Element Solutions Inc (NYSE:ESI) shares traded higher over the last trading session, gaining 0.13% on 06/03/21. The shares fell to a low of $23.19 before closing at $23.54. Intraday shares traded counted 1.14 million, which was 34.96% higher than its 30-day average trading volume of 1.76M. ESI’s previous close was $23.51 while the outstanding shares total 247.20M. The firm has a beta of 1.67, a 12-month trailing P/E ratio of 38.84, and a growth ratio of 3.16. The stock’s Relative Strength Index (RSI) is 64.64, with weekly volatility at 1.89% and ATR at 0.60. The ESI stock’s 52-week price range has touched low of $10.08 and a $23.81 high.
Investors have identified the Specialty Chemicals company Element Solutions Inc as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.87 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Element Solutions Inc (ESI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ESI, the company has in raw cash 317.5 million on their books with 7.4 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1.07 billion total, with 320.0 million as their total liabilities.
ESI were able to record 24.1 million as free cash flow during the 08/10/2021 quarter of the year, this saw their quarterly net cash flow reduce by 25.6 million. In cash movements, the company had a total of 32.6 million as operating cash flow.
Potential earnings growth for Element Solutions Inc (ESI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/10/2021 quarter of the year, Element Solutions Inc recorded a total of 550.1 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 17.72% coming in sequential stages and their sales for the 08/10/2021 quarter increasing by 2.45%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 309.1 million trying to sell their products during the last quarter, with the result yielding a gross income of 241.0 million. This allows shareholders to hold on to 247.20M with the recently reported earning now reading 0.33 cents per share. This is a figure that compared to analyst’s prediction for their 08/10/2021 (0.37 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.48 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ESI sounds very interesting.
Is the stock of ESI attractive?
In related news, Director, Benson Scot sold 1,499 shares of the company’s stock in a transaction that recorded on Mar 02. The sale was performed at an average price of 18.58, for a total value of 27,851. As the sale deal closes, the VP, Program Mgt & Integration, Mount Patricia now sold 3,000 shares of the company’s stock, valued at 35,550. Also, Director, FRANKLIN MARTIN E bought 500,000 shares of the company’s stock in a deal that was recorded on Oct 06. The shares were price at an average price of 11.50 per share, with a total market value of 5,750,000. Following this completion of acquisition, the Director, Fraser Christopher T. now holds 8,000 shares of the company’s stock, valued at 91,906. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
5 out of 8 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Element Solutions Inc. 0 analysts has assigned a Sell rating on the ESI stock. The 12-month mean consensus price target for the company’s shares has been set at $25.57.