Element Solutions Inc (ESI) AI Stock Analysis

Element Solutions Inc operates globally as a specialty chemicals company through two primary segments: Electronics, and Industrial & Specialty. The Electronics segment researches, formulates, and sells specialty materials such as solder technologies, fluxes, cleaners, and liquid chemical processes used in electronics assembly, printed circuit boards, integrated circuit fabrication, and semiconductor packaging. The Industrial & Specialty segment offers chemical solutions that protect and enhance metal and plastic surfaces across diverse industries. It also produces consumable chemicals for flexible packaging and chemistries for offshore water-based hydraulic control fluids, serving aerospace, automotive, construction, and energy markets.

Element Solutions grew annual revenue from $2.40B in FY2021 to $2.55B in FY2025, recording a 5-year revenue CAGR of 6.6%. After revenue declined 8.5% in FY2023, it rebounded 5.3% in FY2024 and rose 3.8% in FY2025. Gross margin expanded from 40.0% in FY2021 to 42.0% in FY2025, while operating margin stood at 13.4%. Net income reached $190.8M in FY2025, down from $244.2M in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 56.4% year-over-year and quarterly earnings grew 61.9%. Operating cash flow totaled $289.8M in FY2025 with free cash flow of $227.6M.

As of June 30, 2026, Element Solutions held $189.6M in cash and short-term investments against total debt of $2.12B, resulting in net debt of $1.93B. Shareholders' equity was $2.81B, yielding a debt-to-equity ratio of 0.75 and a current ratio of 2.91. In FY2025, capital expenditures were $62.2M, while the company returned capital to shareholders through $25.0M in share buybacks and $77.8M in cash dividends paid.

At $35.05 per share, Element Solutions carries a market capitalization of $8.54B and an enterprise value of $10.57B. The stock trades at a trailing P/E of 47.4x and a forward P/E of 17.0x, compared to medians of 19.7x and 13.4x for its US-listed Basic Materials peers. Its EV-to-EBITDA ratio of 20.7x also stands above the peer median of 10.5x. Over the past year, the stock returned 39.4%, outperforming the S&P 500 return of 16.8%, though its 5-year return of 65.8% trailed the index return of 83.0%.

Element Solutions pays an annual forward dividend of $0.32 per share, representing a dividend yield of 0.91% and a payout ratio of 19.3%. The company distributes dividends on a quarterly schedule and has paid consecutive dividends for 7 years. Over the past five years, its annualized dividend growth rate was 45.0%. The most recent ex-dividend date was September 1, 2026.

Wall Street analysts hold 9 Strong Buy, 2 Buy, and 1 Hold ratings on Element Solutions, with no Sell recommendations. The mean price target is $47.08, which sits 34.3% above the last close of $35.05. For FY2026, consensus estimates project revenue of $3.73B and EPS of $1.82, reflecting 21.9% earnings growth. The company beat EPS estimates in all 4 of its last four quarters, with its next earnings release scheduled for October 21, 2026.

This page is an AI-written research summary of Element Solutions Inc (ESI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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