Is Element Solutions Stock a Good Investment?
Element Solutions Investment Advice | ESI |
- Examine Element Solutions' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Element Solutions' leadership team and their track record. Good management can help Element Solutions navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Element Solutions' business and its evolving consumer preferences.
- Compare Element Solutions' performance and market position to its competitors. Analyze how Element Solutions is positioned in terms of product offerings, innovation, and market share.
- Check if Element Solutions pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Element Solutions' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Element Solutions stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Element Solutions is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Element Solutions Stock
Researching Element Solutions' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 94.0% of the company shares are held by institutions such as insurance companies. The book value of Element Solutions was currently reported as 10.08. The company last dividend was issued on the 2nd of December 2024. Element Solutions had 2:1 split on the June 6, 2002.
To determine if Element Solutions is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Element Solutions' research are outlined below:
| Element Solutions is unlikely to experience financial distress in the next 2 years | |
| Element Solutions has a strong financial position based on the latest SEC filings | |
| Over 94.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from simplywall.st: Element Solutions Is Due To Pay A Dividend Of 0.08 |
Element Solutions Quarterly Good Will |
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Element Solutions uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Element Solutions. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Element Solutions' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Element Solutions' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Element Solutions' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-11-01 | 2018-09-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2016-05-09 | 2016-03-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2020-02-26 | 2019-12-31 | 0.2 | 0.22 | 0.02 | 10 | ||
2019-08-02 | 2019-06-30 | 0.19 | 0.21 | 0.02 | 10 | ||
2017-05-08 | 2017-03-31 | 0.14 | 0.16 | 0.02 | 14 | ||
2017-02-28 | 2016-12-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2016-11-04 | 2016-09-30 | 0.12 | 0.14 | 0.02 | 16 | ||
2014-08-06 | 2014-06-30 | 0.16 | 0.18 | 0.02 | 12 |
Know Element Solutions' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Element Solutions is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Element Solutions backward and forwards among themselves. Element Solutions' institutional investor refers to the entity that pools money to purchase Element Solutions' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Vaughan Nelson Scarbrgh & Mccullough Lp | 2024-06-30 | 5.1 M | Barrow Hanley Mewhinney & Strauss Llc | 2024-09-30 | 5.1 M | Silvercrest Asset Management Group Llc | 2024-06-30 | 5 M | Glenview Capital Management Llc | 2024-09-30 | 4.5 M | State Street Corp | 2024-06-30 | 4.1 M | Marshall Wace Asset Management Ltd | 2024-06-30 | 3.9 M | Geode Capital Management, Llc | 2024-09-30 | 3.5 M | Locust Wood Capital Advisers, Llc | 2024-09-30 | 2.8 M | Capital World Investors | 2024-09-30 | 2.6 M | Vanguard Group Inc | 2024-09-30 | 22 M | Fmr Inc | 2024-09-30 | 19.1 M |
Element Solutions' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 7.03 B.Market Cap |
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Element Solutions' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.07 | |
| Return On Capital Employed | 0.04 | 0.04 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.05 | 0.05 |
Determining Element Solutions' profitability involves analyzing its financial statements and using various financial metrics to determine if Element Solutions is a good buy. For example, gross profit margin measures Element Solutions' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Element Solutions' profitability and make more informed investment decisions.
Evaluate Element Solutions' management efficiency
Element Solutions has Return on Asset of 0.0417 % which means that on every $100 spent on assets, it made $0.0417 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1132 %, implying that it generated $0.1132 on every 100 dollars invested. Element Solutions' management efficiency ratios could be used to measure how well Element Solutions manages its routine affairs as well as how well it operates its assets and liabilities. As of now, Element Solutions' Return On Tangible Assets are increasing as compared to previous years. The Element Solutions' current Return On Assets is estimated to increase to 0.02, while Return On Capital Employed is projected to decrease to 0.04. As of now, Element Solutions' Intangible Assets are increasing as compared to previous years. The Element Solutions' current Net Tangible Assets is estimated to increase to about 1.8 B, while Non Currrent Assets Other are projected to decrease to under 109.3 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 9.71 | 11.57 | |
| Tangible Book Value Per Share | (3.61) | (3.79) | |
| Enterprise Value Over EBITDA | 16.78 | 11.87 | |
| Price Book Value Ratio | 2.40 | 1.37 | |
| Enterprise Value Multiple | 16.78 | 11.87 | |
| Price Fair Value | 2.40 | 1.37 | |
| Enterprise Value | 7.3 B | 6.2 B |
Leadership at Element Solutions emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Dividend Yield 0.011 | Forward Dividend Yield 0.011 | Forward Dividend Rate 0.32 | Beta 1.287 |
Basic technical analysis of Element Stock
As of the 24th of November, Element Solutions shows the Downside Deviation of 1.47, mean deviation of 1.29, and Coefficient Of Variation of 858.85. Element Solutions technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Element Solutions' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Element Solutions insiders, such as employees or executives, is commonly permitted as long as it does not rely on Element Solutions' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Element Solutions insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Element Solutions' Outstanding Corporate Bonds
Element Solutions issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Element Solutions uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Element bonds can be classified according to their maturity, which is the date when Element Solutions has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| ELEMENT SOLUTIONS INC Corp BondUS28618MAA45 | View | |
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Understand Element Solutions' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Element Solutions' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0953 | |||
| Market Risk Adjusted Performance | 0.2054 | |||
| Mean Deviation | 1.29 | |||
| Semi Deviation | 1.3 | |||
| Downside Deviation | 1.47 | |||
| Coefficient Of Variation | 858.85 | |||
| Standard Deviation | 1.92 | |||
| Variance | 3.7 | |||
| Information Ratio | 0.0484 | |||
| Jensen Alpha | 0.0817 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0635 | |||
| Treynor Ratio | 0.1954 | |||
| Maximum Drawdown | 11.06 | |||
| Value At Risk | (1.95) | |||
| Potential Upside | 3.77 | |||
| Downside Variance | 2.16 | |||
| Semi Variance | 1.68 | |||
| Expected Short fall | (1.55) | |||
| Skewness | 1.6 | |||
| Kurtosis | 6.66 |
| Risk Adjusted Performance | 0.0953 | |||
| Market Risk Adjusted Performance | 0.2054 | |||
| Mean Deviation | 1.29 | |||
| Semi Deviation | 1.3 | |||
| Downside Deviation | 1.47 | |||
| Coefficient Of Variation | 858.85 | |||
| Standard Deviation | 1.92 | |||
| Variance | 3.7 | |||
| Information Ratio | 0.0484 | |||
| Jensen Alpha | 0.0817 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0635 | |||
| Treynor Ratio | 0.1954 | |||
| Maximum Drawdown | 11.06 | |||
| Value At Risk | (1.95) | |||
| Potential Upside | 3.77 | |||
| Downside Variance | 2.16 | |||
| Semi Variance | 1.68 | |||
| Expected Short fall | (1.55) | |||
| Skewness | 1.6 | |||
| Kurtosis | 6.66 |
Consider Element Solutions' intraday indicators
Element Solutions intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Element Solutions stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Element Solutions Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 29th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 28th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 12th of July 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Element Stock media impact
Far too much social signal, news, headlines, and media speculation about Element Solutions that are available to investors today. That information is available publicly through Element media outlets and privately through word of mouth or via Element internal channels. However, regardless of the origin, that massive amount of Element data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Element Solutions news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Element Solutions relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Element Solutions' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Element Solutions alpha.
Element Solutions Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Element Solutions can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Element Solutions Corporate Directors
| Michael Goss | Non-Executive Lead Independent Director | Profile | |
| Ian Ashken | Non-Executive Independent Director | Profile | |
| E ONeal | Non-Executive Independent Director | Profile | |
| Christopher Fraser | Non-Executive Independent Director | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Element Solutions. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. For more detail on how to invest in Element Stock please use our How to Invest in Element Solutions guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Element Solutions. If investors know Element will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Element Solutions listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.155 | Dividend Share 0.32 | Earnings Share 1.09 | Revenue Per Share 9.949 | Quarterly Revenue Growth 0.076 |
The market value of Element Solutions is measured differently than its book value, which is the value of Element that is recorded on the company's balance sheet. Investors also form their own opinion of Element Solutions' value that differs from its market value or its book value, called intrinsic value, which is Element Solutions' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Element Solutions' market value can be influenced by many factors that don't directly affect Element Solutions' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Element Solutions' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Element Solutions is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Element Solutions' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.