Element Solutions Inc.
ESI Basic Materials Specialty Chemicals
Element Solutions Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.6 billion, up 3.84% from fiscal 2024. In the quarter to June 2026, revenue grew 56.4%, EPS grew 60.0%, free cash flow grew 29.2% and total debt rose 30.5%, each against the same quarter a year earlier. Dividend growth for five consecutive years.
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Element Solutions Inc. (ESI) Altman Z-score
Element Solutions Inc.'s Altman Z-score for fiscal 2025 is 2.25, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.25 | 0.09 |
| FY2024 | 2.16 | 0.43 |
| FY2023 | 1.73 | 0.08 |
| FY2022 | 1.64 | (0.21) |
| FY2021 | 1.85 | 0.32 |
| FY2020 | 1.53 | 0.40 |
| FY2019 | 1.12 | 0.59 |
| FY2018 | 0.54 | 0.03 |
| FY2017 | 0.51 | 0.06 |
| FY2016 | 0.44 | (0.09) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.23 | — | 0.27 | |
| Retained earnings / total assets | (0.18) | — | −0.25 | |
| EBIT / total assets | 0.07 | — | 0.22 | |
| Market value of equity / total liabilities | 2.51 | — | 1.50 | |
| Sales / total assets | 0.50 | — | 0.50 | |
| Altman Z-score | Grey zone | 2.25 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 2.53 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| NEU NewMarket Corporation compare | 4.4× |
| SQM Sociedad Quimica y Minera S.A. compare | 3.1× |
| AXTA Axalta Coating Systems Ltd. compare | 2.4× |
| ALB Albemarle Corporation compare | 2.3× |
| EMN Eastman Chemical Company compare | 2.3× |
| SOLS Solstice Advanced Materials Inc. compare | 2.3× |
| ESI Element Solutions Inc. | 2.2× |
| SSL Sasol Ltd. compare | 1.9× |
| WLK Westlake Corporation compare | 1.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets