AVIENT CORP (AVNT) Stock Fundamental Analysis
NYSE:AVNT - New York Stock Exchange, Inc. - US05368V1061 - Common Stock - Currency: USD
AVNT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While AVNT is still in line with the averages on profitability rating, there are concerns on its financial health. AVNT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AVNT had positive earnings in the past year.
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 has a Return On Assets of 1.72%. This is comparable to the rest of the industry: AVNT outperforms 56.47% of its industry peers.
With a Return On Equity value of 4.35%, AVNT perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
AVNT has a Return On Invested Capital (4.26%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AVNT is in line with the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.35% | ||
| ROIC | 4.26% |
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's Profit Margin of 3.09% is in line compared to the rest of the industry. AVNT outperforms 58.82% of its industry peers.
In the last couple of years the Profit Margin of AVNT has declined.
AVNT has a Operating Margin (8.25%) which is comparable to the rest of the industry.
AVNT's Operating Margin has improved in the last couple of years.
AVNT's Gross Margin of 33.13% is fine compared to the rest of the industry. AVNT outperforms 63.53% of its industry peers.
AVNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.25% | ||
| PM (TTM) | 3.09% | ||
| GM | 33.13% |
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.
The debt/assets ratio for AVNT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.83 indicates that AVNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.83, AVNT perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
AVNT has a debt to FCF ratio of 14.94. This is a negative value and a sign of low solvency as AVNT would need 14.94 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.94, AVNT perfoms like the industry average, outperforming 57.65% of the companies in the same industry.
A Debt/Equity ratio of 0.90 indicates that AVNT is somewhat dependend on debt financing.
AVNT has a Debt to Equity ratio of 0.90. This is in the lower half of the industry: AVNT underperforms 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 14.94 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.5
WACC8.5%
2.3 Liquidity
A Current Ratio of 2.05 indicates that AVNT has no problem at all paying its short term obligations.
AVNT's Current ratio of 2.05 is in line compared to the rest of the industry. AVNT outperforms 52.94% of its industry peers.
A Quick Ratio of 1.51 indicates that AVNT should not have too much problems paying its short term obligations.
AVNT has a better Quick ratio (1.51) than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.26% 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.
Looking at the last year, AVNT shows a small growth in Revenue. The Revenue has grown by 3.58% in the last year.
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)3.58%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-0.29%
3.2 Future
The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
AVNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.81% yearly.
EPS Next Y6.46%
EPS Next 2Y9.69%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue Next Year0.7%
Revenue Next 2Y2.43%
Revenue Next 3Y2.81%
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 12.63, the valuation of AVNT can be described as correct.
Based on the Price/Earnings ratio, AVNT is valued cheaper than 81.18% of the companies in the same industry.
AVNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.51.
With a Price/Forward Earnings ratio of 10.50, 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 74.12% of the companies listed in the same industry.
AVNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 10.5 |
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 67.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.2 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AVNT does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.96
PEG (5Y)2.97
EPS Next 2Y9.69%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, AVNT pays a bit more dividend than its industry peers.
AVNT's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
95.30% 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.
DP95.3%
EPS Next 2Y9.69%
EPS Next 3Y10.8%
33.59
-0.62 (-1.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.51%
Inst Owner Change1.08%
Ins Owners0.51%
Ins Owner Change2.34%
Market Cap3.07B
Analysts81.43
Price Target43.99 (30.96%)
Short Float %2%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend1.03
Dividend Growth(5Y)5.71%
DP95.3%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.85%
Min EPS beat(2)-1.47%
Max EPS beat(2)-0.22%
EPS beat(4)2
Avg EPS beat(4)0.91%
Min EPS beat(4)-1.47%
Max EPS beat(4)3.49%
EPS beat(8)5
Avg EPS beat(8)2.54%
EPS beat(12)8
Avg EPS beat(12)7.19%
EPS beat(16)12
Avg EPS beat(16)6.08%
Revenue beat(2)0
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-2.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.22%
Revenue beat(8)1
Avg Revenue beat(8)-2.1%
Revenue beat(12)3
Avg Revenue beat(12)1.01%
Revenue beat(16)5
Avg Revenue beat(16)-2.57%
PT rev (1m)0%
PT rev (3m)-18.44%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-2.2%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 10.5 | ||
| P/S | 0.95 | ||
| P/FCF | 22.2 | ||
| P/OCF | 12.37 | ||
| P/B | 1.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.46 |
EPS(TTM)2.66
EY7.92%
EPS(NY)3.2
Fwd EY9.53%
FCF(TTM)1.51
FCFY4.5%
OCF(TTM)2.71
OCFY8.08%
SpS35.38
BVpS25.11
TBVpS-9.29
PEG (NY)1.96
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.35% | ||
| ROCE | 5.22% | ||
| ROIC | 4.26% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 14.45% | ||
| OM | 8.25% | ||
| PM (TTM) | 3.09% | ||
| GM | 33.13% | ||
| FCFM | 4.28% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 14.94 | ||
| Debt/EBITDA | 4.6 | ||
| Cap/Depr | 60.71% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.44% | ||
| Profit Quality | 138.64% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.83 |
F-Score6
WACC8.5%
ROIC/WACC0.5
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 Y6.46%
EPS Next 2Y9.69%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue 1Y (TTM)3.58%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-0.29%
Revenue Next Year0.7%
Revenue Next 2Y2.43%
Revenue Next 3Y2.81%
Revenue Next 5YN/A
EBIT growth 1Y-8.31%
EBIT growth 3Y5.57%
EBIT growth 5Y17.13%
EBIT Next Year60.7%
EBIT Next 3Y22.81%
EBIT Next 5YN/A
FCF growth 1Y-43.42%
FCF growth 3Y0.93%
FCF growth 5Y-9.24%
OCF growth 1Y-30.45%
OCF growth 3Y3.18%
OCF growth 5Y-3.11%