ADVANSIX INC (ASIX) Stock Fundamental Analysis
NYSE:ASIX - New York Stock Exchange, Inc. - US00773T1016 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ASIX. ASIX was compared to 85 industry peers in the Chemicals industry. ASIX has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on ASIX.
1. Profitability
1.1 Basic Checks
ASIX had positive earnings in the past year.
In the past year ASIX had a positive cash flow from operations.
ASIX had positive earnings in each of the past 5 years.
In the past 5 years ASIX always reported a positive cash flow from operatings.
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.
ASIX's Return On Equity of 10.69% is fine compared to the rest of the industry. ASIX outperforms 74.12% of its industry peers.
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.
ASIX had an Average Return On Invested Capital over the past 3 years of 9.21%. This is above the industry average of 6.85%.
| 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 Profit Margin of 5.45%. This is in the better half of the industry: ASIX outperforms 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.
ASIX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 13.05%, ASIX is doing worse than 77.65% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ASIX is destroying value.
ASIX has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.25 indicates that ASIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.25, ASIX is doing good in the industry, outperforming 61.18% of the companies in the same industry.
ASIX has a debt to FCF ratio of 4.24. This is a neutral value as ASIX would need 4.24 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.24, ASIX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that ASIX is not too dependend on debt financing.
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 | 2.25 |
ROIC/WACC0.77
WACC9.87%
2.3 Liquidity
ASIX has a Current Ratio of 1.19. This is a normal value and indicates that ASIX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ASIX (1.19) is worse than 81.18% of its industry peers.
A Quick Ratio of 0.56 indicates that ASIX may have some problems paying 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.
Looking at the last year, ASIX shows a small growth in Revenue. The Revenue has grown by 6.03% in the last year.
The Revenue has been growing slightly by 3.18% on average over the past years.
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.
ASIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.24% yearly.
EPS Next Y84.22%
EPS Next 2Y43.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.44%
Revenue Next 2Y3.24%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ASIX is valuated cheaply with a Price/Earnings ratio of 6.92.
Compared to the rest of the industry, the Price/Earnings ratio of ASIX indicates a rather cheap valuation: ASIX is cheaper than 95.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ASIX to the average of the S&P500 Index (26.52), we can say ASIX is valued rather cheaply.
The Price/Forward Earnings ratio is 5.90, which indicates a rather cheap valuation of ASIX.
ASIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASIX is cheaper than 94.12% of the companies in the same industry.
ASIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.9 |
4.2 Price Multiples
94.12% of the companies in the same industry are more expensive than ASIX, based on the Enterprise Value to EBITDA ratio.
ASIX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ASIX is cheaper than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.63 | ||
| EV/EBITDA | 4.51 |
4.3 Compensation for Growth
The 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 43.65% in the coming years.
PEG (NY)0.08
PEG (5Y)1.02
EPS Next 2Y43.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ASIX has a Yearly Dividend Yield of 2.66%.
ASIX's Dividend Yield is a higher than the industry average which is at 3.74.
ASIX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
20.19% of the earnings are spent on dividend by ASIX. This is a low number and sustainable payout ratio.
DP20.19%
EPS Next 2Y43.65%
EPS Next 3YN/A
23.87
+0.28 (+1.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.12%
Inst Owner Change1.01%
Ins Owners3.22%
Ins Owner Change5.24%
Market Cap639.95M
Analysts80
Price Target32.13 (34.6%)
Short Float %1.81%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)-4.55%
PT rev (3m)-20.25%
EPS NQ rev (1m)-16.38%
EPS NQ rev (3m)-36.53%
EPS NY rev (1m)-8.17%
EPS NY rev (3m)-15.81%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)-6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.9 | ||
| P/S | 0.41 | ||
| P/FCF | 12.63 | ||
| P/OCF | 3.5 | ||
| P/B | 0.81 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 4.51 |
EPS(TTM)3.45
EY14.45%
EPS(NY)4.04
Fwd EY16.94%
FCF(TTM)1.89
FCFY7.92%
OCF(TTM)6.83
OCFY28.6%
SpS58.13
BVpS29.63
TBVpS25.95
PEG (NY)0.08
PEG (5Y)1.02
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 | 2.25 |
F-Score7
WACC9.87%
ROIC/WACC0.77
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 Year1.44%
Revenue Next 2Y3.24%
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%