Element Solutions has delivered exceptional year-over-year revenue growth of 42% with consistent earnings beats, but the stock is priced at or marginally above its near-term target, converts only 16% of net income into free cash flow, and faces a put/call ratio of 72.61—an extraordinary level of institutional hedging that outweighs the momentum of the underlying growth story.
Thesis pillars
- Exceptional Growth Trajectory→Stable
- Poor Free Cash Conversion→Stable
- Extreme Options Market Hedging↑Improving
- +1 more pillar — see the Why tab for full reasoning
Element Solutions Inc. (ESI) Stock Analysis
Basic Materials · Specialty Chemicals
Wait for pullback to $37.29. At $37.44 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $37.29 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%).
Element Solutions formulates and sells specialty chemicals across two segments — Electronics (70% of $2.55 billion 2025 sales) and Specialties (30%) — serving electronics manufacturing, semiconductor, automotive, and industrial markets globally. Revenue is driven by consumable... Read more
Wait for pullback to $37.29. At $37.44 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $37.29 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%). Chart setup: No clear chart pattern; technical signals are mixed. Earnings in 2 days. Wait until post-earnings. Score 6.3/10, moderate confidence.
Passes 4/8 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 2d<=7d. Suitability: moderate.
Recent developments
updated 2026-07-26Recent Developments — Element Solutions Inc.
Latest news
- NEWS UBS reiterates Solstice Advanced Materials stock Buy rating on ESI deal value - Investing.com — Investing.com positive
- NEWS Is Element Solutions Inc (ESI) Overvalued After 4.8% Rally? GF V - GuruFocus — GuruFocus negative
- NEWS Element Solutions (ESI) Could Be 22% Undervalued On Its Data Center Growth Narrative - Yahoo Finance — Yahoo Finance positive
- NEWS ESI (Element Solutions Inc.) notches Q4 2025 EPS beat and 3.8 percent revenue growth, shares fall 1.73 percent. - AI Pow — Cổng thông tin điện tử tỉnh Lào Cai positive
- NEWS Why is Element Solutions stock sliding today? - Investing.com — Investing.com negative
Generated 2026-07-26T08:02:04Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicnon-U.S. operations79%10-K Item 1A: 'approximately 79% of our net sales were generated from non-U.S. operations'
- HIGHProductElectronics segment70%10-K Item 1: 'our Electronics and Specialties segments contributed approximately 70% and 30%, respectively'
Material Events(8-K, last 90d)
- 2026-03-23Item 5.02MEDIUMSir Martin E. Franklin, Executive Chairman of the Board, informed the Board he will not seek reelection and will retire effective May 4, 2026 (2026 annual meeting). Board size reduced from 8 to 7 directors. No disagreement with company operations, policies, or practices cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $37.29. At $37.44 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $37.29 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%). Chart setup: No clear chart pattern; technical signals are mixed. Earnings in 2 days. Wait until post-earnings. Target $41.22 (+10.1%), stop $35.32 (−6.0%), A.R:R 1.1:1. Score 6.3/10, moderate confidence.
Take-profit target: $41.22 (+10.1% upside). Target $41.22 (+10.1%), stop $35.32 (−6.0%), A.R:R 1.1:1. Stop-loss: $35.32.
Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%).
Element Solutions Inc. trades at a P/E of 60.4 (forward 18.3). TrendMatrix value score: 5.9/10. Verdict: Buy (Wait for Entry).
16 analysts cover ESI with a consensus score of 4.1/5. Average price target: $47.
What does Element Solutions Inc. do?Element Solutions formulates and sells specialty chemicals across two segments — Electronics (70% of $2.55 billion 2025...
Element Solutions formulates and sells specialty chemicals across two segments — Electronics (70% of $2.55 billion 2025 sales) and Specialties (30%) — serving electronics manufacturing, semiconductor, automotive, and industrial markets globally. Revenue is driven by consumable chemical processes integral to customers' manufacturing operations, with operational risks and switching costs cited as barriers to customer switching.