Element Solutions Faces Valuation Shift Amidst Flat Financial Performance and Market Lag

Element Solutions, Inc., a small-cap player in the Chemicals & Petrochemicals industry, has recently undergone an adjustment in evaluation, reflecting a shift in its valuation grade. The company's valuation has been categorized as "very expensive," indicating a notable change in its financial standing.
Key financial metrics reveal that Element Solutions has a P/E ratio of 17, which positions it above the industry average. The price-to-book value stands at 2.21, while the EV to EBIT ratio is recorded at 17.69. Additionally, the EV to EBITDA ratio is 12.56, and the EV to sales ratio is 2.70. The PEG ratio is notably low at 0.46, suggesting a potential discrepancy in growth expectations relative to its price.

Despite a dividend yield of 138.80% and a return on equity (ROE) of 12.76%, the company has experienced a flat financial performance in the latest quarter. Over the past five years, net sales have grown at an annual rate of 7.18%, with operating profit increasing at 9.11%. However, the stock's performance has lagged behind the broader market, generating a return of 3.16% over the past year compared to the S&P 500's 16.64%.

For more insights, you can Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.