AVIENT CORP (AVNT) Stock Fundamental Analysis
NYSE:AVNT - US05368V1061 - Common Stock
37.23 USD
-0.3 (-0.8%)
37.23 USD
0 (0%)
Overall AVNT gets a fundamental rating of 5 out of 10. We evaluated AVNT against 84 industry peers in the Chemicals industry. AVNT has a medium profitability rating, but doesn't score so well on its financial health evaluation. AVNT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AVNT was profitable.
AVNT had a positive operating cash flow in the past year.
In the past 5 years AVNT has always been profitable.
In the past 5 years AVNT always reported a positive cash flow from operatings.
1.2 Ratios
AVNT has a Return On Assets (1.94%) which is comparable to the rest of the industry.
AVNT has a better Return On Equity (5.04%) than 61.90% of its industry peers.
AVNT's Return On Invested Capital of 4.10% is in line compared to the rest of the industry. AVNT outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNT is in line with the industry average of 6.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 5.04% | ||
| ROIC | 4.1% |
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 better Profit Margin (3.65%) than 65.48% of its industry peers.
In the last couple of years the Profit Margin of AVNT has declined.
With a Operating Margin value of 8.31%, AVNT perfoms like the industry average, outperforming 51.19% 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 32.97%, AVNT is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
AVNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.31% | ||
| PM (TTM) | 3.65% | ||
| GM | 32.97% |
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
AVNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
AVNT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that AVNT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.79, AVNT is in line with its industry, outperforming 47.62% of the companies in the same industry.
The Debt to FCF ratio of AVNT is 13.49, which is on the high side as it means it would take AVNT, 13.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.49, AVNT is in line with its industry, outperforming 53.57% of the companies in the same industry.
AVNT has a Debt/Equity ratio of 0.86. This is a neutral value indicating AVNT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, AVNT is in line with its industry, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.48
WACC8.49%
2.3 Liquidity
AVNT has a Current Ratio of 2.03. This indicates that AVNT is financially healthy and has no problem in meeting its short term obligations.
AVNT has a Current ratio (2.03) which is in line with its industry peers.
A Quick Ratio of 1.50 indicates that AVNT should not have too much problems paying its short term obligations.
AVNT has a better Quick ratio (1.50) than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.45% over the past year.
Measured over the past 5 years, AVNT shows a small growth in Earnings Per Share. The EPS has been growing by 4.25% on average per year.
AVNT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.28%.
Measured over the past years, AVNT shows a small growth in Revenue. The Revenue has been growing by 2.51% on average per year.
EPS 1Y (TTM)3.45%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%5.26%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%1.98%
3.2 Future
AVNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.93% yearly.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y7.75%
EPS Next 2Y9.99%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year1.27%
Revenue Next 2Y2.57%
Revenue Next 3Y2.98%
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
Based on the Price/Earnings ratio of 13.79, the valuation of AVNT can be described as correct.
AVNT's Price/Earnings ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 77.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.17, AVNT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.57, the valuation of AVNT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVNT indicates a somewhat cheap valuation: AVNT is cheaper than 76.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, AVNT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, AVNT is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.75 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AVNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)3.24
EPS Next 2Y9.99%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 3.06%.
AVNT's Dividend Yield is a higher than the industry average which is at 3.54.
AVNT's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
81.08% of the earnings are spent on dividend by AVNT. This is not a sustainable payout ratio.
The dividend of AVNT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.08%
EPS Next 2Y9.99%
EPS Next 3Y10.93%
37.23
-0.3 (-0.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.69%
Inst Owner Change0.86%
Ins Owners0.52%
Ins Owner Change1.25%
Market Cap3.41B
Analysts81.43
Price Target43.22 (16.09%)
Short Float %1.63%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.03
Dividend Growth(5Y)5.71%
DP81.08%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.78%
Min EPS beat(2)-1.47%
Max EPS beat(2)-0.09%
EPS beat(4)1
Avg EPS beat(4)0.02%
Min EPS beat(4)-1.47%
Max EPS beat(4)1.85%
EPS beat(8)4
Avg EPS beat(8)2.25%
EPS beat(12)7
Avg EPS beat(12)6.9%
EPS beat(16)11
Avg EPS beat(16)5.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.22%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.8%
Revenue beat(16)4
Avg Revenue beat(16)-3.08%
PT rev (1m)-1.74%
PT rev (3m)-5.31%
EPS NQ rev (1m)3.51%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)1.22%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 11.57 | ||
| P/S | 1.05 | ||
| P/FCF | 22.75 | ||
| P/OCF | 13.34 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.92 |
EPS(TTM)2.7
EY7.25%
EPS(NY)3.22
Fwd EY8.64%
FCF(TTM)1.64
FCFY4.4%
OCF(TTM)2.79
OCFY7.49%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.78
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 5.04% | ||
| ROCE | 5.01% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.49% | ||
| ROICexgc | 13.49% | ||
| OM | 8.31% | ||
| PM (TTM) | 3.65% | ||
| GM | 32.97% | ||
| FCFM | 4.6% |
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-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 57.64% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.28% | ||
| Profit Quality | 125.99% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.79 |
F-Score5
WACC8.49%
ROIC/WACC0.48
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)3.45%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%5.26%
EPS Next Y7.75%
EPS Next 2Y9.99%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%1.98%
Revenue Next Year1.27%
Revenue Next 2Y2.57%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y-16.27%
EBIT growth 3Y5.57%
EBIT growth 5Y17.13%
EBIT Next Year61.5%
EBIT Next 3Y23.09%
EBIT Next 5YN/A
FCF growth 1Y0.13%
FCF growth 3Y0.93%
FCF growth 5Y-9.24%
OCF growth 1Y-4.34%
OCF growth 3Y3.18%
OCF growth 5Y-3.11%