Upside case
Bull case
$26-43.9%
The bull case prices ESI at 15x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewBuyUpdated Jun 18, 2026
Element Solutions Inc (ESI) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
35
analysts
18 bullish · 6 bearish · 35 covering ESI
Strong Buy
0
Buy
18
Hold
11
Sell
6
Strong Sell
0
Consensus Target
$42
-7.7% vs today
Scenario Range
$12 – $26
Model bear to bull value window
Coverage
35
Published analyst ratings
Valuation Context
26.0x
Forward P/E · Market cap $11.2B
ESI price targets
Three scenarios for where ESI stock could go
Current
~$46
Confidence
43 / 100
Updated
Jun 18, 2026
Where we are now
Current · $46
Bear
$12
Base
$20
Bull
$26
Market caseClosest to today
Base case
$20-57.5%
At 11x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$12-73.2%
If investor confidence fades or macro conditions deteriorate, a 19x multiple contraction could push ESI down roughly 73% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Element Solutions Inc
ESI · NYSEBasic MaterialsChemicals - SpecialtyDecember year-end
Element Solutions is a specialty chemicals company that formulates and sells advanced chemical products for electronics manufacturing and industrial applications. It generates revenue primarily from its Electronics segment — supplying materials for printed circuit boards and semiconductor packaging — and its Industrial & Specialty segment, which provides surface treatment and printing consumables. The company's competitive advantage lies in its deep technical expertise and proprietary formulations that are critical to complex manufacturing processes across electronics, aerospace, and automotive industries.
Market Cap
$11.2B
Revenue TTM
$2.8B
Net Income TTM
$149M
Net Margin
5.3%
ESI Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
58%Exceptional
vs consensus estimates
Avg EPS Surprise
+3.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.37/$0.36
Revenue
$625M/$639M
Q4 2025
EPS
$0.41/$0.39
Revenue
$656M/$632M
Q1 2026
EPS
$0.37/$0.36
Revenue
$676M/$632M
Q2 2026
EPS
$0.41/$0.38
Revenue
$840M/$711M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.37/$0.36 | +2.8% | $625M/$639M | -2.1% |
| Q4 2025 | $0.41/$0.39 | +5.1% | $656M/$632M | +3.7% |
| Q1 2026 | $0.37/$0.36 | +2.8% | $676M/$632M | +7.0% |
| Q2 2026 | $0.41/$0.38 | +7.9% | $840M/$711M | +18.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.0B
+8.6% YoY
FY2
$3.3B
+8.6% YoY
EPS Outlook
FY1
$0.93
+51.7% YoY
FY2
$1.09
+17.4% YoY
Trailing FCF (TTM)$121M
FCF Margin: 4.3%
Next Earnings
July 29, 2026
Expected EPS
$0.43
Expected Revenue
$853M
ESI beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
ESI Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $1.8B
Product Mix
Latest annual revenue by segment or product family
Electronics Segment
100.0%
+14.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Other Countries
57.6%
+4.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Electronics Segment is the largest disclosed segment at 100.0% of FY 2025 revenue, up 14.4% YoY.
Other Countries is the largest reported region at 57.6%, up 4.1% YoY.
ESI Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $25 — implies -46.5% from today's price.
Premium to Fair Value
46.5%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ESI
58.2x
vs
S&P 500
24.4x
+138% premium
vs Basic Materials Trailing P/E
ESI
58.2x
vs
Basic Materials
23.6x
+147% premium
vs ESI 5Y Avg P/E
Today
58.2x
vs
5Y Average
31.6x
+84% premium
Forward PE
26.0x
S&P 500
18.8x
+38%
Basic Materials
14.9x
+75%
5Y Avg
—
—
Trailing PE
58.2x
S&P 500
24.4x
+138%
Basic Materials
23.6x
+147%
5Y Avg
31.6x
+84%
PEG Ratio
2.72x
S&P 500
1.66x
+64%
Basic Materials
1.23x
+122%
5Y Avg
—
—
EV/EBITDA
24.7x
S&P 500
15.2x
+63%
Basic Materials
11.0x
+125%
5Y Avg
16.1x
+54%
Price/FCF
49.2x
S&P 500
20.7x
+138%
Basic Materials
29.0x
+70%
5Y Avg
21.4x
+130%
Price/Sales
4.4x
S&P 500
3.1x
+42%
Basic Materials
1.9x
+133%
5Y Avg
2.3x
+90%
Dividend Yield
0.70%
S&P 500
1.91%
-64%
Basic Materials
1.41%
-50%
5Y Avg
1.34%
-48%
| Metric | ESI | S&P 500 | Basic Materials | 5Y Avg ESI |
|---|---|---|---|---|
| Forward PE | 26.0x | 18.8x+38% | 14.9x+75% | — |
| Trailing PE | 58.2x | 24.4x+138% | 23.6x+147% | 31.6x+84% |
| PEG Ratio | 2.72x | 1.66x+64% | 1.23x+122% | — |
| EV/EBITDA | 24.7x | 15.2x+63% | 11.0x+125% | 16.1x+54% |
| Price/FCF | 49.2x | 20.7x+138% | 29.0x+70% | 21.4x+130% |
| Price/Sales | 4.4x | 3.1x+42% | 1.9x+133% | 2.3x+90% |
| Dividend Yield | 0.70% | 1.91% | 1.41% | 1.34% |
ESI trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolESI Financial Health
Verdict
Adequate
Key financial metrics for ESI are shown below.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$2.8B
Revenue Growth
TTM vs prior year
+13.0%
Gross Margin
Gross profit as a share of revenue
40.8%
Operating Margin
Operating income divided by revenue
13.4%
Net Margin
Net income divided by revenue
5.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.61
Free Cash Flow (TTM)
Cash generation after capex
$121M
FCF Margin
FCF as share of revenue — the primary cash quality signal
4.3%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
6.7%
ROA
Return on assets, trailing twelve months
2.8%
Cash & Equivalents
Liquid assets on the balance sheet
$627M
Net Debt
Total debt minus cash
$999M
Debt Serviceability
Net debt as a multiple of annual free cash flow
8.3× FCF
~8.3 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
5.5%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.9%
Dividend
0.7%
Buyback
0.2%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$25M
Dividend / Share
Annualized trailing dividend per share
$0.32
Payout Ratio
Share of earnings distributed as dividends
40.8%
Shares Outstanding
Declining as buybacks retire shares
244M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageESI Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Profitability decline
Net income and diluted EPS decreased significantly despite rising sales, indicating margin pressures or cost inefficiencies.
Medium
Earnings uncertainty
Projected EPS for the next fiscal year carries a low confidence score (55/100), reflecting uncertainty in revenue and margin trends.
Lower
Segment concentration
Strong performance in the Electronics segment may expose the company to cyclical risks if growth slows in this area.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ESI Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Strong revenue growth
Element Solutions Inc reported first-quarter 2026 sales rising to US$840 million from US$593.7 million a year earlier, indicating robust top-line growth.
Electronics segment outperformance
The company experienced double-digit organic growth in the Electronics segment, contributing significantly to overall performance.
Secure collaboration leadership
Element is a global leader in end-to-end encrypted messaging and secure collaboration, trusted by over 50,000 customers for safety and reliability.
Hyperlocal strategic advantage
Management highlighted the hyperlocal model as a key structural advantage for risk-adjusted returns during the 2026 Investor Day.
Decentralized hosting flexibility
Element offers decentralized, sovereign self-hosting options or through hosting services, providing flexibility and security for users.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ESI Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$45.97
52W Range Position
97%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$21.28
+116.0% from the low
52-Week High
$46.72
-1.6% from the high
1 Month
+15.27%
3 Month
+45.38%
YTD
+77.2%
1 Year
+115.1%
3Y CAGR
+34.5%
5Y CAGR
+14.8%
10Y CAGR
+17.8%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ESI vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
26.0x
vs 21.4x median
+21% above peer median
Revenue Growth
+8.6%
vs +3.9% median
+121% above peer median
Net Margin
5.3%
vs 6.4% median
-17% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ESI ESI Element Solutions Inc | $11.2B | 26.0x | +8.6% | 5.3% | Buy | -7.7% |
CMC CMC Commercial Metals Company | $8.0B | 11.3x | +3.8% | 5.5% | Buy | +13.6% |
HWK HWKN Hawkins, Inc. | $3.4B | 41.0x | +8.1% | 7.5% | Buy | — |
KWR KWR Quaker Chemical Corporation | $2.6B | 21.4x | +3.9% | 0.2% | Buy | +17.7% |
BCP BCPC Balchem Corporation | $5.3B | 31.7x | +8.8% | 15.0% | Buy | +5.8% |
IOS IOSP Innospec Inc. | $2.0B | 17.1x | +1.4% | 6.4% | Hold | +39.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
ESI Dividend and Capital Return
ESI returns 0.9% total yield, led by a 0.70% dividend.
Dividend SustainableFCF Adequate
Total Shareholder Yield
0.9%
Dividend + buyback return per year
Buyback Yield
0.2%
Dividend Yield
0.70%
Payout Ratio
40.8%
How ESI Splits Its Return
Div 0.70%
Buyback 0.2%
Dividend 0.70%Buybacks 0.2%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.32
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
0.0%
5Y Div CAGR
45.0%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$25M
Estimated Shares Retired
543.8K
Approx. Share Reduction
0.2%
Shares Outstanding
Current diluted share count from the screening snapshot
244M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.16 | — | — | — |
| 2025 | $0.32 | 0.0% | 0.4% | 1.7% |
| 2024 | $0.32 | 0.0% | 0.0% | 1.3% |
| 2023 | $0.32 | 0.0% | 0.0% | 1.4% |
| 2022 | $0.32 | +28.0% | 3.4% | 5.1% |
FAQ
7 questionsESI Investor Questions
Common questions answered from live analyst data and company financials.
01Is Element Solutions Inc (ESI) stock a buy or sell in 2026?
Element Solutions Inc (ESI) is rated Buy by Wall Street analysts as of 2026. Of 35 analysts covering the stock, 18 rate it Buy or Strong Buy, 11 rate it Hold, and 6 rate it Sell or Strong Sell. The consensus 12-month price target is $42, implying -7.7% from the current price of $46. The bear case scenario is $12 and the bull case is $26.
02What is the ESI stock price target for 2026?
The Wall Street consensus price target for ESI is $42 based on 35 analyst estimates. The high-end target is $52 (+13.1% from today), and the low-end target is $36 (-21.7%). The base case model target is $20.
03Is Element Solutions Inc (ESI) stock overvalued in 2026?
ESI trades at 26.0x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Element Solutions Inc (ESI) stock in 2026?
The primary risks for ESI in 2026 are: (1) Profitability decline — Net income and diluted EPS decreased significantly despite rising sales, indicating margin pressures or cost inefficiencies. (2) Earnings uncertainty — Projected EPS for the next fiscal year carries a low confidence score (55/100), reflecting uncertainty in revenue and margin trends. (3) Segment concentration — Strong performance in the Electronics segment may expose the company to cyclical risks if growth slows in this area. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Element Solutions Inc's revenue and earnings forecast?
Analyst consensus estimates ESI will report consensus revenue of $3.0B (+8.6% year-over-year) and EPS of $0.93 (+51.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.3B in revenue.
06When does Element Solutions Inc (ESI) report its next earnings?
Element Solutions Inc is expected to report its next earnings on approximately 2026-07-29. Consensus expects EPS of $0.43 and revenue of $853M. Over recent quarters, ESI has beaten EPS estimates 75% of the time.
07How much free cash flow does Element Solutions Inc generate?
Element Solutions Inc (ESI) generated $121M in free cash flow over the trailing twelve months — a free cash flow margin of 4.3%. ESI returns capital to shareholders through dividends (0.7% yield) and share repurchases ($25M TTM).