# Element Solutions Inc. (ESI) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Basic Materials / Chemicals. Price $36.01, market value $8.8 billion.

## Valuation
- **P/E (trailing): 48.7×** (5-yr avg 30.6×, 3-yr avg 34.0×). Element Solutions Inc. trades at 48.7× trailing earnings, well above its own five-year average of 30.6×: investors are paying up relative to the company's past. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 17.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.8×**. Each dollar of revenue is priced at 2.8×.
- **Price / book: 3.1×**. The shares trade at 3.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 17.0×**. Enterprise value is 17.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 1.6%** (5-yr avg 4.9%). Free cash flow equals 1.6% of the market value, below its five-year average of 4.9%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.1%**. The inverse of the P/E: 2.1% of the price is earned each year.

## Profitability
- **Gross margin: 38.4%**. Element Solutions Inc. keeps 38.4% of revenue after the direct cost of what it sells.
- **Operating margin: 12.6%**. 12.6% of revenue is left after running the business.
- **Net margin: 7.5%**. 7.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 7.1%**. 7.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 8.5%**. Return on all capital, debt included, is 8.5%.
- **Return on assets: 3.5%**. Each dollar of assets produces 3.5% of profit.

## Growth
- **Revenue growth (1 yr): 3.8%** (3-yr 0.0%/yr, 5-yr 6.6%/yr). Revenue grew 3.8% over the last year, against 6.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -21.8%** (3-yr 1.3%/yr, 5-yr 21.4%/yr). Earnings per share fell 21.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -2.8%/yr**. Free cash flow has compounded at -2.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.61**. Debt is 0.61 times equity, moderate leverage.
- **Net debt / EBITDA: 1.8×**. It would take 1.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 3.64**. A Z-score of 3.64 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.89%** ($0.32 per share, trailing). Element Solutions Inc. yields 0.89%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 41%** (57% of free cash flow). 41% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 45.0%/yr** (1-yr 0.0%). The dividend has compounded at 45.0% a year over five years, doubling roughly every 2 years at that pace.

## Analyst view
- **Analyst consensus: buy** (8 analysts). 8 analysts cover Element Solutions Inc.; the consensus is buy, with an average price target of $46.88 (+30% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 41.1%** (YTD 44.7%, 3-mo -9.6%). The shares are up 41.1% over twelve months including dividends.
- **From 52-week high: -26.9%** (57.5% above the low). Trading 27% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 2.11** (volatility 45%). Beta of 2.11 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ESI · Page: https://foliofundamentals.com/stocks/esi

Not investment advice.