Recent News
On July 6, 2026 Solstice Advanced Materials announced a definitive agreement to acquire Element Solutions in a cash-and-stock transaction valued at approximately $14.5 billion; the deal offers $10.00 cash plus 0.5 Solstice shares per Element share and outlines integration and synergy objectives.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX reads 24.16, signaling an emerging trend rather than strong conviction; DI- at 28.73 sits above DI+ at 16.16, indicating prevailing downside pressure even as both displayed recent dip-and-reversal behavior, which creates choppy directional conflict that may keep price action range-bound against the merger premium.
MACD & signal line: MACD at -0.92 with a peak-and-reversal trend and a signal line at -0.83 reflects bearish momentum; MACD remains below its signal line, which aligns with short-term pressure on the share price and argues for muted upside until momentum pivots.
Moving averages, Ichimoku, Bollinger bands: Twelve-day EMA decreasing while price at $36.02 sits below the 20-day and 50-day averages ($37.08 and $39.83 respectively) but above the 200-day average ($34.77). The price trades near the lower Bollinger band (lower 1x band $35.42), suggesting short-run support risk but continued proximity to the cloud components (Senkou A $42.63, Senkou B $42.92) keeps the medium-term structure below Ichimoku resistance levels.
MRO (Momentum/Regression Oscillator): MRO at -3.19 indicates the price currently lies below the modeled target, implying potential for mean reversion upward; the MRO peak-and-reversal label accompanies the indicator’s negative reading and signals that upside movement would rely on a momentum restoration.
RSI: RSI at 43.46 with a dip-and-reversal trend shows room to recover toward neutral territory but no overbought condition; combined with subdued volume (current volume ~2.13M below 10-day and 200-day averages), expect directional moves to require higher participation to sustain.
Fundamental Analysis
Revenue and growth: Trailing total revenue reached $977.9M. Reported YoY revenue growth registers as 209.4%, while the most recent quarter showed a QoQ decline of 32.23%; the contrast implies sizable year-over-year expansion driven by either acquisitions or lapping of a weak prior period, with sequential softness that traders should monitor.
Profitability: EBIT of $131.1M produces an EBIT margin of 13.41%, which sits below the industry peer mean of 15.88% and below the industry peer median of 17.71% but remains above the industry peer low. QoQ margin improved by 8.07% and YoY margin rose by 9.99%, supporting the narrative of margin recovery despite being below the peer central tendency.
Earnings per share and cash flow: Reported EPS of $0.47 exceeded the $0.43 estimate by $0.04, a 9.30% beat. Operating cash flow $99.6M and free cash flow $71.7M yield a free cash flow yield of 0.73% and a cash conversion ratio of 0.979, showing working-capital-driven cash generation but modest FCF yield relative to typical valuation expectations.
Leverage and capital structure: Net debt stands at $1.93B with debt-to-EBITDA about 12.06x, reflecting elevated leverage on a trailing basis. Interest coverage near 5.46x indicates the company covers interest expense but the debt multiple remains a material balance-sheet consideration in any valuation or takeover context.
Efficiency and working capital: Asset turnover at 0.1697 sits marginally above the industry peer mean of 0.1506 but below the peer high; cash conversion cycle at 106.4 days exceeds the industry peer mean of ~80 days, pointing to longer working-capital duration that constrains incremental free cash flow unless management compresses receivables or inventory days.
Valuation summary: WMDST values the stock as under-valued. Current market multiples show a P/E of 86.10x, P/B of 3.51x (below the industry peer mean P/B of 4.89 and median 5.63), and EV/Revenue and enterprise multiple metrics that reflect takeover pricing dynamics. The announced Solstice transaction at deal consideration implies a strategic premium that will drive near-term re-rating toward the deal-implied valuation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-27 |
| NEXT REPORT DATE: | 2026-10-26 |
| CASH FLOW | Begin Period Cash Flow | $ 177.3 M |
| Operating Cash Flow | $ 99.6 M | |
| Capital Expenditures | $ -27.90 M | |
| Change In Working Capital | $ -32.00 M | |
| Dividends Paid | $ -19.60 M | |
| Cash Flow Delta | $ 12.3 M | |
| End Period Cash Flow | $ 189.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 977.9 M | |
| Forward Revenue | $ 401.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 643.9 M | |
| Depreciation | $ 15.2 M | |
| Depreciation and Amortization | $ 44.7 M | |
| Research and Development | $ 19.5 M | |
| Total Operating Expenses | $ 864.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 334.0 M | |
| EBITDA | $ 175.8 M | |
| EBIT | $ 131.1 M | |
| Operating Income | $ 113.7 M | |
| Interest Income | — | |
| Interest Expense | $ 24.0 M | |
| Net Interest Income | $ -24.00 M | |
| Income Before Tax | $ 107.1 M | |
| Tax Provision | $ 29.8 M | |
| Tax Rate | 27.825 % | |
| Net Income | $ 77.3 M | |
| Net Income From Continuing Operations | $ 77.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.43 | |
| EPS Actual | $ 0.47 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 9.302 % | |
| Forward EPS | $ 0.52 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 5.8 B | |
| Intangible Assets | $ 3.5 B | |
| Net Tangible Assets | $ -729.60 M | |
| Total Current Assets | $ 1.5 B | |
| Cash and Short-Term Investments | $ 189.6 M | |
| Cash | $ 189.6 M | |
| Net Receivables | $ 711.0 M | |
| Inventory | $ 417.5 M | |
| Long-Term Investments | $ 146.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 186.4 M | |
| Short-Term Debt | $ 62.9 M | |
| Total Current Liabilities | $ 523.8 M | |
| Net Debt | $ 1.9 B | |
| Total Debt | $ 2.1 B | |
| Total Liabilities | $ 3.0 B | |
| EQUITY | ||
| Total Equity | $ 2.8 B | |
| Retained Earnings | $ -811.20 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 11.54 | |
| Shares Outstanding | 243.659 M | |
| Revenue Per-Share | $ 4.01 | |
| VALUATION | Market Capitalization | $ 9.9 B |
| Enterprise Value | $ 11.8 B | |
| Enterprise Multiple | 67.067 | |
| Enterprise Multiple QoQ | -4.263 % | |
| Enterprise Multiple YoY | 11.266 % | |
| Enterprise Multiple IPRWA | high: 79.976 median: 76.739 ESI: 67.067 mean: 63.55 low: 24.86 |
|
| EV/R | 12.057 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.056 | |
| Asset To Liability | 1.956 | |
| Debt To Capital | 0.43 | |
| Debt To Assets | 0.366 | |
| Debt To Assets QoQ | -2.514 % | |
| Debt To Assets YoY | 12.835 % | |
| Debt To Assets IPRWA | high: 0.804 median: 0.465 mean: 0.377 ESI: 0.366 low: 0.026 |
|
| Debt To Equity | 0.754 | |
| Debt To Equity QoQ | -4.44 % | |
| Debt To Equity YoY | 21.815 % | |
| Debt To Equity IPRWA | high: 3.978 median: 1.384 mean: 1.063 ESI: 0.754 low: 0.036 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.506 | |
| Price To Book QoQ | 15.554 % | |
| Price To Book YoY | 58.709 % | |
| Price To Book IPRWA | high: 7.485 median: 5.628 mean: 4.893 ESI: 3.506 low: 0.938 |
|
| Price To Earnings (P/E) | 86.103 | |
| Price To Earnings QoQ | 3.641 % | |
| Price To Earnings YoY | 38.207 % | |
| Price To Earnings IPRWA | high: 128.46 median: 128.46 mean: 97.33 ESI: 86.103 low: -30.244 |
|
| PE/G Ratio | 5.884 | |
| Price To Sales (P/S) | 10.083 | |
| Price To Sales QoQ | 2.079 % | |
| Price To Sales YoY | 8.673 % | |
| Price To Sales IPRWA | high: 17.046 mean: 12.321 median: 10.431 ESI: 10.083 low: 1.523 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 79.237 | |
| Forward PE/G | 5.415 | |
| Forward P/S | 24.679 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.573 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.17 | |
| Asset Turnover Ratio QoQ | 9.517 % | |
| Asset Turnover Ratio YoY | 32.994 % | |
| Asset Turnover Ratio IPRWA | high: 0.317 ESI: 0.17 median: 0.161 mean: 0.151 low: 0.067 |
|
| Receivables Turnover | 1.409 | |
| Receivables Turnover Ratio QoQ | 0.203 % | |
| Receivables Turnover Ratio YoY | 7.221 % | |
| Receivables Turnover Ratio IPRWA | high: 3.095 mean: 1.619 ESI: 1.409 median: 1.312 low: 0.402 |
|
| Inventory Turnover | 1.535 | |
| Inventory Turnover Ratio QoQ | 6.257 % | |
| Inventory Turnover Ratio YoY | 18.42 % | |
| Inventory Turnover Ratio IPRWA | high: 3.058 median: 1.536 ESI: 1.535 mean: 1.197 low: 0.413 |
|
| Days Sales Outstanding (DSO) | 64.754 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 106.375 | |
| Cash Conversion Cycle Days QoQ | -0.706 % | |
| Cash Conversion Cycle Days YoY | 2.263 % | |
| Cash Conversion Cycle Days IPRWA | high: 254.878 ESI: 106.375 mean: 79.972 median: 49.76 low: 24.622 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.979 | |
| CapEx To Revenue | -0.029 | |
| CapEx To Depreciation | -1.836 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.9 B | |
| Net Invested Capital | $ 4.9 B | |
| Invested Capital | $ 4.9 B | |
| Net Tangible Assets | $ -729.60 M | |
| Net Working Capital | $ 999.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.362 | |
| Current Ratio | 2.907 | |
| Current Ratio QoQ | 8.363 % | |
| Current Ratio YoY | -29.049 % | |
| Current Ratio IPRWA | high: 3.047 ESI: 2.907 mean: 1.931 median: 1.841 low: 1.151 |
|
| Quick Ratio | 2.11 | |
| Quick Ratio QoQ | 10.637 % | |
| Quick Ratio YoY | -36.014 % | |
| Quick Ratio IPRWA | ESI: 2.11 high: 1.892 median: 1.566 mean: 1.483 low: 0.768 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.056 | |
| Cost Of Debt | 0.81 % | |
| Interest Coverage Ratio | 5.463 | |
| Interest Coverage Ratio QoQ | 12.71 % | |
| Interest Coverage Ratio YoY | -7.525 % | |
| Interest Coverage Ratio IPRWA | high: 20.317 median: 8.846 mean: 8.002 ESI: 5.463 low: -10.302 |
|
| Operating Cash Flow Ratio | 0.186 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 32.386 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.944 | |
| Dividend Payout Ratio | 0.254 | |
| Dividend Rate | $ 0.08 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.809 % | |
| Revenue Growth | 16.417 % | |
| Revenue Growth QoQ | -32.228 % | |
| Revenue Growth YoY | 209.404 % | |
| Revenue Growth IPRWA | high: 22.018 % ESI: 16.417 % mean: 11.008 % median: 8.591 % low: 3.112 % |
|
| Earnings Growth | 14.634 % | |
| Earnings Growth QoQ | 35.362 % | |
| Earnings Growth YoY | 65.843 % | |
| Earnings Growth IPRWA | high: 188.235 % mean: 30.395 % median: 22.941 % ESI: 14.634 % low: -213.043 % |
|
| MARGINS | ||
| Gross Margin | 34.155 % | |
| Gross Margin QoQ | -11.094 % | |
| Gross Margin YoY | -19.843 % | |
| Gross Margin IPRWA | high: 55.127 % median: 44.071 % mean: 39.592 % ESI: 34.155 % low: 6.1 % |
|
| EBIT Margin | 13.406 % | |
| EBIT Margin QoQ | 8.069 % | |
| EBIT Margin YoY | 9.993 % | |
| EBIT Margin IPRWA | high: 27.108 % median: 17.711 % mean: 15.882 % ESI: 13.406 % low: -14.185 % |
|
| Return On Sales (ROS) | 11.627 % | |
| Return On Sales QoQ | -12.328 % | |
| Return On Sales YoY | -22.913 % | |
| Return On Sales IPRWA | high: 29.895 % median: 18.216 % mean: 16.291 % ESI: 11.627 % low: -13.199 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 71.7 M | |
| Free Cash Flow Yield | 0.727 % | |
| Free Cash Flow Yield QoQ | -165.792 % | |
| Free Cash Flow Yield YoY | -23.15 % | |
| Free Cash Flow Yield IPRWA | high: 3.874 % mean: 1.241 % ESI: 0.727 % median: 0.65 % low: -3.553 % |
|
| Free Cash Growth | -178.19 % | |
| Free Cash Growth QoQ | -20.363 % | |
| Free Cash Growth YoY | -166.989 % | |
| Free Cash Growth IPRWA | high: 402.464 % median: 291.667 % mean: 221.21 % ESI: -178.19 % low: -391.667 % |
|
| Free Cash To Net Income | 0.928 | |
| Cash Flow Margin | 9.981 % | |
| Cash Flow To Earnings | 1.263 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.342 % | |
| Return On Assets QoQ | 30.165 % | |
| Return On Assets YoY | 38.636 % | |
| Return On Assets IPRWA | high: 3.754 % median: 1.946 % mean: 1.41 % ESI: 1.342 % low: -5.668 % |
|
| Return On Capital Employed (ROCE) | 2.492 % | |
| Return On Equity (ROE) | 0.027 | |
| Return On Equity QoQ | 34.442 % | |
| Return On Equity YoY | 52.244 % | |
| Return On Equity IPRWA | high: 0.073 median: 0.053 mean: 0.042 ESI: 0.027 low: -0.114 |
|
| DuPont ROE | 2.787 % | |
| Return On Invested Capital (ROIC) | 1.918 % | |
| Return On Invested Capital QoQ | 33.01 % | |
| Return On Invested Capital YoY | 42.602 % | |
| Return On Invested Capital IPRWA | high: 5.223 % median: 2.614 % mean: 2.425 % ESI: 1.918 % low: -2.063 % |
|