Element Solutions Stock Discussion

ESI's stock is undervalued and its bright future isn't fully reflected in the current price, indicating it's not too late to buy. However, investors should also consider the management's track record and company risks.

Analysts turn bearish after recent results, leading to a significant cut in EPS estimates. Despite this, the predicted earnings decline isn't expected to greatly affect the valuation. The estimates range is narrow, indicating the outcome isn't entirely unpredictable. The business is projected to grow in line with the industry.

The absence of recent insider transactions at Element Solutions isn't worrying. However, insiders selling over the past year, particularly below the current price, could be viewed negatively. High insider ownership indicates well-aligned management and shareholder incentives.

Despite rapid growth in EPS and DPS, Element Solutions' high profit payout ratio suggests unsustainability, signaling potential better dividend prospects elsewhere.

Element Solutions may have understated earning potential. Future improvement expected despite current detraction. Balance between margins, forecast growth, ROI, and risks is crucial.

The upward trend in Element Solutions' ROCE shows the success of efforts to improve returns on capital employed, reassuring investors about the company's growth potential. In the past five years, the company's stock has given a 94% return to its shareholders.