Element Solutions Inc [NYSE:ESI]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Element Solutions Inc [ESI] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give ESI an Outperform rating. Its stock price has been found in the range of 9.26 to 13.54. This is compared to its latest closing price of $10.62.
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 2.44. This is compared to 1 month ago, when its average rating was 2.44.
For the quarter ending in Mar-19 Element Solutions Inc [ESI] generated $0.46 billion in sales. That’s 2.55% lower than the average estimate of $0.47 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.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Thu 1 Aug (In 73 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 +12.99 and its Gross Margin at +42.72.
This company’s Return on Total Capital is 3.21, and its Return on Invested Capital has reached 2.40%. Its Return on Equity is -3.24, and its Return on Assets is -0.80. 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 254.88. Similarly, its Total Debt to Total Capital is 71.82, while its Total Debt to Total Assets stands at 57.18. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 253.68, and its Long-Term Debt to Total Capital is 71.48. 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 19.14 and its Total Debt to EBITDA Value is 13.06. The Enterprise Value to Sales for this firm is now 3.22, and its Total Debt to Enterprise Value stands at 0.66. Element Solutions Inc [ESI] has a Price to Book Ratio of 1.42.
Shifting the focus to workforce efficiency, Element Solutions Inc [ESI] earns $440,674 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 2.55 and its Total Asset Turnover is 0.20. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.01 and its Current Ratio is 2.17. 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.
Element Solutions Inc [ESI] has 269.68M shares outstanding, amounting to a total market cap of $2.86B. Its stock price has been found in the range of 9.26 to 13.54. At its current price, it has moved by -23.08% from its 52-week high, and it has moved 12.47% from its 52-week low.
This stock’s Beta value is currently 2.17, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 40.86. 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.