ESI (Element Solutions Inc.): Themes, ETFs, and Basket Ideas
ESI is the ticker for Element Solutions Inc.. This page covers what the company does, where it's heading, its approximate earnings and valuation, key competitors, the themes it belongs to, the ETFs that hold it, and similar stocks worth looking at.
What does Element Solutions Inc. do?
Element Solutions Inc is a specialty chemicals company providing high-performance specialty chemistries to electronics, automotive, industrial, and energy customers. The company organizes around two main segments. Electronics provides specialty chemistries for printed circuit board manufacturing, semiconductor packaging, and electronics assembly (including the MacDermid Alpha brand, a major supplier to electronics manufacturers globally). Industrial and Specialty provides specialty surface treatment chemistries, oil and gas chemistries, graphics arts chemistries, and various other industrial specialty chemicals.
The Electronics segment has been the larger growth contributor, driven by semiconductor packaging investment (advanced packaging chemistries for chiplet integration) and continued PCB manufacturing complexity. Headquartered in Fort Lauderdale, Florida. Ben Gliklich has been CEO since 2018.
Where is Element Solutions Inc. heading?
1. Semiconductor advanced packaging.
Element Solutions's MacDermid Alpha brand is a major supplier of specialty chemistries used in semiconductor advanced packaging (including chiplet integration and 2.5D/3D packaging). AI accelerator chip packaging drives demand. The company has been investing in capacity and product portfolio expansion.
2. PCB manufacturing chemistries.
Printed circuit board manufacturing requires extensive specialty chemistries (plating, surface treatment, etch). As PCB complexity increases (high-density interconnect, flex circuits), chemistry value per board increases. Element Solutions is a major global supplier.
3. Industrial specialty chemistries.
The Industrial and Specialty segment serves automotive (surface treatment), oil and gas (specialty production chemicals), graphics arts, and various other industrial markets. The segment is cyclical with industrial end markets but provides diversification away from electronics.
4. Capital allocation.
Element Solutions has been a meaningful capital returner through buybacks and dividends. M&A has been opportunistic. Strong free cash flow generation supports continued capital return and selective acquisitions.
Risks worth tracking: Cyclical exposure across electronics and industrial end markets. Customer concentration in major electronics manufacturers. Pass-through of raw material cost inflation can lag during volatile periods.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Element Solutions Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$2.5 billion
- Operating margin: ~16%
- Net income (TTM): ~$250 million
- EPS (TTM): ~$1.10
- P/E (TTM): ~22x
- Price to sales: ~2.5x
- Dividend yield: ~1.5%
- Free cash flow: ~$300 million annually
- Electronics segment: Larger and faster-growing than Industrial
Element Solutions trades in line with the S&P 500 average, reflecting balanced exposure to growth in semiconductor packaging chemistries against more cyclical industrial specialty chemicals. The multiple expansion potential depends on continued Electronics segment growth and operating leverage.
Themes ESI belongs to
These are the investment theses ESI naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.
ESI's competitors
Semiconductor and electronics chemistries
Atotech (part of MKS Inc., MKSI), DuPont electronic materials, Showa Denko, Mitsubishi Chemical, and various specialty competitors in PCB chemistries and semiconductor packaging chemistries. The market is fragmented across specific product categories and regions.
Industrial specialty chemicals
Various specialty chemicals competitors across the diverse Industrial and Specialty segment product lines. Each product line has different competitors. The market is highly fragmented.
Similar stocks
Other names that show up alongside ESI in the same themes. Worth a look if you're thinking about diversification within a single thesis rather than concentration on one ticker.
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Using ESI in a Walnut basket
The most useful question to ask about a single stock is rarely “will it go up?”. It's “does this fit a thesis I actually believe in, and how do I size it alongside other stocks that fit the same thesis?” That's what Walnut is built for.
Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where ESI would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around ESI with Walnut
Use Element Solutions Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is Element Solutions's ticker symbol?
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ESI, listed on NYSE. Officially Element Solutions Inc. Headquartered in Fort Lauderdale, Florida. Trades during US market hours, available at every major US brokerage.
Who are Element Solutions's competitors?
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In semiconductor and electronics chemistries: Atotech (part of MKS Inc., MKSI), DuPont electronic materials, Showa Denko, Mitsubishi Chemical, and various specialty competitors. In industrial specialty chemicals: various specialty competitors across the diverse product lines. The market is highly fragmented across specific product categories.
Is Element Solutions an AI infrastructure stock?
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Indirectly yes. The MacDermid Alpha brand is a major supplier of specialty chemistries used in semiconductor advanced packaging (chiplet integration, 2.5D/3D packaging). AI accelerator chip packaging drives demand for these chemistries. The exposure is upstream from NVIDIA but in the same overall AI infrastructure trend.
What is Element Solutions's P/E ratio?
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Approximately 22x trailing twelve months as of early 2026. In line with the S&P 500 average. Modest premium versus pure commodity specialty chemicals reflecting the Electronics segment growth exposure and balanced segment mix.
What does Element Solutions do?
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Element Solutions provides high-performance specialty chemistries to electronics, automotive, industrial, and energy customers. The Electronics segment (MacDermid Alpha brand) provides specialty chemistries for printed circuit board manufacturing, semiconductor packaging, and electronics assembly. The Industrial and Specialty segment provides surface treatment, oil and gas, graphics arts, and various other industrial specialty chemistries.
Who owns the most Element Solutions stock?
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Major institutional holders include Vanguard (~10%), BlackRock (~8%), and various specialty chemicals and small/mid-cap funds. Insider ownership is modest. Element Solutions is broadly institutionally owned and held in specialty chemicals and AI infrastructure supply chain funds.
Which ETFs have the most Element Solutions exposure?
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XLB (Materials Select Sector SPDR) holds ESI at small weight. VAW (Vanguard Materials) holds at similar weight. Specialty chemicals and electronics-themed ETFs hold ESI at higher concentrations. Small/mid-cap ETFs (IJH, IWR) hold ESI as part of broader universes. VOO holds ESI at fractional weight (~0.05%).
Which thematic baskets typically include Element Solutions?
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Two themes on Walnut. AI infrastructure (MacDermid Alpha specialty chemistries for semiconductor advanced packaging used in AI accelerator assembly) and Semiconductors (specialty chemistries for semiconductor packaging and PCB manufacturing). ESI is a smaller-cap specialty chemicals satellite position complementing larger materials exposures.
Is Element Solutions in the S&P 500?
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No. ESI's market cap (~$5 billion) is below the S&P 500 threshold. It is included in the S&P MidCap 400 and various small/mid-cap and specialty chemicals indices. Future S&P 500 inclusion would require market cap appreciation, possibly driven by continued Electronics segment growth and AI packaging chemistry demand.
What is Element Solutions's market cap?
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Approximately $5 billion as of early 2026. Market cap has been more stable than smaller specialty chemicals peers because of the diversified Industrial and Specialty segment that provides cash flow stability. The Electronics segment provides growth exposure to AI packaging chemistry.
Does Element Solutions pay a dividend?
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Yes. ESI yields approximately 1.5% as of early 2026, paid quarterly. The dividend has been raised steadily for many years. Capital allocation has been balanced between dividend, share buybacks, and acquisitions to extend product portfolio.
What is MacDermid Alpha?
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MacDermid Alpha is Element Solutions's Electronics segment brand, providing specialty chemistries for printed circuit board manufacturing (plating, surface treatment, etch chemistries) and semiconductor advanced packaging (chiplet integration, 2.5D/3D packaging chemistries). The MacDermid Alpha brand is widely recognized in the electronics manufacturing industry. As semiconductor advanced packaging has scaled for AI accelerators, MacDermid Alpha has become an AI infrastructure beneficiary.
How does ESI compare to MKSI?
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Both provide specialty chemistries to electronics manufacturing. MKSI (MKS Inc.) is larger and includes the Atotech chemistry business plus vacuum and laser sub-systems for semiconductor equipment. ESI (Element Solutions) is more focused on electronics chemistries (MacDermid Alpha brand) plus a diverse Industrial and Specialty segment. The two compete in PCB and packaging chemistries; ESI's industrial segment provides more diversification than MKSI's semi-focused business.
Should I own Element Solutions directly or through XLB?
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Direct ESI gives concentrated specialty chemicals exposure with the Electronics segment AI tailwind. XLB includes ESI at small weight along with much larger materials holdings dominated by Linde. For meaningful ESI exposure, direct ownership is necessary; the XLB weight is too small to drive portfolio returns from ESI specifically.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Element Solutions Inc.'s investor relations page or your broker before making investment decisions.