ADVANSIX INC (ASIX)
US00773T1016 - Common Stock
Overall ASIX gets a fundamental rating of 4 out of 10. We evaluated ASIX against 84 industry peers in the Chemicals industry. Both the profitability and the financial health of ASIX get a neutral evaluation. Nothing too spectacular is happening here. ASIX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ASIX had positive earnings in the past year.
ASIX had a positive operating cash flow in the past year.
In the past 5 years ASIX has always been profitable.
Each year in the past 5 years ASIX had a positive operating cash flow.
1.2 Ratios
ASIX has a Return On Assets (3.65%) which is in line with its industry peers.
ASIX has a Return On Equity (7.39%) which is in line with its industry peers.
ASIX has a Return On Invested Capital of 4.74%. This is comparable to the rest of the industry: ASIX outperforms 52.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASIX is above the industry average of 7.41%.
The 3 year average ROIC (11.82%) for ASIX is well above the current ROIC(4.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 7.39% | ||
| ROIC | 4.74% |
ROA(3y)8.6%
ROA(5y)6.56%
ROE(3y)17.98%
ROE(5y)14.92%
ROIC(3y)11.82%
ROIC(5y)9.26%
1.3 Margins
The Profit Margin of ASIX (3.56%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ASIX has declined.
ASIX has a Operating Margin of 4.53%. This is in the lower half of the industry: ASIX underperforms 66.67% of its industry peers.
ASIX's Operating Margin has declined in the last couple of years.
ASIX's Gross Margin of 10.76% is on the low side compared to the rest of the industry. ASIX is outperformed by 84.52% of its industry peers.
In the last couple of years the Gross Margin of ASIX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.53% | ||
| PM (TTM) | 3.56% | ||
| GM | 10.76% |
OM growth 3Y-5.84%
OM growth 5Y-5.94%
PM growth 3Y-3.64%
PM growth 5Y-4.01%
GM growth 3Y-2.31%
GM growth 5Y-1.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ASIX is creating some value.
Compared to 1 year ago, ASIX has less shares outstanding
ASIX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ASIX is higher compared to a year ago.
2.2 Solvency
ASIX has an Altman-Z score of 2.33. This is not the best score and indicates that ASIX is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ASIX (2.33) is better than 60.71% of its industry peers.
The Debt to FCF ratio of ASIX is 16.93, which is on the high side as it means it would take ASIX, 16.93 years of fcf income to pay off all of its debts.
ASIX has a Debt to FCF ratio (16.93) which is in line with its industry peers.
ASIX has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
ASIX's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. ASIX outperforms 77.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 16.93 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.57
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ASIX should not have too much problems paying its short term obligations.
ASIX has a Current ratio of 1.17. This is amonst the worse of the industry: ASIX underperforms 86.90% of its industry peers.
A Quick Ratio of 0.58 indicates that ASIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, ASIX is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for ASIX have decreased strongly by -66.33% in the last year.
ASIX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.44% yearly.
ASIX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.18%.
The Revenue has been growing slightly by 0.24% on average over the past years.
EPS 1Y (TTM)-66.33%
EPS 3Y6.66%
EPS 5Y-1.44%
EPS growth Q2Q-108.47%
Revenue 1Y (TTM)-21.18%
Revenue growth 3Y9.82%
Revenue growth 5Y0.24%
Revenue growth Q2Q-5.42%
3.2 Future
ASIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.02% yearly.
ASIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
EPS Next Y-37.13%
EPS Next 2Y45.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.83%
Revenue Next 2Y6.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.94, which indicates a correct valuation of ASIX.
Compared to the rest of the industry, the Price/Earnings ratio of ASIX indicates a somewhat cheap valuation: ASIX is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.06. ASIX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 20.58, which indicates a rather expensive current valuation of ASIX.
The rest of the industry has a similar Price/Forward Earnings ratio as ASIX.
ASIX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 20.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASIX is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASIX is valued a bit more expensive than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.58 | ||
| EV/EBITDA | 5.78 |
4.3 Compensation for Growth
ASIX's earnings are expected to grow with 45.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, ASIX has a reasonable but not impressive dividend return.
ASIX's Dividend Yield is a higher than the industry average which is at 3.14.
ASIX's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
ASIX has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ASIX pays out 30.50% of its income as dividend. This is a sustainable payout ratio.
DP30.5%
EPS Next 2Y45.02%
EPS Next 3YN/A
ADVANSIX INC
NYSE:ASIX (5/2/2024, 7:04:00 PM)
After market: 25.75 0 (0%)25.75
+0.24 (+0.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap687.52M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 20.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 7.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.53% | ||
| PM (TTM) | 3.56% | ||
| GM | 10.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-66.33%
EPS 3Y6.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y-37.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.18%
Revenue growth 3Y9.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y