AVIENT CORP (AVNT) Stock Fundamental Analysis
NYSE:AVNT - New York Stock Exchange, Inc. - US05368V1061 - Common Stock - Currency: USD
Overall AVNT gets a fundamental rating of 5 out of 10. We evaluated AVNT against 85 industry peers in the Chemicals industry. While AVNT has a great profitability rating, there are quite some concerns on its financial health. AVNT is not valued too expensively and it also shows a decent growth rate. AVNT also has an excellent dividend rating.
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.
AVNT had positive earnings in each of the past 5 years.
In the past 5 years AVNT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.92%, AVNT is doing good in the industry, outperforming 62.35% of the companies in the same industry.
AVNT has a better Return On Equity (7.33%) than 65.88% of its industry peers.
With a Return On Invested Capital value of 5.89%, AVNT perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
AVNT had an Average Return On Invested Capital over the past 3 years of 5.06%. This is in line with the industry average of 7.03%.
The last Return On Invested Capital (5.89%) for AVNT is above the 3 year average (5.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.33% | ||
| ROIC | 5.89% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)5.06%
ROIC(5y)5.26%
1.3 Margins
AVNT has a Profit Margin of 5.23%. This is in the better half of the industry: AVNT outperforms 67.06% of its industry peers.
AVNT's Profit Margin has declined in the last couple of years.
AVNT has a Operating Margin of 11.24%. This is comparable to the rest of the industry: AVNT outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of AVNT has grown nicely.
AVNT has a Gross Margin of 33.69%. This is in the better half of the industry: AVNT outperforms 64.71% of its industry peers.
In the last couple of years the Gross Margin of AVNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.24% | ||
| PM (TTM) | 5.23% | ||
| GM | 33.69% |
OM growth 3Y6.37%
OM growth 5Y14.26%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y4.52%
GM growth 5Y7.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNT is destroying value.
The number of shares outstanding for AVNT has been increased compared to 1 year ago.
AVNT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AVNT is higher compared to a year ago.
2.2 Solvency
AVNT has an Altman-Z score of 1.93. 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 has a Altman-Z score (1.93) which is in line with its industry peers.
The Debt to FCF ratio of AVNT is 15.32, which is on the high side as it means it would take AVNT, 15.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AVNT (15.32) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.89 indicates that AVNT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, AVNT is not doing good in the industry: 62.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.69
WACC8.59%
2.3 Liquidity
AVNT has a Current Ratio of 1.88. 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 Current ratio of 1.88 is in line compared to the rest of the industry. AVNT outperforms 45.88% of its industry peers.
AVNT has a Quick Ratio of 1.42. This is a normal value and indicates that AVNT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.42, AVNT is doing good in the industry, outperforming 67.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.26% over the past year.
The Earnings Per Share has been growing slightly by 4.25% on average over the past years.
AVNT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.11%.
AVNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.51% yearly.
EPS 1Y (TTM)7.26%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%0%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-0.29%
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 10.27% on average per year.
Based on estimates for the next years, AVNT will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y7.04%
EPS Next 2Y9.68%
EPS Next 3Y10.27%
EPS Next 5YN/A
Revenue Next Year0.97%
Revenue Next 2Y2.52%
Revenue Next 3Y2.82%
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
A Price/Earnings ratio of 13.58 indicates a correct valuation of AVNT.
AVNT's Price/Earnings ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 70.59% of the companies in the same industry.
AVNT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.29, the valuation of AVNT can be described as reasonable.
Based on the Price/Forward Earnings ratio, AVNT is valued a bit cheaper than 69.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. AVNT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 61.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AVNT is valued a bit cheaper than the industry average as 63.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.51 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AVNT may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)3.19
EPS Next 2Y9.68%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, AVNT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.77, AVNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, AVNT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
The dividend of AVNT has a limited annual growth rate of 5.71%.
AVNT has paid a dividend for at least 10 years, which is a reliable track record.
AVNT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.71%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
55.46% of the earnings are spent on dividend by AVNT. This is a bit on the high side, but may be sustainable.
AVNT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.46%
EPS Next 2Y9.68%
EPS Next 3Y10.27%
36.13
-0.43 (-1.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.08%
Inst Owner Change2.63%
Ins Owners0.5%
Ins Owner Change1.78%
Market Cap3.31B
Analysts81.43
Price Target45.65 (26.35%)
Short Float %1.95%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend1.03
Dividend Growth(5Y)5.71%
DP55.46%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-0.22%
Max EPS beat(2)1.85%
EPS beat(4)3
Avg EPS beat(4)3.32%
Min EPS beat(4)-0.22%
Max EPS beat(4)8.18%
EPS beat(8)6
Avg EPS beat(8)4.24%
EPS beat(12)9
Avg EPS beat(12)7.49%
EPS beat(16)13
Avg EPS beat(16)7.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)0.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.22%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)4
Avg Revenue beat(12)1.25%
Revenue beat(16)6
Avg Revenue beat(16)-2.11%
PT rev (1m)-15.37%
PT rev (3m)-19.47%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-3.07%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 11.29 | ||
| P/S | 1.02 | ||
| P/FCF | 24.51 | ||
| P/OCF | 12.88 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.95 |
EPS(TTM)2.66
EY7.36%
EPS(NY)3.2
Fwd EY8.86%
FCF(TTM)1.47
FCFY4.08%
OCF(TTM)2.81
OCFY7.77%
SpS35.4
BVpS25.28
TBVpS-8.7
PEG (NY)1.93
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.33% | ||
| ROCE | 7.21% | ||
| ROIC | 5.89% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 21.24% | ||
| OM | 11.24% | ||
| PM (TTM) | 5.23% | ||
| GM | 33.69% | ||
| FCFM | 4.16% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)5.06%
ROIC(5y)5.26%
ROICexc(3y)5.69%
ROICexc(5y)6.05%
ROICexgc(3y)19.27%
ROICexgc(5y)19.24%
ROCE(3y)6.19%
ROCE(5y)6.44%
ROICexcg growth 3Y1.47%
ROICexcg growth 5Y-2.8%
ROICexc growth 3Y-3.41%
ROICexc growth 5Y-3.57%
OM growth 3Y6.37%
OM growth 5Y14.26%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y4.52%
GM growth 5Y7.61%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.32 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 67.84% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.21% | ||
| Profit Quality | 79.59% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.93 |
F-Score7
WACC8.59%
ROIC/WACC0.69
Cap/Depr(3y)66.22%
Cap/Depr(5y)65.36%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.15%
Profit Quality(3y)76.61%
Profit Quality(5y)81.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.26%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%0%
EPS Next Y7.04%
EPS Next 2Y9.68%
EPS Next 3Y10.27%
EPS Next 5YN/A
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-0.29%
Revenue Next Year0.97%
Revenue Next 2Y2.52%
Revenue Next 3Y2.82%
Revenue Next 5YN/A
EBIT growth 1Y45.55%
EBIT growth 3Y5.57%
EBIT growth 5Y17.13%
EBIT Next Year60.7%
EBIT Next 3Y22.81%
EBIT Next 5YN/A
FCF growth 1Y64.11%
FCF growth 3Y0.93%
FCF growth 5Y-9.24%
OCF growth 1Y27.38%
OCF growth 3Y3.18%
OCF growth 5Y-3.11%