Recent News
July 6, 2026: Solstice Advanced Materials announced a definitive agreement to acquire Element Solutions in a cash-and-stock transaction valued at about $14.5 billion. July 27, 2026: Element Solutions reported second-quarter 2026 results and reiterated guidance while posting record quarterly revenue. August 27, 2026: Element Solutions announced a mutual termination of the merger agreement with Solstice, with no termination payments by either party.
Technical Analysis
ADX registers 26.24, indicating a strong trend environment; strength supports conviction that short-term directional moves can carry momentum.
DI+ shows a peak-and-reverse pattern, signaling a bearish directional shift, while DI- also shows a peak-and-reverse pattern that signals bullish directional pressure; the conflicting directional signals point to immediate volatility with no clean one-sided trend.
MACD sits negative at -0.82 but displays a dip-and-reversal and has crossed above its signal line (-0.90), a bullish momentum signal despite the negative absolute level; expect short-term upside attempts to encounter resistance near the 26-day EMA and 50-day average.
MRO stands at 5.64 and is increasing; the positive MRO implies price sits modestly above WMDST’s target and therefore carries limited downside bias from oscillator reversion risk.
RSI at 44.07 with a peak-and-reverse signature signals a bearish shift from recent highs; the indicator leaves room for both further consolidation and renewed selling pressure if momentum indicators roll over again.
Price sits at $36.21 between the 12-day EMA ($35.72) and the 26-day EMA ($36.52), below the 50-day average ($38.08) but above the 200-day average ($35.13); Bollinger bands compress tightly around recent trading, supporting a near-term range between the lower band (~$34.71) and the super-trend resistance (~$37.58). Volume on the close undercuts the 10-day average, reducing conviction behind the latest move and increasing the likelihood of chop until a catalyst appears.
Fundamental Analysis
Revenue totaled $977.9 million. YoY revenue growth equals 209.40%, while sequential revenue change shows a QoQ decline of -32.23%; the YoY surge reflects sizable period-over-period gains while the QoQ drop highlights timing variability in sales recognition or acquisitions. Gross margin sits at 34.16% (down YoY by 19.84 percentage points), and operating margin equals 11.63% (down YoY by 22.91 percentage points), indicating margin pressure despite top-line expansion.
EBIT reaches $131.1 million with an EBIT margin of 13.41%, which falls below the industry peer mean of 15.88% and below the peer median of 17.71% while remaining well above the industry low. QoQ EBIT margin improved by 8.07 percentage points and YoY improved by 9.99 percentage points, underlining margin recovery versus recent comps.
Earnings per share came in at $0.47 versus an estimate of $0.43, an EPS surprise of +9.30%, and forward EPS of $0.5258 supports a forward P/E of 79.24. Trailing P/E equals 86.10, slightly below the industry peer mean of 97.33. The price-to-book ratio reads 3.51, below the peer mean of 4.89. WMDST’s valuation model classifies the stock as under-valued, reflecting the combination of elevated growth metrics and a valuation profile below peer averages on some multiples.
Free cash flow equals $71.7 million, producing a free-cash-flow yield of 0.73%, beneath the industry peer mean of 1.24% and down QoQ and YoY, which compresses the company’s cash return profile despite positive operating cash flow of $99.6 million and a cash conversion ratio near 0.979. The current ratio stands at 2.91, above the industry peer mean of 1.93, providing short-term liquidity cushion.
Leverage remains high by coverage metrics: total debt of $2.12 billion yields debt-to-EBITDA of 12.06x and debt-to-equity of 0.75. Interest coverage equals 5.46, below the peer mean of 8.00, indicating meaningful fixed-charge exposure despite manageable cost of debt (~0.81%). Net tangible assets show a negative balance, reflecting sizable intangibles on the balance sheet. Return on equity sits at 2.75%, below the peer mean of 4.21%, while earnings growth YoY equals 65.84% and operating cash conversion supports ongoing investment and acquisition optionality.
Working-capital dynamics require attention: cash conversion cycle runs long at 106 days versus the peer mean of ~80 days, driven by inventory days (~74) and receivables (~65), limiting dexterity in converting sales to cash relative to many peers.
Valuation context: enterprise multiple measures at 67.07, slightly above the industry peer mean of 63.55, while P/E and P/B sit below their peer means; combined with WMDST’s stated “under-valued” classification, fundamentals show a mixed picture—strong headline revenue and earnings growth offset by compressed margins, low free-cash yield, and elevated leverage.
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 | $ 405.2 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: 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 % |
|