Element Solutions Inc. (ESI) exhibits 42.0% gross margins and 8.8% return on invested capital within Materials (Major Chemicals), balanced against a 22.7x enterprise multiple and 6.6% implied options volatility.
Sustained 42.0% gross profitability converts into 13.4% operating margin and 8.8% ROIC, outpacing sector cost of capital.
ROIC: 8.8% // GM: 42.0%YoY revenue trajectory of +3.8% paired with 1.81% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +3.8% // FCF YLD: 1.81%Altman Z-Score of 2.88 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.88 // F-SCORE: 7/9Trading at 45.0x trailing P/E (41.9x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 45.0x // EV/EBITDA: 22.7xOptions market prices a ±6.6% implied move with a 0.90 put/call ratio around $35.00 max pain.
IMPL MOVE: ±6.6% // P/C: 0.90Elevated industry capital intensity and customer concentration in Major Chemicals require continuous execution to defend 7.5% net margins.
NET MARGIN: 7.5% // D/E: 0.38x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
Unblur the exact $50,000 delta-adjusted ETF/options hedge ratio for ESI & activate live FRED threshold breach alerts.