Elementis (ELM) AI Stock Analysis

• Market Cap: £932.65M
• Dividend Yield: 1.38%
• Average Volume (3M): 841.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -11.78%
• EPS Growth: -92.61%
• Country: UK
• Employees: 1,244
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.05
• Shares Outstanding: 577,392,200
• 10 Day Avg. Volume: 1,135,644
• 30 Day Avg. Volume: 841,060
• PEG Ratio: 0.08
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 17.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £195.17
• Price Target Upside: 20.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 55 Neutral
• Price Target: 167.00p ▲(3.21% Upside)

Elementis faces challenges with profitability and valuation, as reflected by its negative P/E ratio and recurrent net losses. While the balance sheet is stable and cash flow generation is strong, the lack of positive earnings and weak technical indicators weigh heavily on the stock's overall score. Improving operational efficiency and profitability is crucial for future performance.

Positive Factors

Cash Flow Generation

Elementis's ability to generate strong free cash flow indicates efficient cash management, providing resources for reinvestment and debt reduction, which is crucial for long-term sustainability.

Balance Sheet Stability

A stable balance sheet with moderate leverage enhances Elementis's financial flexibility, allowing it to navigate economic fluctuations and invest in growth opportunities.

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support profitability improvements over time despite current challenges.

Negative Factors

Profitability Challenges

Elementis faces ongoing profitability challenges, which could hinder its ability to reinvest in the business and return value to shareholders unless addressed.

Revenue Decline

Declining revenue trends suggest potential market share loss or demand issues, which could impact long-term growth prospects if not reversed.

Negative Return on Equity

Negative return on equity indicates inefficiencies in generating shareholder returns, which may affect investor confidence and capital raising ability.

Elementis Business Overview & Revenue Model

Company Description

Elementis plc operates as a specialty chemical company in the United Kingdom, North America, rest of Europe, and internationally. It operates through four segments: Personal Care, Coatings, Talc, and Chromium. The Personal Care segment produces and sells rheological modifiers and compounded products for antiperspirants/deodorants, bath and soap, color cosmetics, and hair and skin care products. The Coatings segment produces and sells rheological modifiers and additives for industrial finishes, architectural coatings, construction, adhesives and sealants, inks, colorant dispersions, and specialty applications; and bentonite and hectorite clays, as well as polymer-based additives used in drilling, simulation, and cementing applications. The Talc segment produces and supplies talc for use in plastics, paints and coatings, food and pharmaceuticals, ceramics, polyester putties, paper, and pulp sectors. The Chromium segment produces chromium chemicals, such as chromic oxide, chromic acid, chrome sulfate, sodium dichromate, and sodium sulfate for use in pigments, cosmetics, refractories, chrome metal production, metal and plastic finishing, wood treatment, leather tanning, trivalent metal finishing, coatings, and metal passivation, as well as for making detergents, glasses, papers, and starches. It also offers personal care products, waxes, additives and resins, organoclays, colourants, and other specialty additives. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Elementis generates revenue primarily through the sale of its specialty chemical products across its diverse market segments. The company operates on a revenue model that includes direct sales to manufacturers and distributors, as well as long-term contracts with key clients in various industries. Significant revenue streams come from its Personal Care and Coatings segments, where it provides additives that improve product performance and formulation efficiency. Additionally, Elementis benefits from partnerships with leading companies in the oil and gas sector, where it supplies specialized chemicals and solutions that enhance drilling and production processes. The company's focus on innovation and sustainability also positions it to capitalize on emerging trends in the specialty chemicals market, contributing to its overall earnings.

Elementis Financial Statement Overview

Summary

Elementis shows mixed financial performance. Strong cash flow generation is a positive, but profitability is a concern with recurrent net losses. The balance sheet is stable with moderate debt, offering some financial flexibility. Continued focus on improving operational efficiency and profitability is essential for long-term sustainability.

Income Statement

The company has faced a decline in revenue over recent years, with significant variability in gross and net profit margins. The gross profit margin for 2024 is approximately 45.8%, which is strong. However, a negative EBIT and net losses have led to a negative net profit margin, highlighting profitability challenges. Revenue growth compared to 2023 is 3.49%, indicating slight improvement but still below historical levels.

Balance Sheet

The balance sheet shows moderate financial stability with a debt-to-equity ratio of approximately 0.34, suggesting manageable leverage. Return on equity is negative due to net losses, indicating challenges in generating returns for shareholders. The equity ratio of 57.8% signifies a solid proportion of equity financing, enhancing financial stability.

Cash Flow

The company has demonstrated strong free cash flow generation, with a notable growth rate of 61.14% from the previous year, indicating improved cash efficiency. The operating cash flow to net income ratio is negative due to losses, but positive free cash flow to net income suggests good cash conversion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	738.30M	713.40M	736.40M	880.10M	751.30M
Gross Profit	338.00M	284.30M	298.90M	334.90M	257.30M
EBITDA	27.20M	115.60M	23.70M	87.30M	24.90M
Net Income	-47.80M	26.50M	-51.10M	2.50M	-67.00M
Balance Sheet
Total Assets	1.31B	1.51B	1.63B	1.84B	1.84B
Cash, Cash Equivalents and Short-Term Investments	59.90M	65.80M	65.60M	84.60M	111.00M
Total Debt	253.90M	300.90M	453.70M	522.70M	558.70M
Total Liabilities	551.40M	664.10M	843.10M	935.60M	975.20M
Stockholders Equity	757.00M	847.30M	783.90M	901.00M	860.40M
Cash Flow
Free Cash Flow	62.20M	38.60M	29.90M	13.60M	65.30M
Operating Cash Flow	100.00M	76.80M	77.00M	66.70M	107.10M
Investing Cash Flow	-37.50M	101.10M	-46.90M	-65.00M	-39.20M
Financing Cash Flow	-59.80M	-168.00M	-57.80M	-25.30M	-64.70M

Elementis Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 161.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ELM, the sentiment is Neutral. The current price of 161.8 is below the 20-day moving average (MA) of 163.51, below the 50-day MA of 165.84, and above the 200-day MA of 147.34, indicating a neutral trend. The MACD of -0.94 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 37.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ELM.

Elementis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCT	77 Outperform	629.71M	21.20	3.73%	8.23%	4.75%	-3.29%
JMAT	75 Outperform	3.23B	9.09	16.25%	4.00%	-9.10%	239.75%
CRDA	70 Outperform	3.78B	27.05	6.94%	3.50%	2.36%	-13.99%
ESNT	60 Neutral	288.40M	31.17	3.91%	2.33%	-4.71%	86.21%
ELM	55 Neutral	£932.65M	―	3.37%	1.38%	-11.78%	-92.61%
SYNT	45 Neutral	111.55M	-1.33	-6.65%	―	-4.41%	2.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Elementis Corporate Events

Elementis Executes Share Buyback, Reduces Share Count

Elementis plc, a company engaged in a share buyback program, announced the purchase and cancellation of 140,000 of its own ordinary shares at an average price of 162.7811 pence per share. This transaction reduces the total number of ordinary shares in issue to 577,812,240, with 286,469 shares held in treasury, impacting the total number of voting rights available to shareholders.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback, Adjusts Shareholder Voting Rights

Elementis plc, a company engaged in a share buyback program, announced the purchase and cancellation of 140,000 of its own ordinary shares at an average price of 163.6745 pence per share. This transaction reduces the total number of shares in issue to 577,952,240, potentially impacting shareholder voting rights and interest calculations under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Enhances Capital Structure with Share Buyback

Elementis plc has executed a share buyback, purchasing 140,000 of its own ordinary shares as part of its ongoing Share Buyback Programme. This move, conducted through Numis Securities Limited, is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value. The repurchased shares will be held in treasury, adjusting the total voting rights to 578,092,240, which stakeholders can use for regulatory compliance under the FCA’s rules.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback, Adjusts Voting Rights

Elementis plc has executed a share buyback as part of its ongoing program, purchasing 140,000 of its own ordinary shares. This move, conducted through Numis Securities Limited, will see the repurchased shares held in treasury, impacting the total voting rights and share calculations for stakeholders.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback Program

Elementis, a company in the specialty chemicals industry, has executed a share buyback program, purchasing 142,000 of its ordinary shares for cancellation at an average price of 165.3231 pence per share. This transaction, conducted through Numis Securities Limited, reduces the total number of shares in issue to 578,372,240, which may impact shareholder voting rights and interest calculations under regulatory guidelines.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback to Optimize Capital Structure

Elementis, a company involved in a share buyback program, announced the purchase and cancellation of 145,000 of its own ordinary shares at an average price of 165.1382 pence per share. This transaction is part of their ongoing efforts to manage share capital and enhance shareholder value. Following this buyback, the total number of voting rights in the company stands at 578,514,240, which stakeholders can use for regulatory reporting purposes.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback, Cancels 149,000 Shares

Elementis, a company engaged in a share buyback program, announced the purchase and cancellation of 149,000 of its own ordinary shares at an average price of 164.4187 pence per share. This transaction is part of its ongoing strategy to manage its share capital, which may impact the company’s market positioning by potentially increasing shareholder value and altering the number of voting rights.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback to Enhance Shareholder Value

Elementis, a company involved in a share buyback program, announced the repurchase of 150,000 of its ordinary shares at an average price of 163.6612 pence per share. This transaction, part of a previously announced buyback program, reduces the total number of shares in circulation and can potentially increase shareholder value by consolidating ownership.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback to Optimize Capital Structure

Elementis, a company involved in a share buyback program, has repurchased 150,000 of its own ordinary shares at an average price of 163.2335 pence per share. This transaction is part of its ongoing strategy to manage its capital structure and enhance shareholder value. Following this purchase, the total number of voting rights in the company stands at 578,958,240, which shareholders can use for determining changes in their interests under regulatory guidelines.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Elementis Executes Share Buyback, Cancels 150,000 Shares

Elementis, a company involved in a share buyback program, announced the purchase and cancellation of 150,000 of its own ordinary shares at an average price of 161.7230 pence per share. This transaction reduces the total number of shares in issue to 579,108,240, impacting the company’s share capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £200.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.