Evaluating Element Solutions: Insights From 5 Financial Analysts

5 analysts have shared their evaluations of Element Solutions ESI during the recent three months, expressing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $26.4, a high estimate of $28.00, and a low estimate of $26.00. This upward trend is evident, with the current average reflecting a 8.2% increase from the previous average price target of $24.40.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Element Solutions. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Element Solutions. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Element Solutions compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Element Solutions's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Element Solutions's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Element Solutions analyst ratings.

Unveiling the Story Behind Element Solutions

Element Solutions Inc is a specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. The company has two segments which are Electronics and Industrial & Specialty. The Industrial & Specialty segment which generates majority of the revenue, includes chemical systems that protect and decorate metal and plastic surfaces; consumable chemicals that enable printing image transfer on flexible packaging materials; and chemistries used in water-based hydraulic control fluids in offshore energy production. Electronics segment researches, formulates and sells specialty chemicals and process technologies for all types of electronics hardware, from complex printed circuit board designs to semiconductor packaging.

Element Solutions's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Element Solutions's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -0.07%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.45%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Element Solutions's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.38% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Element Solutions's ROA stands out, surpassing industry averages. With an impressive ROA of 1.55%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.84, Element Solutions adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.