Shares of Element Solutions Inc (NYSE:ESI) recorded 3.10% gain during trading session on May 14th, 2019. The script traded as low as $10.64 and last traded at $10.97. 4.82 million shares changed exchanged hands during trading, a drop of -77.9% from the 30-day average session volume of 2.71M shares. The firm had previously closed at $10.64. The company has $255.24M outstanding shares, price-to-earnings-growth ratio of 1.45and a beta of 2.20. The company has a RSI of 51.13, ATR of 0.37 and a volatility of 3.66% this week. ESI has a 52 week low price of $9.26 and a 52 week high price of $13.54.
Investors have identified the tech 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 2.80B, 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 230.4 million on their books with 138 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 a decline. In terms of their assets, the company currently has 0 total, with 1.61 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
ESI were able to record 38.7 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 185.1 million. In cash movements, the company had a total of 32 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 third quarter of the year, Element Solutions Inc recorded a total of 459.8 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.07% coming in sequential stages and their sales for the third quarter increasing by 1.09%.
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 261.5 million trying to sell their products during the last quarter, with the result yielding a gross income of 198.3 million. This allows shareholders to hold on to 255.24M with the revenue now reading 23200000 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.23 cents a share).
Is the stock of ESI attractive?
Having a look at the company’s valuation, the company is expected to record 1.00 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.
2 out of 9 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Element Solutions Inc stock. 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 $13.17.