Element Solutions Inc. (formerly Platform Specialty Products) is a global, diversified producer of high-technology specialty chemicals and provider of technical services. The business involves the formulation of a broad range of solutions-oriented specialty chemicals, which are sold into multiple industries, including agrochemical, animal health, electronics, graphic arts, plating, and offshore oil production and drilling. The company was founded in 1922 and is based in Miami, Florida.
ESI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Element Solutions Inc. To summarize, we found that Element Solutions Inc ranked in the 54th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 34% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ESI, they are:
Element Solutions Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 17.63% of tickers in our DCF set.
Element Solutions Inc's effective tax rate, as measured by taxes paid relative to net income, is at 25 -- greater than 87.64% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Basic Materials), Element Solutions Inc has a reliance on debt greater than 63.65% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ESI, try EXP, NP, CMP, SBSW, and GLT.
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Element Solutions Inc (NYSE:ESI) ("Element Solutions" or the "Company") announced today a change in the format of its 2020 annual meeting of stockholders (the "2020 Annual Meeting") from in-person to virtual-only due to the ongoing public-health concerns related to the coronavirus (COVID-19) pandemic. The date and time of the 2020 Annual Meeting (June 16, 2020 at 11:00 a.m. (Eastern Time)) remain unchanged.
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