
2.91%
AXTA
Axalta Coating Systems
32.12
2.34
7.86%
Element Solutions Corporate Events
Executive/Board ChangesDelistings and Listing ChangesM&A TransactionsRegulatory Filings and Compliance
Element Solutions to Merge with Solstice Advanced Materials
Positive
Jul 6, 2026
On July 6, 2026, Element Solutions entered into a merger agreement with Solstice Advanced Materials that will see Element Solutions become a wholly owned subsidiary of Solstice through a two-step reorganization. Element Solutions shareholders are ...
Executive/Board ChangesShareholder Meetings
Element Solutions Investors Reject Say-on-Pay at Annual Meeting
Negative
May 5, 2026
On May 4, 2026, Element Solutions Inc held its 2026 annual meeting of stockholders, with approximately 96% of outstanding common shares represented in person or by proxy. Stockholders elected eight director nominees to serve until the 2027 annual ...
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.