ADVANSIX INC (ASIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASIX - US00773T1016 - Common Stock
16.3 USD
-0.4 (-2.4%)
16.3 USD
0 (0%)
Overall ASIX gets a fundamental rating of 5 out of 10. We evaluated ASIX against 82 industry peers in the Chemicals industry. There are concerns on the financial health of ASIX while its profitability can be described as average. ASIX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ASIX was profitable.
ASIX had a positive operating cash flow in the past year.
ASIX had positive earnings in each of the past 5 years.
Each year in the past 5 years ASIX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.11%, ASIX is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
With a decent Return On Equity value of 6.41%, ASIX is doing good in the industry, outperforming 70.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.30%, ASIX is in line with its industry, outperforming 48.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASIX is above the industry average of 6.05%.
The 3 year average ROIC (9.21%) for ASIX is well above the current ROIC(3.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 6.41% | ||
| ROIC | 3.3% |
ROA(3y)5.97%
ROA(5y)6.44%
ROE(3y)12.12%
ROE(5y)14%
ROIC(3y)9.21%
ROIC(5y)10.01%
1.3 Margins
Looking at the Profit Margin, with a value of 3.52%, ASIX is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
In the last couple of years the Profit Margin of ASIX has declined.
ASIX has a Operating Margin of 3.41%. This is in the lower half of the industry: ASIX underperforms 65.85% of its industry peers.
ASIX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 9.98%, ASIX is doing worse than 80.49% of the companies in the same industry.
ASIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.41% | ||
| PM (TTM) | 3.52% | ||
| GM | 9.98% |
OM growth 3Y-30.05%
OM growth 5Y-6.66%
PM growth 3Y-29.49%
PM growth 5Y-1.78%
GM growth 3Y-14.76%
GM growth 5Y-2.25%
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.
The number of shares outstanding for ASIX remains at a similar level compared to 1 year ago.
ASIX has less shares outstanding than it did 5 years ago.
ASIX has a worse debt/assets ratio than last year.
2.2 Solvency
ASIX has an Altman-Z score of 1.93. 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.
Looking at the Altman-Z score, with a value of 1.93, ASIX is in line with its industry, outperforming 53.66% of the companies in the same industry.
The Debt to FCF ratio of ASIX is 2314.81, which is on the high side as it means it would take ASIX, 2314.81 years of fcf income to pay off all of its debts.
ASIX has a Debt to FCF ratio (2314.81) which is in line with its industry peers.
ASIX has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, ASIX is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2314.81 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.37
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.36 indicates that ASIX should not have too much problems paying its short term obligations.
ASIX's Current ratio of 1.36 is on the low side compared to the rest of the industry. ASIX is outperformed by 81.71% of its industry peers.
A Quick Ratio of 0.74 indicates that ASIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, ASIX is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
ASIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.20%, which is quite impressive.
Measured over the past 5 years, ASIX shows a small growth in Earnings Per Share. The EPS has been growing by 6.81% on average per year.
The Revenue has decreased by -5.05% in the past year.
Measured over the past years, ASIX shows a small growth in Revenue. The Revenue has been growing by 3.18% on average per year.
EPS 1Y (TTM)32.2%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%-90.91%
Revenue 1Y (TTM)-5.05%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-5.96%
3.2 Future
Based on estimates for the next years, ASIX will show a very strong growth in Earnings Per Share. The EPS will grow by 41.55% on average per year.
Based on estimates for the next years, ASIX will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y56.12%
EPS Next 2Y41.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.5%
Revenue Next 2Y2.01%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.97, the valuation of ASIX can be described as very cheap.
Based on the Price/Earnings ratio, ASIX is valued cheaper than 92.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of ASIX to the average of the S&P500 Index (26.54), we can say ASIX is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.15, the valuation of ASIX can be described as very cheap.
Based on the Price/Forward Earnings ratio, ASIX is valued cheaply inside the industry as 98.78% of the companies are valued more expensively.
ASIX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 4.15 |
4.2 Price Multiples
ASIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASIX is cheaper than 95.12% of the companies in the same industry.
ASIX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4053.87 | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
ASIX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ASIX's earnings are expected to grow with 41.55% in the coming years.
PEG (NY)0.12
PEG (5Y)1.02
EPS Next 2Y41.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ASIX has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of ASIX has falen by -24.08%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.74, ASIX pays a better dividend. On top of this ASIX pays more dividend than 81.71% of the companies listed in the same industry.
ASIX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
ASIX has been paying a dividend for over 5 years, so it has already some track record.
ASIX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ASIX pays out 32.72% of its income as dividend. This is a sustainable payout ratio.
DP32.72%
EPS Next 2Y41.55%
EPS Next 3YN/A
16.3
-0.4 (-2.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.75%
Inst Owner Change-0.48%
Ins Owners3.21%
Ins Owner Change2.06%
Market Cap437.82M
Revenue(TTM)1.49B
Net Income(TTM)52.43M
Analysts82.86
Price Target21.42 (31.41%)
Short Float %4.52%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP32.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.58%
Min EPS beat(2)-80.39%
Max EPS beat(2)-0.76%
EPS beat(4)2
Avg EPS beat(4)13.22%
Min EPS beat(4)-80.39%
Max EPS beat(4)123.53%
EPS beat(8)5
Avg EPS beat(8)17.71%
EPS beat(12)7
Avg EPS beat(12)-44.28%
EPS beat(16)9
Avg EPS beat(16)-31.2%
Revenue beat(2)1
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-7.25%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-3.44%
Min Revenue beat(4)-13.74%
Max Revenue beat(4)6.66%
Revenue beat(8)5
Avg Revenue beat(8)0.5%
Revenue beat(12)6
Avg Revenue beat(12)-2.55%
Revenue beat(16)9
Avg Revenue beat(16)-1.71%
PT rev (1m)-25%
PT rev (3m)-39.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 4.15 | ||
| P/S | 0.29 | ||
| P/FCF | 4053.87 | ||
| P/OCF | 3.55 | ||
| P/B | 0.54 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)2.34
EY14.36%
EPS(NY)3.93
Fwd EY24.09%
FCF(TTM)0
FCFY0.02%
OCF(TTM)4.59
OCFY28.16%
SpS55.52
BVpS30.46
TBVpS26.85
PEG (NY)0.12
PEG (5Y)1.02
Graham Number40.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 6.41% | ||
| ROCE | 3.76% | ||
| ROIC | 3.3% | ||
| ROICexc | 3.36% | ||
| ROICexgc | 3.63% | ||
| OM | 3.41% | ||
| PM (TTM) | 3.52% | ||
| GM | 9.98% | ||
| FCFM | 0.01% |
ROA(3y)5.97%
ROA(5y)6.44%
ROE(3y)12.12%
ROE(5y)14%
ROIC(3y)9.21%
ROIC(5y)10.01%
ROICexc(3y)9.46%
ROICexc(5y)10.22%
ROICexgc(3y)10.45%
ROICexgc(5y)10.9%
ROCE(3y)10.48%
ROCE(5y)11.39%
ROICexgc growth 3Y-35.6%
ROICexgc growth 5Y-7.34%
ROICexc growth 3Y-37.02%
ROICexc growth 5Y-8.61%
OM growth 3Y-30.05%
OM growth 5Y-6.66%
PM growth 3Y-29.49%
PM growth 5Y-1.78%
GM growth 3Y-14.76%
GM growth 5Y-2.25%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2314.81 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 158.06% | ||
| Cap/Sales | 8.26% | ||
| Interest Coverage | 6.89 | ||
| Cash Conversion | 95.71% | ||
| Profit Quality | 0.21% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.93 |
F-Score6
WACC8.87%
ROIC/WACC0.37
Cap/Depr(3y)150.48%
Cap/Depr(5y)134.95%
Cap/Sales(3y)6.8%
Cap/Sales(5y)6.19%
Profit Quality(3y)43.2%
Profit Quality(5y)61.64%
High Growth Momentum
Growth
EPS 1Y (TTM)32.2%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%-90.91%
EPS Next Y56.12%
EPS Next 2Y41.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.05%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-5.96%
Revenue Next Year-0.5%
Revenue Next 2Y2.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.3%
EBIT growth 3Y-32.45%
EBIT growth 5Y-3.69%
EBIT Next Year199.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-99.64%
FCF growth 3Y-78.15%
FCF growth 5YN/A
OCF growth 1Y-2.91%
OCF growth 3Y-14.78%
OCF growth 5Y2.38%
ADVANSIX INC / ASIX FAQ
What is the fundamental rating for ASIX stock?
ChartMill assigns a fundamental rating of 5 / 10 to ASIX.
What is the valuation status of ADVANSIX INC (ASIX) stock?
ChartMill assigns a valuation rating of 8 / 10 to ADVANSIX INC (ASIX). This can be considered as Undervalued.
Can you provide the profitability details for ADVANSIX INC?
ADVANSIX INC (ASIX) has a profitability rating of 5 / 10.
What is the expected EPS growth for ADVANSIX INC (ASIX) stock?
The Earnings per Share (EPS) of ADVANSIX INC (ASIX) is expected to grow by 56.12% in the next year.
Can you provide the dividend sustainability for ASIX stock?
The dividend rating of ADVANSIX INC (ASIX) is 6 / 10 and the dividend payout ratio is 32.72%.