(ESI) Element Solutions - Ratings and Ratios

Element Solutions Inc is a global specialty chemicals company with a presence in the US, China, and other international markets, operating through two distinct segments: Electronics and Industrial & Specialty. The Electronics segment provides a range of assembly, circuitry, and semiconductor solutions to industries such as mobile communications, computing, automotive, and aerospace. Meanwhile, the Industrial & Specialty segment caters to various end-markets, including aerospace, automotive, construction, and oil & gas, with products such as industrial coatings, graphics solutions, and energy-related fluids.

With a rich history dating back to 1785, Element Solutions Inc has evolved significantly over the years, having rebranded from Platform Specialty Products Corporation to its current name in January 2019. Headquartered in Fort Lauderdale, Florida, the company has established itself as a major player in the specialty chemicals industry, with a diverse portfolio of products and a global footprint.

Analyzing the technical data, ESIs current price of $21.67 is slightly below its 20-day Simple Moving Average (SMA) of $21.76, indicating a potential short-term bearish trend. However, the stock is above its 50-day SMA of $20.71, suggesting a longer-term bullish outlook. The Average True Range (ATR) of 0.61, equivalent to 2.83%, implies moderate volatility. Considering the fundamental data, ESIs market capitalization stands at approximately $5.2 billion, with a price-to-earnings (P/E) ratio of 18.29 and a forward P/E of 15.24, indicating a relatively reasonable valuation. The return on equity (RoE) of 11.78% is also noteworthy.

Based on the technical and fundamental data, a forecast for ESI can be constructed. Given the current price is near the 20-day SMA and above the 50-day SMA, a potential target price could be near the 52-week high of $29.05, representing a growth of around 34% from current levels. However, this would require a sustained upward trend, potentially driven by strong earnings growth and improved market sentiment. Conversely, a decline below the 50-day SMA could signal a more significant correction, potentially towards the 52-week low of $17.43. As such, a prudent strategy could involve monitoring the stocks price action relative to its SMAs and adjusting positions accordingly.