Element Solutions Inc [NYSE:ESI]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Element Solutions Inc [ESI], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give ESI an Outperform rating. Its stock price has been found in the range of 9.23 to 23.60. This is compared to its latest closing price of $11.38.
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 2.29. This is compared to 1 month ago, when its average rating was 2.22.
For the quarter ending in Sep-18 Element Solutions Inc [ESI] generated $0.49 billion in sales. That’s 3.20% lower than the average estimate of $0.5 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 26 Feb (In 14 Days).
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 +10.91 and its Gross Margin at +42.11, this company’s Net Margin is now -12.60%. 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 5.00, and its Return on Invested Capital has reached 2.00%. Its Return on Equity is -10.81, and its Return on Assets is -2.92. 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 199.76. Similarly, its Total Debt to Total Capital is 66.64, while its Total Debt to Total Assets stands at 53.45. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 198.34, and its Long-Term Debt to Total Capital is 66.17. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 10.88 and its Total Debt to EBITDA Value is 7.15. The Enterprise Value to Sales for this firm is now 2.35, and its Total Debt to Enterprise Value stands at 0.69. Element Solutions Inc [ESI] has a Price to Book Ratio of 1.04, a Price to Cash Flow Ratio of 15.59.
Shifting the focus to workforce efficiency, Element Solutions Inc [ESI] earns $481,006 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.42 and its Total Asset Turnover is 0.37. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.69 and its Current Ratio is 2.14. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Element Solutions Inc [ESI] has 285.09M shares outstanding, amounting to a total market cap of $3.24B. Its stock price has been found in the range of 9.09 to 13.54. At its current price, it has moved by -15.29% from its 52-week high, and it has moved 26.18% from its 52-week low.
This stock’s Beta value is currently 2.35, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.28. 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.