📊 ESI Key Takeaways
Is ESI a Good Investment? Thesis Analysis
Element Solutions exhibits strong revenue growth and solid profitability margins, but concerning operational metrics reveal deteriorating cash generation despite positive net income. The company's massive revenue spike (4877.5% YoY) requires scrutiny for sustainability, while negative free cash flow and declining EPS suggest operational challenges beneath the surface.
Why Buy ESI? Key Strengths
- Exceptional revenue growth of 4877.5% YoY indicates significant business expansion or strategic acquisition
- Healthy gross margin of 42% and operating margin of 13.4% demonstrate pricing power and operational efficiency
- Strong liquidity position with 3.68x current ratio and 3.00x quick ratio provides financial flexibility
- Moderate leverage with 0.61x debt-to-equity ratio indicates manageable debt load
ESI Investment Risks to Consider
- Negative free cash flow of -$36.2M despite $190.8M net income signals potential working capital issues or unsustainable profitability
- Declining diluted EPS of -21.8% YoY contrasts sharply with rising net income, indicating significant shareholder dilution
- Weak interest coverage of 2.3x leaves limited cushion for debt service under economic stress
- Massive 4877.5% revenue growth is anomalous and difficult to validate as sustainable organic growth
- Low ROE of 7.1% and ROA of 3.7% suggest inefficient capital deployment despite growth narrative
Key Metrics to Watch
- Free cash flow trend and working capital management over next 2-3 quarters
- Sustainability and composition of 4877% revenue growth (organic vs. acquisition-driven)
- EPS trajectory and shareholder dilution dynamics
- Operating cash flow stability and cash conversion ratio
- Debt paydown progress and interest coverage improvement
ESI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.68x current ratio provides a solid financial cushion.
ESI Profitability Ratios
ESI vs Default Sector
How Element Solutions Inc compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ESI Overvalued or Undervalued?
Based on fundamental analysis, Element Solutions Inc has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ESI Balance Sheet & Liquidity
ESI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Element Solutions Inc's revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $0.49 reflects profitable operations.
ESI Growth Metrics (YoY)
ESI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $645.0M | $39.3M | $0.16 |
| Q2 2025 | $612.7M | $47.4M | $0.20 |
| Q1 2025 | $575.0M | N/A | $0.23 |
| Q3 2024 | $599.3M | -$31.8M | $-0.13 |
| Q2 2024 | $586.1M | $29.9M | $0.12 |
| Q1 2024 | $574.4M | $42.9M | $0.18 |
| Q3 2023 | $599.3M | -$31.8M | $-0.13 |
| Q2 2023 | $586.1M | $29.9M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ESI Capital Allocation
ESI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Element Solutions Inc (CIK: 0001590714)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ESI
What is the AI rating for ESI?
Element Solutions Inc (ESI) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESI's key strengths?
Claude: Exceptional revenue growth of 4877.5% YoY indicates significant business expansion or strategic acquisition. Healthy gross margin of 42% and operating margin of 13.4% demonstrate pricing power and operational efficiency.
What are the risks of investing in ESI?
Claude: Negative free cash flow of -$36.2M despite $190.8M net income signals potential working capital issues or unsustainable profitability. Declining diluted EPS of -21.8% YoY contrasts sharply with rising net income, indicating significant shareholder dilution.
What is ESI's revenue and growth?
Element Solutions Inc reported revenue of $2.6B.
Does ESI pay dividends?
Element Solutions Inc pays dividends, with $77.8M distributed to shareholders in the trailing twelve months.
Where can I find ESI SEC filings?
Official SEC filings for Element Solutions Inc (CIK: 0001590714) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ESI's EPS?
Element Solutions Inc has a diluted EPS of $0.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ESI a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Element Solutions Inc has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ESI stock overvalued or undervalued?
Valuation metrics for ESI: ROE of 7.1% (sector avg: 15%), net margin of 7.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ESI stock in 2026?
Our dual AI analysis gives Element Solutions Inc a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ESI's free cash flow?
Element Solutions Inc's operating cash flow is $26.0M, with capital expenditures of $62.2M. FCF margin is -1.4%.
How does ESI compare to other Default stocks?
Vs Default sector averages: Net margin 7.5% (avg: 12%), ROE 7.1% (avg: 15%), current ratio 3.68 (avg: 1.8).