Does Element Solutions Inc have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Element Solutions Inc (ESI) 51.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 70, returns on capital 0, balance-sheet safety 72, capital discipline 80.

How has ESI's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 51.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Element Solutions Inc

ESI · Materials · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power70

Median gross margin 42.3% over 10y, very stable.

Returns on capital0

Median ROIC 5.1%, above the 9% hurdle in 0% of years.

Balance-sheet safety72

Net debt/EBITDA 2.0x, no material interest expense disclosed.

Capital discipline80

Owner earnings +21.2%/yr, share count n/a.

Margin of safety

Above valueOn sale

No price data

Owner earnings (normalized): $300.7M
Est. intrinsic value / share: —
Recent price: $37.40
Discount to value: No price data

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

15 years of fundamentals

The business, in plain English

Element Solutions Inc booked $2.6B of revenue in FY2025 in the Materials sector and kept 42.0% of it as gross profit — a solid-margin business by that measure. After every other cost, 7.5% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $731.2M (FY2012) to $2.6B (FY2025) — about 10.1% a year compounded over 13 years.

It earned 6.7% on invested capital in FY2025, with a median of 4.6% across 13 filed years. The Returns on Capital filter above scores it 0/100.

The balance sheet carried $1.6B of total debt in FY2025 against $279.8M of owner earnings — roughly 5.8 years of owner earnings to retire it all. Balance-Sheet Safety scores it 72/100.

Put together: Capital Discipline is the strongest of the four filters (80/100) and Returns on Capital the weakest (0/100), which is how ESI lands at 52/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$2.6B FY2025

Gross marginRevenue kept after cost of goods42.0% FY2025

Return on invested capitalOperating profit on the capital employed6.7% FY2025

Owner earningsCash an owner could take out$279.8M FY2025

Gaps in a line mean that item isn’t in ESI’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale51.6 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — ESI has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Materials context

#69 of 214 scored Materials companies, ranked by Moat Score.

Nearest peers by Moat Score

#67NCSM NCS Multistage Holdings, Inc.52.3 out of 100, Shallow moatShallow moat
#68VRA VERA BRADLEY, INC.51.7 out of 100, Shallow moatShallow moat
#70CHRD Chord Energy Corp50.6 out of 100, Shallow moatShallow moat
#71CMPR Cimpress plc50.5 out of 100, Shallow moatShallow moat

Compare ESI with its nearest peers →All Materials companies on the Index →

Common questions about ESI

Does Element Solutions Inc have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Element Solutions Inc (ESI) 51.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 70, returns on capital 0, balance-sheet safety 72, capital discipline 80.
How has ESI's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 51.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell ESI. See the disclaimer.