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Elementis PLC (ELM) Fair Value & Analysis

Basic Materials · GB · Market cap 917M GBX

EP Elementis PLC ELM · LSE
Price£1.78
Fair Value£1.62
Upside-9.0%
Quality60/100
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Strengths

Low debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Weak Growth
!Loss-making · -7.6% net margin
!Moderate moat 48/100
!Weak on valuation: 21 out of 100
Weak Growth
Loss-making · -7.6% net margin
Low debt · generates free cash flow
2.65% dividend yield
Ranks above peers (9/15)
Moderate moat 48/100
Evidence: High Range £1.22 – £2.26 Share as image

Fair value as of: Aug 20, 2026

From 15 valuation models · updated yesterday

Fair value updated Aug 20, 2026, revised from £1.10 to £1.62 (+47.3%) since Aug 13, 2026. Share price +8.8% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (£1.22 to £2.26) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£1.87 £0.8289 Fair Value £1.62 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range £0.8289 – £1.87 · fair‑value band £1.22 – £2.26 · the £1.78 price screens above the £1.62 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Elementis PLC (ELM) currently trades at £1.78, while our model-based Fair Value estimate is £1.62, implying the stock looks roughly 9.0% fairly valued today. The Quality Score stands at 60/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Elementis PLC generated revenue of £598M at a net margin of -7.6%. It earns a return on equity of 8.9%. Net debt stands at £202M. The stock trades on a trailing P/E of 22.3. Fundamentals as of Aug 20, 2026

Our scenario range runs from £1.22 (bear case) to £2.26 (bull case); at £1.78, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Basic Materials peers we cover trades at -67% fair-value upside, at -9%, ELM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £0.5600 £0.7800 £1.13 80
Rev-Margin DCF £0.6900 £1.15 £1.72 74
ROIC Compounder £0.8800 £1.03 £1.16 72
All 15 models by family
DCF Models
FCF DCF £0.5400 £0.7700 £1.16 38
5Y Revenue Exit £0.6900 £1.13 £1.78 39
5Y EBITDA Exit £0.9800 £1.64 £2.51 41
10Y Revenue Exit £0.5900 £0.8900 £1.22 36
10Y EBITDA Exit £0.7800 £1.18 £1.61 37
Earnings-Based
EPV £0.8800 £1.03 £1.15 59
Dividend Discount
Gordon GGM £0.3500 £0.3800 £0.4200 70
DDM Multi-Stage £0.3500 £0.4200 £0.5100 61
Multiples
EV/EBIT £1.74 £2.40 £3.06 53
EV/EBITDA £1.58 £2.19 £2.79 54
EV/Revenue £0.8900 £1.38 £1.86 43
Asset-Based
NCAV (Graham) £0.5700 £0.7600 £1.13 50
Growth DCF
Growth DCF £0.5600 £0.7800 £1.13 80
Rev-Margin DCF £0.6900 £1.15 £1.72 74
Economic Profit
ROIC Compounder £0.8800 £1.03 £1.16 72

Widest divergence: Multiples (£2.19) versus Dividend Discount (£0.3800). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 598M GBX
Net margin -7.6%
Return on equity 8.9%
Free cash flow 54.0M GBX FY2025
P/E ratio 22.3
Operating margin 23.8%
More key figures
EPS (TTM) £0.0800
Dividend yield 2.7%
EPS growth (YoY) +31.1%
Net debt 202M GBX FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 56 · Market factors (momentum, volatility) 64

Profitability 17
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 88
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Coatings and Personal Care. The Coatings segment offers production of rheological modifiers and additives for decorative and industrial coatings; and performance chemicals for the energy sector.

Full company description

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Coatings and Personal Care. The Coatings segment offers production of rheological modifiers and additives for decorative and industrial coatings; and performance chemicals for the energy sector. This segment provides products for applications in architectural and industrial coatings, adhesives, and sealants and construction additives. The Personal Care segment offers rheological modifiers and compounded products, including active ingredients for antiperspirants (AP) deodorants for personal care manufacturers. This segment offers products for applications in antiperspirants, skin care, and color cosmetics. Elementis plc was founded in 1884 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Elementis PLC reported revenue of £610M in FY2025 versus £709M in FY2021, a compound −3.7%/yr. Reported net income was −£46.5M in FY2025.

Growth Quality 37/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£610M
Latest YoY
−17.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.1%
Avg. growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.0%
Revenue −3.7%/yr
FY21 £709M
FY22 £736M
FY23 £713M
FY24 £738M
FY25 £610M
Net income
FY21 £2.5M
FY22 −£51.1M
FY23 £26.5M
FY24 −£47.8M
FY25 −£46.5M

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Cite: Fair Value Calculator (2026). "Elementis PLC Fair Value". https://www.fairvalue-calculator.com/stock/ELM

Peer Group

Specialty Chemicals · 677 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Above median
Fair Value upside −9% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) -8% · Bottom 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 0.29× · Higher than median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 22.3× · Cheaper than median
P/B 1.94× · Pricier than median
P/S (TTM) 2.09× · Pricier than median
P/FCF 23.2× · Pricier than 75% of peers
EV/EBITDA 9.3× · Cheaper than median
PEG 0.02× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE21 · sector 0
FUTURE0 · sector 19
PAST36 · sector 23
HEALTH86 · sector 95
DIVIDEND48 · sector 30

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $479.43 $222.03 -54%
Wanhua Chemical Group 600309 ¥75.06 ¥68.03 -9%
Asian Paints Limited ASIANPAINT ₹2,630 ₹696.23 -74%
Solar Industries India Limited SOLARINDS ₹18,730 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,702 ₹351.84 -79%
PT Chandra Asri Pacific Tbk TPIA 2,160 IDR 2,322 IDR +8%
Berger Paints India Limited BERGEPAINT ₹541.00 ₹156.35 -71%
Gujarat Fluorochemicals Limited FLUOROCHEM ₹4,680 ₹724.88 -85%
Himadri Speciality Chemical Limited HSCL ₹703.65 ₹229.10 -67%
Enaex S.A ENAEX 25,050 CLP 23,574 CLP -6%

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Frequently asked questions

Is Elementis PLC (ELM) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of £1.62 versus a price of £1.78, about −9% (fairly valued).
What is the fair value of ELM?
Our model-based fair value for Elementis PLC is £1.62 (as of Aug 20, 2026), built from audited fundamentals. The current price: £1.78.
What is the quality score of ELM?
Elementis PLC has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Elementis PLC (ELM)?
Elementis PLC reported trailing-twelve-month revenue of about £598M (latest available figure, as of Aug 20, 2026).
What is the net profit margin of ELM?
The net profit margin of Elementis PLC is about -7.6%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Elementis PLC pay a dividend?
Elementis PLC currently shows a dividend yield of about 2.83% relative to its recent price (as of Aug 20, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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