ESI

Element Solutions, Inc.

Industrial/Transportation, SPAC


Presented:06/11/2020
Price:$10.31
Cap:$2.56B
Current Price:$25.67
Cap:$6.22B

Presented

Date06/11/2020
Price$10.31
Market Cap$2.56B
Ent Value$3.45B
P/E Ratio27.18x
Book Value$8.62
Div Yield0%
Shares O/S248.75M
Ave Daily Vol2,435,183
Short Int3.50%

Current

Price$25.67
Market Cap$6.22B
Element Solutions, Inc. is a specialty chemical company, which engages in the formulation of chemical solutions that enhance the performance of products people use every day. It operates through the Electronics; and Industrial & Specialty segments. The Electronics segment focuses in the researching and formulating specialty chemicals and materials for all types of electronics hardware, from complex printed circuit board designs to new interconnection materials. The Industrial & Specialty segment comprises industrial solutions, graphic solutions, and energy solutions . The company was founded by Martin E. Franklin on April 23, 2013 and is headquartered in West Palm Beach, FL.

Publicly traded companies mentioned herein: The Carlyle Group (CG), Dupont de Nemours Inc (DD), Element Solutions Inc (ESI), Entegris Inc (ENTG)

Highlights

The presenter is long shares of Element Solutions Inc (ESI) and believes the company could generate earnings of $1.50 - $2.00 within a few years. For reference, in 2019, ESI did $0.88 in earnings, and the presenter sees them doing $0.80 this year, $1.00 in 2021, and $1.24 in 2022. This earnings power is predicated on 1) an upcycle in the semiconductor industry, 2) EBITDA margin expansion and 3) the 5G rollout. While the rollout of 5G isn’t modeled into his estimates, he thinks it could add an extra $0.30 to earnings if the 5G rollout meaningfully ramps by 2022. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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