ADVANSIX INC (ASIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASIX - US00773T1016 - Common Stock
17.82 USD
+1.16 (+6.96%)
17.82 USD
0 (0%)
ASIX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While ASIX is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
ASIX had a positive operating cash flow in the past year.
ASIX had positive earnings in each of the past 5 years.
ASIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ASIX (3.11%) is better than 69.88% of its industry peers.
Looking at the Return On Equity, with a value of 6.41%, ASIX is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
With a Return On Invested Capital value of 3.30%, ASIX perfoms like the industry average, outperforming 49.40% 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 6.10%.
The last Return On Invested Capital (3.30%) for ASIX is well below the 3 year average (9.21%), which needs to be investigated, but indicates that ASIX had better years and this may not be a problem.
| 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
ASIX's Profit Margin of 3.52% is fine compared to the rest of the industry. ASIX outperforms 67.47% of its industry peers.
In the last couple of years the Profit Margin of ASIX has declined.
With a Operating Margin value of 3.41%, ASIX is not doing good in the industry: 65.06% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ASIX has declined.
With a Gross Margin value of 9.98%, ASIX is not doing good in the industry: 80.72% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASIX is destroying 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.
Compared to 1 year ago, ASIX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.93 indicates that ASIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASIX has a Altman-Z score (1.93) which is in line with its industry peers.
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 comparable to the rest of the industry.
A Debt/Equity ratio of 0.31 indicates that ASIX is not too dependend on debt financing.
The Debt to Equity ratio of ASIX (0.31) is better than 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2314.81 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.26
WACC12.81%
2.3 Liquidity
A Current Ratio of 1.36 indicates that ASIX should not have too much problems paying its short term obligations.
The Current ratio of ASIX (1.36) is worse than 80.72% of its industry peers.
ASIX has a Quick Ratio of 1.36. This is a bad value and indicates that ASIX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, ASIX is not doing good in the industry: 83.13% 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.
The Earnings Per Share has been growing slightly by 6.81% on average over the past years.
The Revenue has decreased by -5.05% in the past year.
The Revenue has been growing slightly by 3.18% on average over the past years.
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.
The Revenue is expected to grow by 2.01% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.62 indicates a rather cheap valuation of ASIX.
Based on the Price/Earnings ratio, ASIX is valued cheaper than 92.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. ASIX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.54, the valuation of ASIX can be described as very cheap.
ASIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASIX is cheaper than 98.80% of the companies in the same industry.
ASIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 4.54 |
4.2 Price Multiples
92.77% of the companies in the same industry are more expensive than ASIX, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ASIX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4431.9 | ||
| EV/EBITDA | 5.23 |
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 41.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)1.12
EPS Next 2Y41.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ASIX has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.47, ASIX pays a better dividend. On top of this ASIX pays more dividend than 81.93% 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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
32.72% of the earnings are spent on dividend by ASIX. This is a low number and sustainable payout ratio.
DP32.72%
EPS Next 2Y41.55%
EPS Next 3YN/A
17.82
+1.16 (+6.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.92%
Inst Owner Change0%
Ins Owners3.22%
Ins Owner Change0.19%
Market Cap478.65M
Revenue(TTM)1.49B
Net Income(TTM)52.43M
Analysts82.86
Price Target21.42 (20.2%)
Short Float %4.59%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP32.72%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)0%
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 | 7.62 | ||
| Fwd PE | 4.54 | ||
| P/S | 0.32 | ||
| P/FCF | 4431.9 | ||
| P/OCF | 3.88 | ||
| P/B | 0.58 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.34
EY13.13%
EPS(NY)3.93
Fwd EY22.04%
FCF(TTM)0
FCFY0.02%
OCF(TTM)4.59
OCFY25.76%
SpS55.52
BVpS30.46
TBVpS26.85
PEG (NY)0.14
PEG (5Y)1.12
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
WACC12.81%
ROIC/WACC0.26
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
Can you provide the ChartMill fundamental rating for ADVANSIX INC?
ChartMill assigns a fundamental rating of 5 / 10 to ASIX.
What is the valuation status for 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 valuation of ADVANSIX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADVANSIX INC (ASIX) is 7.62 and the Price/Book (PB) ratio is 0.58.
Can you provide the dividend sustainability for ASIX stock?
The dividend rating of ADVANSIX INC (ASIX) is 5 / 10 and the dividend payout ratio is 32.72%.