AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - NYSE:AVNT - US05368V1061 - Common Stock
29.7 USD
-0.47 (-1.56%)
29.7 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AVNT. AVNT was compared to 82 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. Finally AVNT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AVNT had positive earnings in the past year.
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 in line with its industry peers.
Looking at the Return On Equity, with a value of 5.04%, AVNT is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
With a Return On Invested Capital value of 4.10%, AVNT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
AVNT had an Average Return On Invested Capital over the past 3 years of 4.38%. This is in line with the industry average of 6.23%.
| 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)4.38%
ROIC(5y)4.85%
1.3 Margins
AVNT's Profit Margin of 3.65% is fine compared to the rest of the industry. AVNT outperforms 64.63% of its industry peers.
AVNT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.31%, AVNT is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNT has grown nicely.
AVNT has a Gross Margin of 32.70%. This is in the better half of the industry: AVNT outperforms 63.41% of its industry peers.
In the last couple of years the Gross Margin of AVNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.31% | ||
| PM (TTM) | 3.65% | ||
| GM | 32.7% |
OM growth 3Y2.89%
OM growth 5Y12%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y3.39%
GM growth 5Y6.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNT is destroying value.
Compared to 1 year ago, AVNT has more shares outstanding
The number of shares outstanding for AVNT has been increased compared to 5 years ago.
Compared to 1 year ago, AVNT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that AVNT is in the distress zone and has some risk of bankruptcy.
AVNT has a Altman-Z score of 1.69. This is comparable to the rest of the industry: AVNT outperforms 42.68% of its industry peers.
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.
AVNT has a Debt to FCF ratio (13.49) which is in line with its industry peers.
A Debt/Equity ratio of 0.86 indicates that AVNT is somewhat dependend on debt financing.
AVNT has a Debt to Equity ratio (0.86) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.51
WACC8.07%
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's Current ratio of 2.03 is in line compared to the rest of the industry. AVNT outperforms 50.00% of its industry peers.
AVNT has a Quick Ratio of 1.50. This is a normal value and indicates that AVNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.50, AVNT is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
| 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 2.23% 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 3.11%.
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)2.23%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%7.69%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-1.07%
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 9.35% on average per year.
The Revenue is expected to grow by 2.49% on average over the next years.
EPS Next Y7.28%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
EPS Next 5YN/A
Revenue Next Year1.15%
Revenue Next 2Y2.17%
Revenue Next 3Y2.49%
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
A Price/Earnings ratio of 10.80 indicates a reasonable valuation of AVNT.
79.27% of the companies in the same industry are more expensive than AVNT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AVNT to the average of the S&P500 Index (25.67), we can say AVNT is valued rather cheaply.
AVNT is valuated reasonably with a Price/Forward Earnings ratio of 9.43.
Based on the Price/Forward Earnings ratio, AVNT is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, AVNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AVNT is valued a bit cheaper than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 9.49 |
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)1.48
PEG (5Y)2.54
EPS Next 2Y8.83%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 3.65%. 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 4.06.
Compared to an average S&P500 Dividend Yield of 2.40, AVNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
The dividend of AVNT has a limited annual growth rate of 5.71%.
AVNT has been paying a dividend for at least 10 years, so it has 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 2Y8.83%
EPS Next 3Y9.35%
29.7
-0.47 (-1.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-0.67%
Ins Owners0.52%
Ins Owner Change1.31%
Market Cap2.72B
Revenue(TTM)3.24B
Net Income(TTM)118.90M
Analysts81.33
Price Target43.75 (47.31%)
Short Float %1.63%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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)0.03%
PT rev (3m)-0.55%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 9.43 | ||
| P/S | 0.84 | ||
| P/FCF | 18.15 | ||
| P/OCF | 10.65 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.49 |
EPS(TTM)2.75
EY9.26%
EPS(NY)3.15
Fwd EY10.61%
FCF(TTM)1.64
FCFY5.51%
OCF(TTM)2.79
OCFY9.39%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.48
PEG (5Y)2.54
Graham Number39.93
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 | 32.7% | ||
| FCFM | 4.6% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)4.38%
ROIC(5y)4.85%
ROICexc(3y)4.93%
ROICexc(5y)5.59%
ROICexgc(3y)16.68%
ROICexgc(5y)17.68%
ROCE(3y)5.36%
ROCE(5y)5.94%
ROICexgc growth 3Y-1.85%
ROICexgc growth 5Y-4.73%
ROICexc growth 3Y-6.57%
ROICexc growth 5Y-5.48%
OM growth 3Y2.89%
OM growth 5Y12%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y3.39%
GM growth 5Y6.91%
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 | 1.69 |
F-Score5
WACC8.07%
ROIC/WACC0.51
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)2.23%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%7.69%
EPS Next Y7.28%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
EPS Next 5YN/A
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-1.07%
Revenue Next Year1.15%
Revenue Next 2Y2.17%
Revenue Next 3Y2.49%
Revenue Next 5YN/A
EBIT growth 1Y-16.27%
EBIT growth 3Y2.11%
EBIT growth 5Y14.81%
EBIT Next Year60.91%
EBIT Next 3Y22.93%
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%
AVIENT CORP / AVNT FAQ
What is the fundamental rating for AVNT stock?
ChartMill assigns a fundamental rating of 5 / 10 to AVNT.
What is the valuation status of AVIENT CORP (AVNT) stock?
ChartMill assigns a valuation rating of 6 / 10 to AVIENT CORP (AVNT). This can be considered as Fairly Valued.
How profitable is AVIENT CORP (AVNT) stock?
AVIENT CORP (AVNT) has a profitability rating of 6 / 10.
What is the valuation of AVIENT CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AVIENT CORP (AVNT) is 10.8 and the Price/Book (PB) ratio is 1.15.
What is the earnings growth outlook for AVIENT CORP?
The Earnings per Share (EPS) of AVIENT CORP (AVNT) is expected to grow by 7.28% in the next year.