Element Solutions: A Lot Of Good News Arrives

The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryElement Solutions has executed two strategic acquisitions at reasonable multiples, enhancing its growth profile and sector exposure.Recent deals add $70 million in EBITDA, with 2026 pro forma EBITDA guided at $650–$670 million and leverage rising to ~2.8x.Shares have rallied 30% to $34, now trading at ~20x forward earnings, reflecting both organic momentum and M&A optimism.While progress is clear, the substantial re-rating and increased leverage warrant a more cautious stance at current valuation.Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More » Igor Suka/E+ via Getty Images Shares of Element Solutions (ESI) have seen healthy gains as of late, with investors approving of the acquisition streak that the company is undergoing. The company recently closed on two acquisitions, set to drive meaningful growth thisThis article was written byThe Value Investor27.74K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.