Element Solutions Inc (ESI)
Basic Materials · NYQ · US
Fundamentals
Valuation and ratings
Element Solutions Inc trades at USD37.63, which is 58% above the USD15.84 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 45 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 63.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Element Solutions Inc
Element Solutions Inc operates as a specialty chemicals technology company in the United States, China, and internationally. The company operates in two segments: MacDermid Alpha Electronics Solutions and Element Specialties. Its MacDermid Alpha Electronics Solutions segment provides assembly solutions, including surface mount technologies, pastes fluxes, thermal management materials, coatings, and other attachment materials; circuitry solutions, such as circuit board metallization, circuit formation products, electronic materials, surface finishes, and film and smart surface solutions; and semiconductor solutions, which includes semiconductor assembly and wafer level packaging materials. This segment serves the mobile communications, computers, automobiles, and aerospace equipment industries. The Element Specialties segment offers industrial solutions, including electroless nickel, plating products, pre-treatment and cleaning solutions, functional conversion coatings, and water treatment; and energy solutions, which includes offshore fluids. This segment serves the aerospace, automotive, construction, consumer electronics, and oil and gas production end markets. The company was formerly known as Platform Specialty Products Corporation and changed its name to Element Solutions Inc in January 2019. Element Solutions Inc was founded in 1785 and is based in Miami Beach, Florida.
ESI passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Steve Cohen, Point72 Asset Management, L.P.$69.49M · 0.1% of book
- Larry Robbins, GLENVIEW CAPITAL MANAGEMENT, LLC$55.60M · 1.4% of book
- Joel Greenblatt, Gotham Asset Management, LLC$44.47M · 0.1% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$28.10M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$17.57M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Element Solutions Inc (ESI) undervalued?
Against our discounted cash flow estimate of USD15.84, ESI at USD37.63 is 58% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ESI?
5 of the institutions we track reported a position in ESI in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ESI's P/E ratio?
ESI trades at 63.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for ESI, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.