Element Solutions Inc cash flow to debt ratio of 17.64% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Element Solutions Inc's free cash flow has decreased 22.48% from $293.60M last year to $227.60M, signaling decreasing performance

Element Solutions Inc's debt to equity ratio is 0.75, which means that the company's assets are unhealthy financed, signaling financial risk.

Element Solutions Inc's debt has decreased relative to shareholder equity from 0.80 last year to 0.75 today, signaling strengthened financials

Element Solutions Inc has a net debt to EBITDA ratio of 3.17x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Element Solutions Inc's interest coverage ratio of 5.52 indicates that earnings with good margin can cover interest payments on company debt

Element Solutions Inc's profit margin has decreased (42.96%) in the last year from 9.94% to 5.67%, signaling decreasing performance

Element Solutions Inc's short-term assets of $1.58B exceed its short-term liabilities of $429.90M

Element Solutions Inc's return on assets of 3.09% is lower than the 5.00% threshold, indicating inefficient asset utilization

Element Solutions Inc's return on equity of 6.57%, is lower than 15.00%, indicating bad performance

Element Solutions Inc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Element Solutions Inc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Element Solutions Inc has positive free cash flow, indicating the company generates cash after capital expenditures

Element Solutions Inc has a free cash flow yield of 2.51%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Element Solutions Inc's yearly earnings has decreased 21.87% since last year from $244.20M to $190.80M, signaling decreasing performance

Element Solutions Inc's yearly revenue has increased 3.84% since last year from $2.46B to $2.55B, signaling increasing performance

ROIC 7.43% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Element Solutions Inc's 3-year revenue CAGR of 0.02% is positive, indicating growing revenue over the past 3 years

Element Solutions Inc had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Element Solutions Inc had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Element Solutions Inc is overvalued relative to its fair value price of 6.64 based on Discounted Cash Flow model

Element Solutions Inc has an earnings yield of 1.97%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Element Solutions Inc is overvalued relative to its fair value price of 10.08 based on EBITDA multiple model

Element Solutions Inc has an EV/EBITDA ratio of 31.48x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Element Solutions Inc is overvalued relative to its fair value price of 25.34 based on Earnings Fair Value model

Element Solutions Inc has a PEG-ratio over 1 which is considered overvalued

Element Solutions Inc has a price-to-book ratio of 3.21x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Element Solutions Inc has a price-to-sales ratio of 2.88x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue