Element Solutions Inc. (ESI) vs RPM International Inc. (RPM)

Element Solutions Inc. and RPM International Inc. are both Specialty Chemicals companies. RPM International Inc. is the larger, with a market value of $12.6B against $8.4B — 1.5× the size. RPM International Inc. trades at the lower P/E: 19.4× against 48.3×. Element Solutions Inc. grew revenue faster over the last twelve months: 26.6% against 6.66%. RPM International Inc. has the higher net margin (8.38% vs 5.67%) and the higher return on invested capital (10.9% vs 5.20%). Both pay a dividend; RPM International Inc. yields more (1.47% vs 1.15%). Across the 23 metrics below, RPM International Inc. leads on 16 and Element Solutions Inc. on 7.

Valuation

Metric ESI RPM Specialty Chemicals median
P/E 48.26 19.39 24.83
P/S 2.76 1.62 1.46
P/B 3.08 3.85 1.76
Price to free cash flow 62.81 18.27 19.84
EV/EBITDA 19.03 12.59 13.18
EV/Sales 3.37 1.90 1.84
Earnings yield 2.07% 5.16% 2.11%
Free cash flow yield 1.59% 5.47% 2.29%

Profitability

Metric ESI RPM Specialty Chemicals median
Gross margin 38.42% 41.44% 29.23%
Operating margin 12.56% 12.29% 3.63%
Net margin 5.67% 8.38% 2.89%
Free cash flow margin 4.40% 8.88% 3.78%
Return on equity 6.53% 21.25% 3.62%
Return on assets 3.31% 8.17% 0.35%
Return on invested capital 5.20% 10.92% 2.75%

Growth

Metric ESI RPM Specialty Chemicals median
Revenue growth (TTM) 26.61% 6.66% 4.51%
EPS growth (last fiscal year) (21.78%) (3.36%) —
Revenue growth, 5-year CAGR 6.60% 5.19% 6.30%
Net income growth, 5-year CAGR 20.31% 5.73% 0.00%

Health

Metric ESI RPM Specialty Chemicals median
Debt to equity 0.75 0.76 0.54
Current ratio 2.91 1.68 1.94
Net debt to EBITDA 2.03 1.87 2.03

Dividend

Metric ESI RPM Specialty Chemicals median
Dividend yield 1.15% 1.47% 1.69%
Payout ratio 1.52 0.42 0.25

Size

Metric ESI RPM Specialty Chemicals median
Market cap 8.41b 12.59b 2.43b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack