ADVANSIX INC (ASIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASIX - US00773T1016 - Common Stock
16.51 USD
-0.27 (-1.61%)
16.51 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ASIX. ASIX was compared to 83 industry peers in the Chemicals industry. There are concerns on the financial health of ASIX while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on ASIX.
1. Profitability
1.1 Basic Checks
- ASIX had positive earnings in the past year.
- In the past year ASIX had a positive cash flow from operations.
- In the past 5 years ASIX has always been profitable.
- In the past 5 years ASIX always reported a positive cash flow from operatings.
1.2 Ratios
- ASIX's Return On Assets of 3.11% is fine compared to the rest of the industry. ASIX outperforms 69.88% of its industry peers.
- ASIX has a Return On Equity of 6.41%. This is in the better half of the industry: ASIX outperforms 69.88% of its industry peers.
- The Return On Invested Capital of ASIX (3.30%) is comparable to the rest of the industry.
- ASIX had an Average Return On Invested Capital over the past 3 years of 9.21%. This is above the industry average of 6.11%.
- The last Return On Invested Capital (3.30%) for ASIX is well below the 3 year average (9.21%), which needs to be investigated, but indicates that ASIX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 6.41% | ||
| ROIC | 3.3% |
ROA(3y)5.97%
ROA(5y)6.44%
ROE(3y)12.12%
ROE(5y)14%
ROIC(3y)9.21%
ROIC(5y)10.01%
1.3 Margins
- The Profit Margin of ASIX (3.52%) is better than 66.27% of its industry peers.
- In the last couple of years the Profit Margin of ASIX has declined.
- ASIX's Operating Margin of 3.41% is on the low side compared to the rest of the industry. ASIX is outperformed by 65.06% of its industry peers.
- In the last couple of years the Operating Margin of ASIX has declined.
- ASIX has a Gross Margin of 9.98%. This is amonst the worse of the industry: ASIX underperforms 81.93% of its industry peers.
- In the last couple of years the Gross Margin of ASIX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.41% | ||
| PM (TTM) | 3.52% | ||
| GM | 9.98% |
OM growth 3Y-30.05%
OM growth 5Y-6.66%
PM growth 3Y-29.49%
PM growth 5Y-1.78%
GM growth 3Y-14.76%
GM growth 5Y-2.25%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASIX is destroying value.
- ASIX has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for ASIX has been reduced compared to 5 years ago.
- The debt/assets ratio for ASIX is higher compared to a year ago.
2.2 Solvency
- ASIX has an Altman-Z score of 1.94. This is not the best score and indicates that ASIX is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 1.94, ASIX perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
- The Debt to FCF ratio of ASIX is 2314.81, which is on the high side as it means it would take ASIX, 2314.81 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 2314.81, ASIX perfoms like the industry average, outperforming 40.96% of the companies in the same industry.
- A Debt/Equity ratio of 0.31 indicates that ASIX is not too dependend on debt financing.
- ASIX has a better Debt to Equity ratio (0.31) than 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2314.81 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.26
WACC12.68%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that ASIX should not have too much problems paying its short term obligations.
- ASIX has a worse Current ratio (1.36) than 81.93% of its industry peers.
- A Quick Ratio of 0.74 indicates that ASIX may have some problems paying its short term obligations.
- The Quick ratio of ASIX (0.74) is worse than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 32.20% over the past year.
- ASIX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.81% yearly.
- ASIX shows a decrease in Revenue. In the last year, the revenue decreased by -5.05%.
- ASIX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.18% yearly.
EPS 1Y (TTM)32.2%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%-90.91%
Revenue 1Y (TTM)-5.05%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-5.96%
3.2 Future
- The Earnings Per Share is expected to grow by 15.65% on average over the next years. This is quite good.
- Based on estimates for the next years, ASIX will show a decrease in Revenue. The Revenue will decrease by -0.66% on average per year.
EPS Next Y34.53%
EPS Next 2Y15.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.01%
Revenue Next 2Y-0.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.06, the valuation of ASIX can be described as very cheap.
- Based on the Price/Earnings ratio, ASIX is valued cheaply inside the industry as 92.77% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ASIX to the average of the S&P500 Index (28.87), we can say ASIX is valued rather cheaply.
- ASIX is valuated cheaply with a Price/Forward Earnings ratio of 6.30.
- ASIX's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASIX is cheaper than 93.98% of the companies in the same industry.
- ASIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
- ASIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASIX is cheaper than 92.77% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASIX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4106.1 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
- ASIX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as ASIX's earnings are expected to grow with 15.65% in the coming years.
PEG (NY)0.2
PEG (5Y)1.04
EPS Next 2Y15.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.74%, ASIX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.23, ASIX pays a better dividend. On top of this ASIX pays more dividend than 85.54% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ASIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
- ASIX has been paying a dividend for over 5 years, so it has already some track record.
- ASIX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- ASIX pays out 32.72% of its income as dividend. This is a sustainable payout ratio.
DP32.72%
EPS Next 2Y15.65%
EPS Next 3YN/A
ADVANSIX INC / ASIX FAQ
Can you provide the ChartMill fundamental rating for ADVANSIX INC?
ChartMill assigns a fundamental rating of 5 / 10 to ASIX.
What is the valuation status for ASIX stock?
ChartMill assigns a valuation rating of 8 / 10 to ADVANSIX INC (ASIX). This can be considered as Undervalued.
Can you provide the profitability details for ADVANSIX INC?
ADVANSIX INC (ASIX) has a profitability rating of 5 / 10.
What is the valuation of ADVANSIX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADVANSIX INC (ASIX) is 7.06 and the Price/Book (PB) ratio is 0.54.
Can you provide the dividend sustainability for ASIX stock?
The dividend rating of ADVANSIX INC (ASIX) is 5 / 10 and the dividend payout ratio is 32.72%.