Recent News
On July 6, 2026 Element Solutions and Solstice Advanced Materials announced a definitive merger agreement calling for a cash-and-stock acquisition. On August 27, 2026 the parties mutually terminated that merger agreement and issued termination documentation. Institutional filings in early September show Squarepoint Ops LLC increased its Element Solutions stake in the latest 13F period.
Technical Analysis
ADX 28.71 signals a strong trend environment, implying directional conviction that swing traders can exploit for short-term moves.
DI+ peak & reversal (DI+ 17.33) signals bearish directional pressure; DI- peak & reversal (DI- 33.08) signals bullish directional pressure, producing a tug-of-war that leaves price action dependent on who reclaims dominance.
MACD -1.20 shows negative momentum but MACD trend labeled dip & reversal indicates bullish momentum gathering; MACD remains below the signal line (-1.05) and requires a cross above the signal line to confirm momentum acceleration.
MRO -0.71 with a peak & reversal trend places price below model target, implying upward potential if momentum indicators flip positive.
RSI 41.39, decreasing, shows muted momentum with room for recovery before reaching overbought levels.
Price sits under the 50-day ($36.52) and 200-day ($35.47) averages while trading near the lower Bollinger band boundaries ($32.42–$30.72 for 1x/2x), indicating recent weakness but potential mean-reversion opportunity if intraday buyers lift price above the 12/26-day EMAs (12-day EMA $33.70 decreasing; 26-day EMA $34.96).
Volume at 10.1M outpaced the 10-day average (~4.65M) and the 200-day average (~3.58M), signaling institutional interest around recent events and enhancing the probability that technical triggers will carry weight.
Fundamental Analysis
Q2 operating metrics show accelerated top-line scale: total revenue $977.9M with revenue growth (period) 16.42% and YoY revenue growth 209.40%. EBIT $131.1M yields an EBIT margin of 13.41%, up 8.07% QoQ and up 9.99% YoY. EPS came in at $0.47 versus an estimate of $0.43, producing a $0.04 beat and an EPS surprise of 9.30%. The company reported positive operating cash flow and an end-period cash balance of $189.6M.
Margins show mixed direction: gross margin 34.16% contracted QoQ and YoY, while operating margin 11.63% fell YoY by 22.91% even as absolute EBIT improved. Free cash flow $71.7M produces a free cash flow yield of 0.73%, below the industry peer mean of 1.24%.
Leverage and liquidity present offsetting strengths and risks: total debt $2.12B with net debt $1.93B produces debt-to-EBITDA ~12.06x, highlighting high leverage relative to earnings, while current ratio 2.91 and quick ratio 2.11 indicate healthy near-term liquidity and working-capital coverage.
Return metrics improved year-over-year: return on assets 1.34% and return on equity 2.75% rose sharply QoQ and YoY; earnings growth registered 14.63% with earnings growth YoY at 65.84%. Price multiples run rich versus scale: trailing P/E ~86.10 and price-to-book ~3.51 sit below the industry peer mean price-to-book 4.88 but well within the peer range; forward P/E ~79.24 and PEG ~5.41 reflect elevated expectations versus near-term earnings growth.
WMDST values the stock as under-valued based on proprietary valuation inputs; valuation balances improved operating cash conversion and margin expansion against high leverage and elevated forward multiples.
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 | $ 406.3 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 | $ 0.53 | |
| 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 | 243.686 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: 58.598 low: -65.192 |
|
| 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: 0.375 ESI: 0.366 low: 0.0 |
|
| 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: 1.059 ESI: 0.754 low: 0.0 |
|
| 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: 4.882 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: 96.99 ESI: 86.103 low: -52.921 |
|
| 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: 12.297 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: 0.4 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: 1.198 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: 79.853 median: 49.76 low: 15.124 |
|
| 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: 7.125 ESI: 2.907 mean: 2.016 median: 1.841 low: 1.151 |
|
| Quick Ratio | 2.11 | |
| Quick Ratio QoQ | 10.637 % | |
| Quick Ratio YoY | -36.014 % | |
| Quick Ratio IPRWA | high: 2.301 ESI: 2.11 median: 1.566 mean: 1.484 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: 7.928 ESI: 5.463 low: -29.356 |
|
| 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 % median: 8.591 % mean: 5.946 % low: -28.712 % |
|
| Earnings Growth | 14.634 % | |
| Earnings Growth QoQ | 35.362 % | |
| Earnings Growth YoY | 65.843 % | |
| Earnings Growth IPRWA | high: 188.235 % mean: 30.435 % 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: 39.494 % ESI: 34.155 % low: -2.243 % |
|
| EBIT Margin | 13.406 % | |
| EBIT Margin QoQ | 8.069 % | |
| EBIT Margin YoY | 9.993 % | |
| EBIT Margin IPRWA | high: 27.108 % median: 17.711 % mean: 15.88 % 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: 16.239 % 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: 4.909 % mean: 1.24 % ESI: 0.727 % median: 0.65 % low: -8.666 % |
|
| 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: 220.523 % 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: 5.771 % median: 1.946 % mean: 1.39 % ESI: 1.342 % low: -12.582 % |
|
| 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: 0.074 median: 0.053 mean: 0.033 ESI: 0.027 low: -0.231 |
|
| 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: 7.447 % median: 2.614 % mean: 2.433 % ESI: 1.918 % low: -2.063 % |
|