Element Solutions Inc [ESI] – Is there any real value to ESI Stock or is it vaporware?

Element Solutions Inc [ESI] took an upward turn with a change of 8.00%, trading at the price of $10.67 during the trading session on Wednesday. The price movement in correlation with percentage of the mentioned increase can allow a valuable insight to investors. During the last trading session 2.16 million shares changed hands being bought and sold, while Element Solutions Inc shares have an average trading volume of 2.51M shares for that time period. ESI monthly volatility recorded 5.49%, in the meanwhile having share price volatility for the week set at 3.86%. PS value for ESI stocks is 1.33 with PB recorded at 1.12.

Element Solutions Inc [NYSE:ESI]: Analyst Rating and Earnings

Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Element Solutions Inc [ESI], the latest average analyst recommendation we can see is from the quarter closing in lastQuarterMonth. On average, stock market experts give ESI an Overweight rating. The average 12-month price forecast for this stock is $10.59, with the high estimate being $13.00, the low estimate being $10.00 and the median estimate amounting to $11.00. This is compared to its latest closing price of $9.88.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Element Solutions Inc [ESI] is sitting at 4.40. This is compared to 1 month ago, when its average rating was 4.00.

Pay attention for this company’s financial results, of which the next release is scheduled to happen on 04/30/2020.

Fundamental Analysis of Element Solutions Inc [ESI]

Now let’s turn to look at profitability: with a current Operating Margin for Element Solutions Inc [ESI] sitting at 13.60% and its Gross Margin at 42.90%, this company’s Net Margin is now 5.00. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 4.63, and its Return on Invested Capital has reached 1.40. Its Return on Equity is 4.20%, and its Return on Assets is 2.10%. These metrics suggest that this Element Solutions Inc does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Element Solutions Inc [ESI] has generated a Total Debt to Total Equity ratio of 71.30. Similarly, its Total Debt to Total Capital is 41.62, while its Total Debt to Total Assets stands at 36.62. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 70.22, and its Long-Term Debt to Total Capital is 40.99.

What about valuation? This company’s Enterprise Value to EBITDA is 9.39 and its Total Debt to EBITDA Value is 3.64. The Enterprise Value to Sales for this firm is now 2.14, and its Total Debt to Enterprise Value stands at 0.36. Element Solutions Inc [ESI] has a Price to Book Ratio of 1.32, a Price to Cash Flow Ratio of 23.30 and P/E Ratio of 30.06. These metrics suggest that this publicly-traded organization will not likely result in investment gains.

Element Solutions Inc [ESI] has 246.32M shares outstanding, amounting to a total market cap of 2.43B. Its stock price has been found in the range of 5.35 to 12.74. At its current price, it has moved down by -16.25% from its 52-week high, and it has moved up 99.44% from its 52-week low.

This stock’s Beta value is currently 1.79, which indicates that it is 3.86% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 67.46. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Element Solutions Inc [ESI] a Reliable Buy?

Element Solutions Inc [ESI] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.

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Author: Kevin Freeman