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Elementis
(LSE:ELM)
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Rating:60Neutral
Price Target:
183.00 p
▲(5.05% Upside)
Action:Reiterated
Date:08/29/26
The score is driven primarily by stabilizing fundamentals—materially improved leverage and continued positive free cash flow—balanced against ongoing net losses and recent revenue decline. Technicals are mixed with near-term softness but longer-term moving-average support, and valuation is moderate with only a modest dividend yield.
Positive Factors
Material deleveraging strengthens financial resilience
The sharp reduction in debt lowers interest and refinancing risk while preserving flexibility to fund operations, product development, and customer support. A sizable equity base provides additional resilience if end-market demand remains uneven.
Negative Factors
Revenue contraction signals weak demand or volume pressure
Sustained revenue contraction can reduce operating leverage and limit the company’s ability to absorb fixed costs, particularly if customers continue reducing formulations demand. Recovery depends on volumes, mix, and pricing execution across key markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Material deleveraging strengthens financial resilience
The sharp reduction in debt lowers interest and refinancing risk while preserving flexibility to fund operations, product development, and customer support. A sizable equity base provides additional resilience if end-market demand remains uneven.
Read all positive factors
Elementis (ELM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.00B
Dividend Yield1.88%
Average Volume (3M)1.42M
Price to Earnings (P/E)18.5
Beta (1Y)1.19
Revenue Growth-11.73%
EPS GrowthN/A
CountryUK
Employees989
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.13
Shares Outstanding568,414,600
10 Day Avg. Volume1,234,296
30 Day Avg. Volume1,415,150
Financial Highlights & Ratios
PEG Ratio17.46
Price to Book (P/B)2.02
Price to Sales (P/S)2.18
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
£209.00Price Target Upside19.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.15
Revenue Forecast (FY)£605.94M
Elementis Business Overview & Revenue Model
Company Description
Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Coatings and Personal Care. The Coatings segment offers production of rheological modifi...
How the Company Makes Money
Elementis makes money primarily by selling specialty chemical additives and ingredients to business customers (B2B) for use in their formulated products. Revenue is generated through (1) product sales into key end markets such as coatings—where rh...
Elementis Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2027
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 606.58M | 597.50M | 738.30M | 713.40M | 736.40M | 709.40M |
| Gross Profit | 294.64M | 280.10M | 338.00M | 284.30M | 298.90M | 289.00M |
| EBITDA | 163.94M | 140.10M | 27.20M | 115.60M | 23.70M | 87.30M |
| Net Income | 73.75M | 62.30M | -47.80M | 26.50M | -51.10M | 2.50M |
Balance Sheet | ||||||
| Total Assets | 1.14B | 1.12B | 1.31B | 1.51B | 1.63B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 86.65M | 54.62M | 59.90M | 65.80M | 54.90M | 84.60M |
| Total Debt | 264.50M | 256.69M | 253.90M | 300.90M | 453.70M | 522.70M |
| Total Liabilities | 472.30M | 470.87M | 551.40M | 664.10M | 843.10M | 935.60M |
| Stockholders Equity | 662.70M | 644.13M | 757.00M | 847.30M | 783.90M | 901.00M |
Cash Flow | ||||||
| Free Cash Flow | 38.04M | 54.01M | 62.20M | 38.60M | 29.90M | 13.60M |
| Operating Cash Flow | 64.56M | 76.78M | 100.00M | 76.80M | 77.00M | 66.70M |
| Investing Cash Flow | -22.50M | -8.47M | -37.50M | 101.10M | -46.90M | -65.00M |
| Financing Cash Flow | -17.09M | -84.23M | -59.80M | -168.00M | -57.80M | -25.30M |
Elementis Technical Analysis
Positive
174.20
Price Trends
170.22
Positive
160.10
Positive
159.42
Positive
Market Momentum
0.92
Positive
53.58
Neutral
40.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ELM, the sentiment is Positive. The current price of 174.2 is below the 20-day moving average (MA) of 178.73, above the 50-day MA of 170.22, and above the 200-day MA of 159.42, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 40.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | £754.35M | -37.65 | -4.95% | 3.12% | -1.24% | -166.15% | |
62 Neutral | £4.60B | 58.27 | 3.65% | 3.40% | 3.36% | -43.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £1.00B | 18.45 | 11.29% | 1.88% | -11.73% | ― | |
59 Neutral | £2.89B | -40.21 | -4.66% | 4.65% | 7.70% | -128.58% | |
53 Neutral | £178.70M | -1.49 | -13.27% | 9.77% | -4.98% | -43.98% |
* Basic Materials Sector Average
GB:ELM
Elementis
176.80
14.65
9.04%
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Elementis Corporate Events
Stock BuybackRegulatory Filings and Compliance
Elementis Updates Market on August Share Buyback Activity and Voting Rights
Positive
Aug 24, 2026
Elementis has continued to execute its previously announced share buyback programme, repurchasing ordinary shares between 17 and 21 August 2026 across multiple trading venues including the London Stock Exchange and several European platforms. The ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Elementis Tightens Capital Structure With Latest Share Buybacks
Positive
Aug 17, 2026
Elementis has continued to execute its previously announced share buyback programme, purchasing 430,174 ordinary shares between 10 and 14 August 2026 across the London Stock Exchange and several European trading venues. All of the shares acquired ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Elementis Updates Market on August Share Buyback Activity and Voting Rights
Neutral
Aug 10, 2026
Elementis plc has continued to execute its share buyback programme, repurchasing 418,189 ordinary shares between 3 and 7 August 2026 across multiple trading venues including the London Stock Exchange and various European platforms. All of these sh...
Stock BuybackRegulatory Filings and Compliance
Elementis Reduces Share Count with Ongoing Buyback Programme
Positive
Aug 3, 2026
Elementis has continued executing its previously announced share buyback programme, repurchasing ordinary shares of 5p each between 27 and 31 July 2026 across the London Stock Exchange and various European trading venues. The purchases, executed v...
Executive/Board ChangesRegulatory Filings and Compliance
Elementis Discloses Director’s New Role at Aquila European Renewables
Neutral
Jul 30, 2026
Elementis plc has disclosed a new external appointment involving one of its board members, underscoring the governance transparency required of U.K.-listed companies. The announcement concerns additional responsibilities taken on by a director rat...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Elementis lifts profits and margins as Elevate strategy gains traction
Positive
Jul 30, 2026
Elementis reported first-half 2026 revenue of $318.2m, up 4.7% on an organic constant-currency basis, with adjusted operating profit rising 16.4% to $73.2m and margins improving to 23.0%. Diluted adjusted EPS climbed 28.8%, supported by a share bu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Elementis Reduces Share Capital Through Ongoing Buyback Programme
Positive
Jul 27, 2026
Elementis plc has continued execution of its previously announced share buyback programme, repurchasing ordinary shares of 5 pence each on multiple trading venues between 20 July and 24 July 2026. The purchases were carried out via Rothschild Co ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Elementis reduces share count as buyback programme progresses
Positive
Jul 20, 2026
Elementis plc has continued executing its previously announced share buyback programme, repurchasing ordinary shares across the London Stock Exchange and several European trading venues between 13 and 17 July 2026. The trades were carried out via ...
Stock Buyback
Elementis Reduces Share Count with Latest Tranche of Buybacks
Positive
Jul 13, 2026
Elementis has continued to execute on its previously announced share buyback programme, repurchasing tranches of its 5p ordinary shares between 6 and 10 July 2026 across multiple trading venues, including the London Stock Exchange and various mult...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Elementis trims share capital with ongoing buyback
Positive
Jul 6, 2026
Elementis has continued to execute its previously announced share buyback programme, repurchasing ordinary shares via multiple trading venues between 29 June and 3 July 2026 at prices around 155–159 pence. The trades were conducted through R...
Financial DisclosuresRegulatory Filings and Compliance
Elementis Corrects Share Capital and Voting Rights Disclosure
Positive
Jul 1, 2026
Elementis plc has corrected a previous disclosure regarding its share capital and total voting rights, updating investors on the accurate figures as of 30 June 2026. The company now reports an issued share capital of 570,998,879 ordinary shares, w...
Stock BuybackRegulatory Filings and Compliance
Elementis updates share count after latest buyback tranche
Positive
Jun 29, 2026
Elementis plc has continued to execute its previously announced share buyback programme, repurchasing ordinary shares of 5p each on multiple trading venues between 22 and 26 June 2026 via Rothschild Co. Following settlement and cancellation of th...
Business Operations and StrategyStock Buyback
Elementis reduces share count with latest tranche of buybacks
Positive
Jun 22, 2026
Elementis has continued executing its previously announced share buyback programme, repurchasing 488,898 ordinary shares between 15 and 19 June 2026 across multiple trading venues at an average price around 155–157 pence. Of these shares, 29...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Elementis Reduces Share Count with Latest Buyback Tranche
Positive
Jun 22, 2026
Elementis has continued executing its previously announced share buyback programme, repurchasing 488,898 ordinary shares between 15 and 19 June 2026 across multiple trading venues at weighted average prices around 155–157 pence. Of these sha...
Stock BuybackRegulatory Filings and Compliance
Elementis Tightens Share Capital Base With Ongoing Buyback Programme
Positive
Jun 15, 2026
Elementis plc has continued to execute its recently announced share buyback programme, repurchasing tranches of its 5p ordinary shares between 8 and 12 June 2026 across the London Stock Exchange and multiple electronic trading platforms at weighte...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Elementis cuts share count as buyback programme gathers pace
Positive
Jun 8, 2026
Elementis has begun executing its recently announced share buyback programme, repurchasing and cancelling ordinary shares across multiple trading venues between 3 and 5 June 2026. The transactions, carried out via Rothschild Co, reduce the compan...
Business Operations and StrategyStock Buyback
Elementis launches £25m share buyback to cut share capital
Positive
Jun 3, 2026
Elementis has launched a share buyback programme to repurchase up to approximately £25m of its ordinary shares by no later than 28 February 2027 under an existing shareholder authority. The majority of the repurchased shares will be cancelled...
Business Operations and StrategyStock BuybackM&A Transactions
Elementis completes pharma divestment and unveils $35m share buyback
Positive
Jun 2, 2026
Elementis has completed the sale of its pharmaceutical manufacturing business to Associated British Foods for an enterprise value of €34.3m, yielding net cash proceeds of about €30m. The disposal advances its strategy to become a pure-...
Regulatory Filings and Compliance
Elementis Updates Share Capital and Voting Rights for Transparency Compliance
Neutral
Jun 1, 2026
Elementis plc has confirmed that as of 31 May 2026 it has an issued and voting share capital of 572,636,011 ordinary shares of 5 pence each, of which 22,917 are held in treasury and therefore do not carry voting rights. The disclosed share count p...
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.