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↑Improving
- Extreme Options Market Hedging↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 18, 2026
Element Solutions Inc. (ESI) Stock Analysis
Range Bound setup
Basic Materials · Specialty Chemicals
Hold if already holding. Not a fresh buy at $35.79, but acceptable to hold if already in. Reasons: 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
Hold if already holding. Not a fresh buy at $35.79, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%). Chart setup: RSI 46 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 6.5/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news boost analyst 0.60, earnings proximity 110d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-10-29Recent Developments — Element Solutions Inc.
Latest news
- NEWS Zacks Industry Outlook Highlights Element Solutions, H.B. Fuller Company, Quaker Chemical and Minerals Technologies - Tr — TradingView neutral
- NEWS Element Solutions Inc (ESI) Shares Fall 3.5% -- What GF Score of 80 Tells Investors - GuruFocus — GuruFocus negative
- NEWS Why Is Element Solutions (ESI) Down 2.7% Since Last Earnings Report? - sharewise.com — sharewise.com negative
- NEWS Why Is Element Solutions (ESI) Down 2.7% Since Last Earnings Report? - Yahoo Finance — Yahoo Finance negative
- NEWS Castleark Management LLC Invests $12.59 Million in Element Solutions Inc. $ESI - MarketBeat — MarketBeat neutral
Generated 2026-10-29T11:48:39Z.
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. How we score · Editorial policy
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Rating Breakdown
1 ceiling hit
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $35.79, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%). Chart setup: RSI 46 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Analyst target $41.18 (+15.1%), stop $33.28 (−7.5%), A.R:R 1.2:1. Score 6.5/10, moderate confidence.
Analyst target: $41.18 (+15.1% upside). Analyst target $41.18 (+15.1%), stop $33.28 (−7.5%), A.R:R 1.2:1. Stop-loss: $33.28.
Concentration risk — Geographic: non-U.S. operations (79.0%); Concentration risk — Product: Electronics segment (70.0%); V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2).
Element Solutions Inc. trades at a P/E of 42.1 (forward 16.5). TrendMatrix value score: 6.7/10. Verdict: Hold.
17 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.