# Elementis (ELM.LSE)

Canonical: https://gigainvestors.com/s/ELM.LSE

Analysis as of: 2026-10-16T07:42:48.390Z. Financial observations: FY2016–FY2025.

Listing currency: GBX. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 183.40 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 4

- Operating margin variation: 0.96×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.12×

- FY2018: 0.10×

- FY2019: 0.11×

- FY2020: -0.04×

- FY2021: 0.02×

- FY2022: -0.06×

- FY2023: 0.08×

- FY2024: 0.16×

- FY2025: 0.18×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.5%

- ROIC, second-lowest year: -3.7%

- Typical minus recent gross margin: -8.1 pp

- Typical gross margin (annual median): 38.8%

- Recent gross margin (lower of latest and 3-year median): 46.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.5%

- ROIC including acquisitions, ten-year median: 1.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 28.8%

- FY2017: 15.3%

- FY2018: 9.5%

- FY2019: 11.6%

- FY2020: -3.7%

- FY2021: 1.3%

- FY2022: -4.8%

- FY2023: 7.8%

- FY2024: 16.1%

- FY2025: 21.5%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$71M

- Net income, five-year total: -$115M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 0.9 pp

- Working capital / revenue, final three-year average: 27.1%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $9.7M

- FY2022: -$35M

- FY2023: $37M

- FY2024: -$40M

- FY2025: -$42M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.3% vs 16.1%

- Per-share earnings: 0.08 to -0.08 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: -$684M

- Cumulative retained earnings: -$245M

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.16

- Per-share value, starting three-year median: $0.08

- Per-share value, ending three-year median: -$0.08

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 1.1%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: $91M

- ROIC, first three-year median: 15.3%

- ROIC, last three-year median: 16.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.23

- FY2018: $0.07

- FY2019: $0.08

- FY2020: -$0.12

- FY2021: $0.00

- FY2022: -$0.09

- FY2023: $0.05

- FY2024: -$0.08

- FY2025: -$0.08

### accounting: pass

- Sloan accruals: -10.7%

- Receivables to sales index (DSRI): 0.89×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 9.3%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.94×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.4%

- FY2017: 0.2%

- FY2018: -2.2%

- FY2019: -5.1%

- FY2020: -9.5%

- FY2021: -3.5%

- FY2022: -7.9%

- FY2023: -3.3%

- FY2024: -11.3%

- FY2025: -10.7%

## Holders

## Price story

Up 55% since Oct 2023 · sales -1%

Story as of 2026-10-16T10:00:12.503Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -1%; source https://filings.xbrl.org/549300LQIH685LI2ML36/2025-12-31/ESEF/GB/0/549300LQIH685LI2ML36-2025-12-31/reports/549300LQIH685LI2ML36-2025-12-31-T01.html; observed 2026-04-07.

- FY2016: $660M 

- FY2017: $783M 

- FY2018: $822M 

- FY2019: $874M 

- FY2020: $751M 

- FY2021: $709M 

- FY2022: $736M 

- FY2023: $713M 

- FY2024: $604M 

- FY2025: $598M 

### Gross margin · FY2025

gross margin 46.9%; source https://filings.xbrl.org/549300LQIH685LI2ML36/2025-12-31/ESEF/GB/0/549300LQIH685LI2ML36-2025-12-31/reports/549300LQIH685LI2ML36-2025-12-31-T01.html; observed 2026-04-07.

- FY2016: 36.2% 

- FY2017: 37.7% 

- FY2018: 37.2% 

- FY2019: 36.8% 

- FY2020: 34.2% 

- FY2021: 40.7% 

- FY2022: 40.6% 

- FY2023: 39.9% 

- FY2024: 48.0% 

- FY2025: 46.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are USD 597.5 million.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2025-12-31 (filed 2026-04-07); FY2025: revenue 597500000; grossProfit 280100000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ELM.LSE: 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.

### Why customers stay

Margins ranged from 39.9% to 48% during 2023–25; it earns 10.5% on its capital.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2023-12-31 (filed 2026-04-07); FY2023: grossProfit / revenue = 39.9%.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2024-12-31 (filed 2026-04-07); FY2024: grossProfit / revenue = 48%.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2025-12-31 (filed 2026-04-07); FY2025: grossProfit / revenue = 46.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); 10-year return on capital observations [[2016,0.2879342105263158],[2017,0.1527502679528403],[2018,0.09460941987363584],[2019,0.11607686622320769],[2020,-0.03677862833932198],[2021,0.012947252444566864],[2022,-0.04778179713500217],[2023,0.07753874354274287],[2024,0.1610875106202209],[2025,0.2152027101971485]]; median 0.10534314304842177. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 41% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/549300LQIH685LI2ML36/2025-12-31/ESEF/GB/0/549300LQIH685LI2ML36-2025-12-31/reports/549300LQIH685LI2ML36-2025-12-31-T01.html (filed 2026-04-07); Gross margin observations: [[2021,0.407386523822949],[2022,0.405893536121673],[2023,0.3985141575553687]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 6 of 6 years; bought back USD 54.1 million of shares.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2016-12-31 (filed 2026-04-07); FY2016: growth capex 0; upkeep 35600000; owner earnings 60500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2017-12-31 (filed 2026-04-07); FY2017: growth capex 0; upkeep 44900000; owner earnings 69800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2018-12-31 (filed 2026-04-07); FY2018: growth capex 0; upkeep 51400000; owner earnings 32900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2019-12-31 (filed 2026-04-07); FY2019: growth capex 0; upkeep 48100000; owner earnings 59020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2021-12-31 (filed 2026-04-07); FY2021: growth capex 0; upkeep 53100000; owner earnings 9660000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2023-12-31 (filed 2026-04-07); FY2023: growth capex 0; upkeep 38200000; owner earnings 36760000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Dividend observations: [[2016,76200000],[2017,77800000],[2018,41900000],[2019,49300000],[2024,18800000],[2025,25300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/E3E.STU.json#2025-12-31 (filed 2026-04-07); FY2025: cash repurchases 54100000 USD.

### Are managers owners

Insiders own 4.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ELM.LSE SharesStats.PercentInsiders = 4.224 percentage points; cache date 2026-10-16.

### What the price says

The price is 2.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Closing price 183.4 GBX; reporting-to-trading FX 75.34943299551671; FY2025 annual sales per share 1.049714746913142; price multiple 2.3187185920342217. FY2025 cash earnings/share -0.07340097426950808. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 238.20 per share

- 2016-11: GBX 252.10 per share

- 2016-12: GBX 277.40 per share

- 2017-01: GBX 267.90 per share

- 2017-02: GBX 299.60 per share

- 2017-03: GBX 289.20 per share

- 2017-04: GBX 304.20 per share

- 2017-05: GBX 300.30 per share

- 2017-06: GBX 294.10 per share

- 2017-07: GBX 296.40 per share

- 2017-08: GBX 269.60 per share

- 2017-09: GBX 270.90 per share

- 2017-10: GBX 284.30 per share

- 2017-11: GBX 272.40 per share

- 2017-12: GBX 288.10 per share

- 2018-01: GBX 289.00 per share

- 2018-02: GBX 291.80 per share

- 2018-03: GBX 295.40 per share

- 2018-04: GBX 283.60 per share

- 2018-05: GBX 295.20 per share

- 2018-06: GBX 252.80 per share

- 2018-07: GBX 260.20 per share

- 2018-08: GBX 255.20 per share

- 2018-09: GBX 268.60 per share

- 2018-10: GBX 205.00 per share

- 2018-11: GBX 196.40 per share

- 2018-12: GBX 182.10 per share

- 2019-01: GBX 182.30 per share

- 2019-02: GBX 179.50 per share

- 2019-03: GBX 162.50 per share

- 2019-04: GBX 162.50 per share

- 2019-05: GBX 144.60 per share

- 2019-06: GBX 141.50 per share

- 2019-07: GBX 151.00 per share

- 2019-08: GBX 149.90 per share

- 2019-09: GBX 147.90 per share

- 2019-10: GBX 148.70 per share

- 2019-11: GBX 169.40 per share

- 2019-12: GBX 179.00 per share

- 2020-01: GBX 127.90 per share

- 2020-02: GBX 101.40 per share

- 2020-03: GBX 49.00 per share

- 2020-04: GBX 70.00 per share

- 2020-05: GBX 66.55 per share

- 2020-06: GBX 64.40 per share

- 2020-07: GBX 63.80 per share

- 2020-08: GBX 72.15 per share

- 2020-09: GBX 76.00 per share

- 2020-10: GBX 74.40 per share

- 2020-11: GBX 120.00 per share

- 2020-12: GBX 115.00 per share

- 2021-01: GBX 110.10 per share

- 2021-02: GBX 126.10 per share

- 2021-03: GBX 125.50 per share

- 2021-04: GBX 149.60 per share

- 2021-05: GBX 158.20 per share

- 2021-06: GBX 150.70 per share

- 2021-07: GBX 142.60 per share

- 2021-08: GBX 153.20 per share

- 2021-09: GBX 149.00 per share

- 2021-10: GBX 139.50 per share

- 2021-11: GBX 135.00 per share

- 2021-12: GBX 131.60 per share

- 2022-01: GBX 142.40 per share

- 2022-02: GBX 129.00 per share

- 2022-03: GBX 119.00 per share

- 2022-04: GBX 121.90 per share

- 2022-05: GBX 118.10 per share

- 2022-06: GBX 98.85 per share

- 2022-07: GBX 109.00 per share

- 2022-08: GBX 111.00 per share

- 2022-09: GBX 90.25 per share

- 2022-10: GBX 92.50 per share

- 2022-11: GBX 115.90 per share

- 2022-12: GBX 120.40 per share

- 2023-01: GBX 125.20 per share

- 2023-02: GBX 127.90 per share

- 2023-03: GBX 119.10 per share

- 2023-04: GBX 125.60 per share

- 2023-05: GBX 107.20 per share

- 2023-06: GBX 102.00 per share

- 2023-07: GBX 110.60 per share

- 2023-08: GBX 114.20 per share

- 2023-09: GBX 124.20 per share

- 2023-10: GBX 118.40 per share

- 2023-11: GBX 118.40 per share

- 2023-12: GBX 127.60 per share

- 2024-01: GBX 142.40 per share

- 2024-02: GBX 141.40 per share

- 2024-03: GBX 148.40 per share

- 2024-04: GBX 141.00 per share

- 2024-05: GBX 150.20 per share

- 2024-06: GBX 145.80 per share

- 2024-07: GBX 159.80 per share

- 2024-08: GBX 162.00 per share

- 2024-09: GBX 162.80 per share

- 2024-10: GBX 133.40 per share

- 2024-11: GBX 133.40 per share

- 2024-12: GBX 145.20 per share

- 2025-01: GBX 157.80 per share

- 2025-02: GBX 151.00 per share

- 2025-03: GBX 129.40 per share

- 2025-04: GBX 125.20 per share

- 2025-05: GBX 142.80 per share

- 2025-06: GBX 160.00 per share

- 2025-07: GBX 174.00 per share

- 2025-08: GBX 162.60 per share

- 2025-09: GBX 162.40 per share

- 2025-10: GBX 164.40 per share

- 2025-11: GBX 163.20 per share

- 2025-12: GBX 166.00 per share

- 2026-01: GBX 161.60 per share

- 2026-02: GBX 166.00 per share

- 2026-03: GBX 149.60 per share

- 2026-04: GBX 148.00 per share

- 2026-05: GBX 153.60 per share

- 2026-06: GBX 153.80 per share

- 2026-07: GBX 177.20 per share

- 2026-08: GBX 174.20 per share

- 2026-09: GBX 179.00 per share

- 2026-10: GBX 183.40 per share

## Annual estimated value (GBX per share)

- FY2020: low GBX 84.43 per share, central GBX 94.35 per share, high GBX 107.56 per share

- FY2021: low GBX 49.34 per share, central GBX 54.88 per share, high GBX 62.26 per share

- FY2022: low GBX 20.71 per share, central GBX 22.66 per share, high GBX 25.26 per share

- FY2023: low GBX 20.22 per share, central GBX 22.09 per share, high GBX 24.59 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300LQIH685LI2ML36/2025-12-31/ESEF/GB/0/549300LQIH685LI2ML36-2025-12-31/reports/549300LQIH685LI2ML36-2025-12-31-T01.html); period 2025-12-31, filed 2026-04-07.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.