Last Updated: 11 Nov 2024
Executive Summary
Element Solutions Inc. (ESI) is a leading producer and seller of specialty chemicals, with a market capitalization of $6.92 billion. The company's financial performance has been strong, with revenue growth of 0.076% year-over-year and earnings growth of 2.155%. ESI's valuation metrics are relatively attractive, with a trailing PE ratio of 26.21 and a forward PE ratio of 17.51. The stock is currently trading at $28.57, below its 52-week high of $29.16.
Company Overview
Element Solutions Inc. is headquartered in Fort Lauderdale, Florida and operates in the United States, China, and internationally. The company's products are used in a variety of industries, including electronics, automotive, and aerospace. ESI has a strong track record of innovation and has developed a number of proprietary technologies.
Fundamental Analysis
ESI's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 4.2% over the past five years, and its earnings per share have grown at a CAGR of 8.5%. ESI's profit margin is 11.1%, and its return on equity is 11.3%.
ESI's balance sheet is also strong. The company has a low level of debt and a high level of cash. ESI's current ratio is 1.5, and its debt-to-equity ratio is 0.2.
Technical Analysis
ESI's stock price has been trending sideways in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 45, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
ESI's stock price is likely to remain range-bound in the short term. The stock is facing resistance at its 50-day and 200-day moving averages. However, the stock's RSI is indicating that the stock is not overbought, which suggests that there is potential for upside.
Long Term Outlook
ESI's long-term outlook is positive. The company's strong financial performance and its position in the growing specialty chemicals market are likely to drive long-term growth. ESI's stock price is currently trading at a discount to its intrinsic value, which suggests that there is potential for upside.
Analyst Recommendations
The majority of analysts have a buy rating on ESI's stock. The average analyst target price is $31.86, which represents a potential upside of 11.5% from the current price.
