ADVANSIX INC (ASIX) Stock Fundamental Analysis
NYSE:ASIX - New York Stock Exchange, Inc. - US00773T1016 - Common Stock - Currency: USD
Taking everything into account, ASIX scores 6 out of 10 in our fundamental rating. ASIX was compared to 85 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ASIX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ASIX was profitable.
In the past year ASIX had a positive cash flow from operations.
In the past 5 years ASIX has always been profitable.
ASIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ASIX has a Return On Assets of 5.22%. This is in the better half of the industry: ASIX outperforms 77.65% of its industry peers.
With a decent Return On Equity value of 10.69%, ASIX is doing good in the industry, outperforming 74.12% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.56%, ASIX is doing good in the industry, outperforming 70.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ASIX is above the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 10.69% | ||
| ROIC | 7.56% |
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
ASIX has a better Profit Margin (5.45%) than 68.24% of its industry peers.
ASIX's Profit Margin has declined in the last couple of years.
The Operating Margin of ASIX (7.03%) is worse than 61.18% of its industry peers.
In the last couple of years the Operating Margin of ASIX has declined.
ASIX's Gross Margin of 13.05% is on the low side compared to the rest of the industry. ASIX is outperformed by 77.65% of its industry peers.
ASIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | 5.45% | ||
| GM | 13.05% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ASIX is still creating some value.
ASIX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ASIX has been reduced compared to 5 years ago.
ASIX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.24 indicates that ASIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASIX has a Altman-Z score (2.24) which is in line with its industry peers.
The Debt to FCF ratio of ASIX is 4.24, which is a neutral value as it means it would take ASIX, 4.24 years of fcf income to pay off all of its debts.
ASIX has a better Debt to FCF ratio (4.24) than 81.18% of its industry peers.
ASIX has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
ASIX has a better Debt to Equity ratio (0.27) than 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.83
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.19 indicates that ASIX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, ASIX is not doing good in the industry: 81.18% of the companies in the same industry are doing better.
ASIX has a Quick Ratio of 1.19. This is a bad value and indicates that ASIX is not financially healthy enough and could expect problems in meeting its short term obligations.
ASIX has a Quick ratio of 0.56. This is amonst the worse of the industry: ASIX underperforms 87.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
ASIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1542.86%, which is quite impressive.
ASIX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.81% yearly.
The Revenue has been growing slightly by 6.03% in the past year.
ASIX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.18% yearly.
EPS 1Y (TTM)1542.86%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%266.07%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%12.16%
3.2 Future
ASIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.65% yearly.
Based on estimates for the next years, ASIX will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y84.22%
EPS Next 2Y43.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.07%
Revenue Next 2Y3.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.70, the valuation of ASIX can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of ASIX indicates a rather cheap valuation: ASIX is cheaper than 96.47% of the companies listed in the same industry.
ASIX is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.72, the valuation of ASIX can be described as very cheap.
95.29% of the companies in the same industry are more expensive than ASIX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.19. ASIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 5.72 |
4.2 Price Multiples
ASIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASIX is cheaper than 95.29% of the companies in the same industry.
ASIX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ASIX is cheaper than 87.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.24 | ||
| EV/EBITDA | 4.45 |
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.
ASIX's earnings are expected to grow with 43.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)0.98
EPS Next 2Y43.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, ASIX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.53, ASIX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, ASIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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 20.19% of its income as dividend. This is a sustainable payout ratio.
DP20.19%
EPS Next 2Y43.65%
EPS Next 3YN/A
23.13
-0.41 (-1.74%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.72%
Inst Owner Change0%
Ins Owners3.25%
Ins Owner Change7.65%
Market Cap620.12M
Analysts82.86
Price Target35.19 (52.14%)
Short Float %2.14%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP20.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)67.02%
Min EPS beat(2)10.52%
Max EPS beat(2)123.53%
EPS beat(4)4
Avg EPS beat(4)48.23%
Min EPS beat(4)10.52%
Max EPS beat(4)123.53%
EPS beat(8)6
Avg EPS beat(8)-55.77%
EPS beat(12)8
Avg EPS beat(12)-36.51%
EPS beat(16)11
Avg EPS beat(16)-22.69%
Revenue beat(2)1
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-13.74%
Max Revenue beat(2)6.66%
Revenue beat(4)3
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-13.74%
Max Revenue beat(4)6.66%
Revenue beat(8)5
Avg Revenue beat(8)-0.41%
Revenue beat(12)7
Avg Revenue beat(12)-1.67%
Revenue beat(16)10
Avg Revenue beat(16)-0.67%
PT rev (1m)0%
PT rev (3m)-8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 5.72 | ||
| P/S | 0.4 | ||
| P/FCF | 12.24 | ||
| P/OCF | 3.39 | ||
| P/B | 0.78 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 4.45 |
EPS(TTM)3.45
EY14.92%
EPS(NY)4.04
Fwd EY17.49%
FCF(TTM)1.89
FCFY8.17%
OCF(TTM)6.83
OCFY29.52%
SpS58.13
BVpS29.63
TBVpS25.95
PEG (NY)0.08
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 10.69% | ||
| ROCE | 8.6% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 8.25% | ||
| OM | 7.03% | ||
| PM (TTM) | 5.45% | ||
| GM | 13.05% | ||
| FCFM | 3.25% |
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%
ROICexcg growth 3Y-35.6%
ROICexcg 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-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.24 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 173.63% | ||
| Cap/Sales | 8.49% | ||
| Interest Coverage | 12.43 | ||
| Cash Conversion | 98.49% | ||
| Profit Quality | 59.68% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.24 |
F-Score7
WACC9.06%
ROIC/WACC0.83
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)1542.86%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%266.07%
EPS Next Y84.22%
EPS Next 2Y43.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%12.16%
Revenue Next Year2.07%
Revenue Next 2Y3.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3044.12%
EBIT growth 3Y-32.45%
EBIT growth 5Y-3.69%
EBIT Next Year232.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.91%
FCF growth 3Y-78.15%
FCF growth 5YN/A
OCF growth 1Y-19%
OCF growth 3Y-14.78%
OCF growth 5Y2.38%