AVIENT CORP (AVNT)
US05368V1061 - Common Stock
AVNT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. There are concerns on the financial health of AVNT while its profitability can be described as average. AVNT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVNT was profitable.
In the past year AVNT had a positive cash flow from operations.
Each year in the past 5 years AVNT has been profitable.
AVNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVNT's Return On Assets of 1.28% is on the low side compared to the rest of the industry. AVNT is outperformed by 60.71% of its industry peers.
The Return On Equity of AVNT (3.30%) is comparable to the rest of the industry.
AVNT has a Return On Invested Capital (4.21%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVNT is in line with the industry average of 7.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 3.3% | ||
| ROIC | 4.21% |
ROA(3y)5.81%
ROA(5y)7.63%
ROE(3y)15.46%
ROE(5y)22.02%
ROIC(3y)5.54%
ROIC(5y)5.49%
1.3 Margins
AVNT has a Profit Margin (2.44%) which is in line with its industry peers.
AVNT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.96%, AVNT is in line with its industry, outperforming 42.86% of the companies in the same industry.
AVNT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.10%, AVNT is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
In the last couple of years the Gross Margin of AVNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.96% | ||
| PM (TTM) | 2.44% | ||
| GM | 30.1% |
OM growth 3Y7.64%
OM growth 5Y5.76%
PM growth 3Y-15.97%
PM growth 5Y-15.37%
GM growth 3Y7.82%
GM growth 5Y6.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNT is destroying value.
AVNT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVNT has more shares outstanding
Compared to 1 year ago, AVNT has an improved debt to assets ratio.
2.2 Solvency
AVNT has an Altman-Z score of 1.86. This is not the best score and indicates that AVNT is in the grey zone with still only limited risk for bankruptcy at the moment.
AVNT's Altman-Z score of 1.86 is in line compared to the rest of the industry. AVNT outperforms 40.48% of its industry peers.
AVNT has a debt to FCF ratio of 25.30. This is a negative value and a sign of low solvency as AVNT would need 25.30 years to pay back of all of its debts.
AVNT has a Debt to FCF ratio (25.30) which is in line with its industry peers.
A Debt/Equity ratio of 0.89 indicates that AVNT is somewhat dependend on debt financing.
AVNT has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: AVNT underperforms 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 25.3 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.53
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.82 indicates that AVNT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.82, AVNT is in line with its industry, outperforming 41.67% of the companies in the same industry.
AVNT has a Quick Ratio of 1.37. This is a normal value and indicates that AVNT is financially healthy and should not expect problems in meeting its short term obligations.
AVNT's Quick ratio of 1.37 is in line compared to the rest of the industry. AVNT outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
AVNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.07%.
AVNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.59% yearly.
Looking at the last year, AVNT shows a very negative growth in Revenue. The Revenue has decreased by -33.00% in the last year.
The Revenue has been growing slightly by 1.75% on average over the past years.
EPS 1Y (TTM)-20.07%
EPS 3Y10.54%
EPS 5Y-0.59%
EPS growth Q2Q33.33%
Revenue 1Y (TTM)-33%
Revenue growth 3Y-1.03%
Revenue growth 5Y1.75%
Revenue growth Q2Q-9.03%
3.2 Future
Based on estimates for the next years, AVNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.92% on average per year.
AVNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y9.87%
EPS Next 2Y13.28%
EPS Next 3Y14.92%
EPS Next 5YN/A
Revenue Next Year2.88%
Revenue Next 2Y4.11%
Revenue Next 3Y4.71%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.70 indicates a rather expensive valuation of AVNT.
Based on the Price/Earnings ratio, AVNT is valued a bit cheaper than 61.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.06. AVNT is valued slightly cheaper when compared to this.
AVNT is valuated rather expensively with a Price/Forward Earnings ratio of 17.02.
61.90% of the companies in the same industry are more expensive than AVNT, based on the Price/Forward Earnings ratio.
AVNT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA ratio is in line with the industry average.
AVNT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.78 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as AVNT's earnings are expected to grow with 14.92% in the coming years.
PEG (NY)1.89
PEG (5Y)N/A
EPS Next 2Y13.28%
EPS Next 3Y14.92%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
AVNT's Dividend Yield is a higher than the industry average which is at 3.14.
Compared to an average S&P500 Dividend Yield of 2.41, AVNT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of AVNT is nicely growing with an annual growth rate of 6.97%!
AVNT has been paying a dividend for at least 10 years, so it has a reliable track record.
AVNT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.97%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
117.75% of the earnings are spent on dividend by AVNT. This is not a sustainable payout ratio.
AVNT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP117.75%
EPS Next 2Y13.28%
EPS Next 3Y14.92%
AVIENT CORP
NYSE:AVNT (5/2/2024, 7:04:00 PM)
After market: 43.94 0 (0%)43.94
+0.96 (+2.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.02 | ||
| 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)1.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 3.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.96% | ||
| PM (TTM) | 2.44% | ||
| GM | 30.1% | ||
| 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.37 | ||
| 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)-20.07%
EPS 3Y10.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-33%
Revenue growth 3Y-1.03%
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