Element Solutions ESI
United StatesBasic Materials · Specialty ChemicalsUSD
46.55 USD (+25.2%)
11 analysts
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Element Solutions Inc. is a specialty chemicals company that develops and supplies innovative solutions for the electronics (such as semiconductors and circuit assembly) and industrial (such as coatings and finishes) markets, generating recurring revenue through high technical value products.
Key points
from its scores- ✓Good share-price trend8.6
- ✓Strong growth7.5
- ✕Demanding valuation3.1
- ✕Little competitive advantage3.6
- !Risks to watch5.0
AI analysis
bottom line, main risk, context and newsStrong growth and positive momentum (8.56) offset high debt and low cash conversion, but valuation is not a clear discount.
Element Solutions shows exceptional growth (revenues +56.4%, earnings +61.9%) that justifies its forward P/E of 17.55, but its financial health is only acceptable (ND/EBITDA 3.42) and quality is moderate (ROE 6.54%, ROIC 7.56%), with very weak free cash flow conversion (9.01%).
The main risk is the high net debt (ND/EBITDA 3.42) combined with very low free cash flow conversion (9.01%), which limits financial flexibility if growth slows or rates keep rising.
Context and risks
Element Solutions has no material exposure to current macro factors: its specialty chemicals business for electronics and industrials does not depend on energy commodities or critical shipping routes, and its debt, although high (ND/EBITDA 3.42), is mostly USD-denominated, so the rise in long-term US rates is already reflected in its valuation and does not add specific additional risk.
Is Element Solutions stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 129% above the Basic Materials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 50.2 | 19.2 | +162% |
| EV / EBITDA | 19.5 | 10.0 | +95% |
| Price / book | 3.2 | 2.3 | +42% |
| Price / sales | 2.9 | 2.2 | +31% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.1 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 46.55 USD, +25.2% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.6 (sector 5.1), Growth 7.5 (sector 6.8).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- P/E
- 50.2
- Forward P/E
- 17.5
- EV / EBITDA
- 19.5
- Price / book
- 3.2
- Price / sales
- 2.9
- PEG
- 0.50
- Market cap
- 9.1B USD
- Enterprise value
- 11.0B USD
Profitability
- ROE
- 6.5%
- ROA
- 4.6%
- ROIC (approx.)
- 7.6%
- Gross margin
- 38.6%
- Operating margin
- 11.8%
- Net margin
- 5.7%
- Free cash flow
- 50.8M USD
- FCF yield
- 0.6%
- Cash conversion
- 9%
Solvency
- Total debt
- 2.1B USD
- Net debt
- 1.9B USD
- Cash
- 193.1M USD
- EBITDA
- 564.0M USD
- Net debt / EBITDA
- 3.42
- Debt / equity
- 74.98
- Current ratio
- 2.91
- Quick ratio
- 1.73
Growth
- Revenue growth
- +56.4%
- Earnings growth
- +61.9%
- EPS (TTM)
- 0.74 USD
- EPS (forward)
- 2.12 USD
Dividend
- Dividend yield
- 0.9%
- Payout
- 43.2%
Risk and market
- Beta
- 1.26
- Analyst consensus
- Strong buy (11)
- Target price
- 46.55 USD
- 52-week range
- 22.86 – 49.25
Recent news
All ESI news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Element Solutions
Is Element Solutions stock cheap or expensive?
On P/E and EV / EBITDA, it trades 129% above the Basic Materials median on average. Valuation score: 3.1 out of 10 (median for Basic Materials: 5.8). Average analyst target: 46.55 USD, +25.2% versus the price. This is not investment advice.
What score does Element Solutions get on MeridIAn Screener?
It scores 4.9 out of 10, rank 1,743 of 2,130 (better than 17% of the companies analysed). Its strongest category is Momentum (8.6) and its weakest, Valuation (3.1). Analysis of 08/10/2026.
What is Element Solutions's P/E ratio?
Its P/E is 50.2: the share price equals 50.2 times earnings per share over the last 12 months. The Basic Materials median is 19.2. Based on the earnings analysts expect, the forward P/E is 17.5.
How much is Element Solutions worth on the stock market?
Its market capitalisation is 9.1B USD and its enterprise value, debt included, is 11.0B USD.
How much debt does Element Solutions have?
Its net debt (debt minus cash) is 1.9B USD. That is 3.42 times its EBITDA; the Basic Materials median is 1.41.
Does Element Solutions pay a dividend?
Yes: its dividend yield is 0.86% and it pays out 43% of its earnings.
How has Element Solutions stock performed over the last year?
It has risen 56.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 22.86 and 49.25 USD. Past performance does not guarantee future results.
What do analysts think of Element Solutions?
11 analysts cover it; their average recommendation is “Strong buy” and their average target is 46.55 USD (+25.2% versus the price). It is an estimate, not market data.