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→Stable
- +1 more pillar — see the Why tab for full reasoning
Element Solutions Inc. (ESI) Stock Analysis
Range Bound setup · Catalyst-Driven edge
Basic Materials · Specialty Chemicals
Wait for pullback to $43.09. Weak momentum; also recent C-suite change — blocks BUY_NOW at $43.64. Engine's entry $43.09 (Ma50 Sticky) 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 $43.09. Weak momentum; also recent C-suite change — blocks BUY_NOW at $43.64. Engine's entry $43.09 (Ma50 Sticky) 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: RSI 52 mid-range, Bollinger mid-band. Mixed signals. Hold existing position. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Score 5.8/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 26d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-07-06Recent Developments — Element Solutions Inc.
Latest news
- 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 Mizuho Securities Maintains Element Solutions(ESI.US) With Buy Rating, Raises Target Price to $54 - 富途牛牛 — 富途牛牛 positive
- NEWS Mizuho Adjusts Price Target on Element Solutions to $54 From $47, Maintains Outperform Rating - marketscreener.com — marketscreener.com positive
- NEWS ESI Maintained by Mizuho -- Price Target Raised to $54 - GuruFocus — GuruFocus positive
- NEWS Element Solutions price target raised to $54 from $47 at Mizuho - TipRanks — TipRanks positive
Generated 2026-07-06T05:51:47Z.
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.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker·1 ceiling hit
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $43.09. Weak momentum; also recent C-suite change — blocks BUY_NOW at $43.64. Engine's entry $43.09 (Ma50 Sticky) 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: RSI 52 mid-range, Bollinger mid-band. Mixed signals. Hold existing position. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Target $48.27 (+10.6%), stop $38.42 (−13.6%), A.R:R -0.4:1. Score 5.8/10, moderate confidence.
Take-profit target: $48.27 (+12.5% upside). Target $48.27 (+10.6%), stop $38.42 (−13.6%), A.R:R -0.4:1. Stop-loss: $38.42.
Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%); Analyst target reached - limited upside remaining.
Element Solutions Inc. trades at a P/E of 70.4 (forward 21.2). TrendMatrix value score: 5.2/10. Verdict: Buy (Wait for Entry).
16 analysts cover ESI with a consensus score of 4.1/5. Average price target: $48.
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.