Element Solutions vs NewMarket
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KIRA’s take AI analyst
I put Element Solutions and NewMarket side by side, using each one’s latest annual report. Here is what stands out:
- NewMarket is the larger business, with $2.7B of revenue in fiscal 2025 against $2.6B for Element Solutions.
- Element Solutions grew revenue faster (3.8%, against −2.2%).
- NewMarket kept more of each dollar of sales as operating profit (20.0% operating margin, against 13.4%).
- NewMarket turned more of its sales into free cash flow (18.0% FCF margin, against 8.9%).
- NewMarket earned a higher return on the capital invested in it (16.3%, against 6.5%).
- Investors pay more for each dollar of Element Solutions’s earnings: a P/E of 39.5x against 18.9x for NewMarket.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Element Solutions
ESI
4/11
Revenue growth5-year growthGross marginPiotroski F-score
NewMarket
NEU
7/11
Operating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | ESI FY25 | NEU FY25 |
|---|---|---|
| Size | ||
| Market cap | $8.2B | $8.1B |
| Revenue | $2.6B | $2.7B |
| Free cash flow | $228M | $491M |
| Net income | $191M | $419M |
| Growth | ||
| Revenue growth | 3.8% | −2.2% |
| 5-year growth | 6.6% | 6.3% |
| Share count change | −0.1% | −1.8% |
| Profitability | ||
| Gross margin | 42.0% | 31.5% |
| Operating margin | 13.4% | 20.0% |
| Net margin | 7.5% | 15.4% |
| FCF margin | 8.9% | 18.0% |
| Return on capital | 6.5% | 16.3% |
| Return on equity | 7.6% | 25.9% |
| Balance sheet | ||
| Net debt | $1.0B | $824M |
| Net debt / EBITDA | 2.1x | 1.2x |
| Dividends and buybacks | $103M | $183M |
| Valuation & quality | ||
| P/E | 39.5x | 18.9x |
| Piotroski F-score | 7 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.