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Element Solutions Inc (ESI)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$14.26 - $25.83$19.08
Multi-Stage$14.55 - $15.91$15.22
Blended Fair Value$17.15
Current Price$25.17
Upside-31.87%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.320.320.320.260.050.000.000.000.000.00
YoY Growth--1.03%-1.28%26.66%399.19%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.43%1.28%1.67%1.17%0.28%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)239.40
(-) Cash Dividends Paid (M)77.80
(=) Cash Retained (M)161.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)47.8829.9317.96
Cash Retained (M)161.60161.60161.60
(-) Cash Required (M)-47.88-29.93-17.96
(=) Excess Retained (M)113.72131.68143.65
(/) Shares Outstanding (M)242.55242.55242.55
(=) Excess Retained per Share0.470.540.59
LTM Dividend per Share0.320.320.32
(+) Excess Retained per Share0.470.540.59
(=) Adjusted Dividend0.790.860.91
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.37%4.37%5.37%
Fair Value$14.26$19.08$25.83
Upside / Downside-43.35%-24.20%2.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)239.40249.87260.80272.20284.11296.54305.43
Payout Ratio32.50%44.00%55.50%67.00%78.50%90.00%92.50%
Projected Dividends (M)77.80109.94144.74182.37223.02266.88282.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.37%4.37%5.37%
Year 1 PV (M)99.81100.77101.74
Year 2 PV (M)119.29121.61123.95
Year 3 PV (M)136.45140.45144.52
Year 4 PV (M)151.48157.43163.55
Year 5 PV (M)164.56172.68181.11
PV of Terminal Value (M)2,856.792,997.673,144.05
Equity Value (M)3,528.383,690.603,858.92
Shares Outstanding (M)242.55242.55242.55
Fair Value$14.55$15.22$15.91
Upside / Downside-42.20%-39.55%-36.79%

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