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Element Solutions
(NYSE:ESI)
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Rating:62Neutral
Price Target:
$39.00
▲(9.86% Upside)
Action:Reiterated
Date:10/22/26
The score is anchored by solid but pressured fundamentals (strong revenue growth offset by weaker margins and cash conversion) and a very optimistic valuation (high P/E, low yield). These are partially counterbalanced by a notably strong earnings-call outlook, including raised guidance and sustained AI/electronics-driven demand, while technical indicators are neutral and do not materially reinforce either bullish or bearish positioning.
Positive Factors
Electronics Growth
Double-digit growth across every Electronics vertical indicates broad demand rather than reliance on one product line. Exposure to AI infrastructure, advanced packaging and complex data-center boards can support sustained consumables usage, while market outperformance suggests strengthening share in high-value applications.
Negative Factors
Margin Compression
The multi-year decline in net margin shows that strong revenue growth is not yet translating consistently into earnings expansion. Higher costs, pricing pressure and segment-specific issues could continue to limit operating leverage, reducing the durability of near-term profit growth even if demand remains healthy.
Read all positive and negative factors
Positive Factors
Negative Factors
Electronics Growth
Double-digit growth across every Electronics vertical indicates broad demand rather than reliance on one product line. Exposure to AI infrastructure, advanced packaging and complex data-center boards can support sustained consumables usage, while market outperformance suggests strengthening share in high-value applications.
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.
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The Fly
The FlyElement Solutions (ESI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.69B
Dividend Yield0.88%
Average Volume (3M)4.18M
Price to Earnings (P/E)43.0
Beta (1Y)1.33
Revenue Growth26.61%
EPS Growth-25.95%
CountryUS
Employees5,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.74
Shares Outstanding243,690,920
10 Day Avg. Volume3,728,111
30 Day Avg. Volume4,179,205
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 Cap1.23
Enterprise Value/Revenue3.40
Enterprise Value/Gross Profit8.85
Enterprise Value/Ebitda28.21
Forecast
1Y Price Target
$47.78Price Target Upside34.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.82
Revenue Forecast (FY)$3.74B
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
Element Solutions makes money primarily by selling specialty chemical formulations and related process solutions that are consumed in customers’ manufacturing workflows. Revenue is generated through (1) product sales of proprietary chemistries use...
Element Solutions Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call was strongly positive, characterized by record quarterly results, broad-based Electronics growth, robust AI infrastructure demand, successful acquisition integration, strong cash generation, reduced leverage, and higher full-year guidance. The company also reported meaningful progress in capacity expansion and Kuprion customer qualifications. Challenges were concentrated in the Specialties segment, including an offshore customer outage, soft industrial volumes, consumer electronics weakness, and higher incentive compensation allocations, but management described several of these effects as temporary or improving.Positive Updates
Record Quarter and Raised Full-Year Guidance
Element Solutions delivered record quarterly revenue, adjusted EBITDA, and adjusted EPS. The company raised full-year adjusted EBITDA guidance to approximately $720 million and expects 2026 adjusted EPS growth of north of 20% on a full-year basis.
Negative Updates
Specialties Segment Margin Challenges
The Specialties segment faced challenges from materials inflation and uneven demand dynamics. Softer margins resulted from an equipment failure that shut down a large offshore customer, as well as price-cost timing in Industrial Solutions.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarter and Raised Full-Year Guidance
Element Solutions delivered record quarterly revenue, adjusted EBITDA, and adjusted EPS. The company raised full-year adjusted EBITDA guidance to approximately $720 million and expects 2026 adjusted EPS growth of north of 20% on a full-year basis.
Read all positive updates
Company Guidance
The company raised full-year adjusted EBITDA guidance to approximately $720 million, implying 2026 adjusted EPS growth of north of 20% on a full-year basis, based on current exchange rates and stable metal prices; the outlook assumes a continuation of AI-driven electronics investment, normal seasonality, and continued sequential acceleration in EFC performance. Q4 adjusted EBITDA of $175 million, $176 million is a reasonable number to back into, with sequential softness of around $10 million-$15 million, and the guide sequentially implies that same $15 million. CapEx for the year is expected to be roughly $110 million, less than 3% of expected full-year sales, while Q4 cash flows should also be strong but are unlikely to match Q3. The company expects the high end of the 30%-40% incremental margin range to continue into next year, expects Circuitry Solutions outperformance to continue to outpace the 2% outperformance baseline, and expects full recovery from the offshore customer outage by Q1 of next year; Kuprion revenue is expected to ramp next year, with multiple sites supplying multiple customers by late 2027, early 2028 and material EBITDA contribution in 2028.Element Solutions Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
60
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.15B | 2.55B | 2.46B | 2.33B | 2.55B | 2.40B |
| Gross Profit | 1.21B | 1.07B | 1.04B | 918.50M | 952.70M | 960.80M |
| EBITDA | 379.80M | 320.80M | 501.60M | 345.10M | 496.10M | 475.50M |
| Net Income | 178.60M | 190.80M | 244.20M | 118.10M | 187.20M | 203.30M |
Balance Sheet | ||||||
| Total Assets | 5.78B | 5.10B | 4.87B | 4.97B | 4.90B | 5.14B |
| Cash, Cash Equivalents and Short-Term Investments | 189.60M | 626.50M | 359.40M | 289.30M | 265.60M | 330.10M |
| Total Debt | 2.12B | 1.64B | 1.91B | 2.03B | 1.98B | 1.97B |
| Total Liabilities | 2.96B | 2.41B | 2.48B | 2.63B | 2.55B | 2.64B |
| Stockholders Equity | 2.81B | 2.67B | 2.38B | 2.33B | 2.33B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 131.60M | 227.60M | 293.60M | 283.10M | 249.90M | 276.20M |
| Operating Cash Flow | 218.10M | 289.80M | 362.00M | 335.80M | 297.70M | 322.50M |
| Investing Cash Flow | -955.70M | 286.10M | -73.80M | -250.20M | -75.20M | -568.90M |
| Financing Cash Flow | 402.10M | -320.40M | -206.60M | -58.70M | -275.60M | 290.00M |
Element Solutions Technical Analysis
Positive
35.50
Price Trends
35.67
Positive
38.25
Negative
36.57
Negative
Market Momentum
0.10
Positive
52.54
Neutral
56.10
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 35.5 is below the 20-day moving average (MA) of 36.26, below the 50-day MA of 35.67, and below the 200-day MA of 36.57, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 56.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESI.
Element Solutions Risk Analysis
Element Solutions disclosed 38 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $7.22B | 21.46 | 14.59% | ― | -0.92% | -20.25% | |
70 Outperform | $12.74B | 18.39 | 21.13% | 2.19% | 5.96% | 0.68% | |
62 Neutral | $8.69B | 43.00 | 7.39% | 0.88% | 26.61% | -25.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.70B | 27.83 | 7.12% | 1.31% | 7.79% | ― | |
60 Neutral | $24.14B | 15.69 | 19.47% | 2.61% | 1.47% | 23.56% | |
56 Neutral | $3.30B | 63.28 | 2.77% | 2.31% | -1.39% | ― |
* Basic Materials Sector Average
ESI
Element Solutions
36.34
11.20
44.56%
ASH
Ashland
72.14
23.94
49.66%
PPG
PPG Industries
110.17
10.62
10.66%
KWR
Quaker Chemical
156.67
25.29
19.25%
RPM
RPM International
99.88
-9.57
-8.74%
AXTA
Axalta Coating Systems
34.98
6.77
24.00%
Element Solutions Corporate Events
Business Operations and StrategyM&A Transactions
Element Solutions Refocuses Strategy After Merger Termination
Positive
Aug 28, 2026
Element Solutions Inc, a global specialty chemicals technology provider, develops solutions that support advanced manufacturing in industries such as semiconductors, high-performance computing, automotive electronics, consumer devices and aerospac...
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.