ADVANSIX INC (ASIX) Stock Fundamental Analysis
NYSE:ASIX - New York Stock Exchange, Inc. - US00773T1016 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ASIX. ASIX was compared to 85 industry peers in the Chemicals industry. ASIX has an average financial health and profitability rating. ASIX may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ASIX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ASIX had positive earnings in the past year.
ASIX had a positive operating cash flow in the past year.
Each year in the past 5 years ASIX has been profitable.
In the past 5 years ASIX always reported a positive cash flow from operatings.
1.2 Ratios
ASIX has a Return On Assets of 5.22%. This is in the better half of the industry: ASIX outperforms 77.65% of its industry peers.
The Return On Equity of ASIX (10.69%) is better than 74.12% of its industry peers.
The Return On Invested Capital of ASIX (7.56%) is better than 70.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASIX is above the industry average of 6.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 10.69% | ||
| ROIC | 7.56% |
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
ASIX has a Profit Margin of 5.45%. This is in the better half of the industry: ASIX outperforms 68.24% of its industry peers.
In the last couple of years the Profit Margin of ASIX has declined.
The Operating Margin of ASIX (7.03%) is worse than 61.18% of its industry peers.
ASIX's Operating Margin has declined in the last couple of years.
ASIX has a worse Gross Margin (13.05%) than 77.65% of its industry peers.
ASIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | 5.45% | ||
| GM | 13.05% |
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
ASIX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ASIX has about the same amout of shares outstanding than it did 1 year ago.
ASIX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ASIX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.22 indicates that ASIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASIX has a Altman-Z score of 2.22. This is comparable to the rest of the industry: ASIX outperforms 56.47% of its industry peers.
ASIX has a debt to FCF ratio of 4.24. This is a neutral value as ASIX would need 4.24 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.24, ASIX belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that ASIX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, ASIX is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.84
WACC9.02%
2.3 Liquidity
ASIX has a Current Ratio of 1.19. This is a normal value and indicates that ASIX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ASIX (1.19) is worse than 81.18% of its industry peers.
A Quick Ratio of 0.56 indicates that ASIX may have some problems paying its short term obligations.
ASIX's Quick ratio of 0.56 is on the low side compared to the rest of the industry. ASIX is outperformed by 87.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1542.86% over the past year.
The Earnings Per Share has been growing slightly by 6.81% on average over the past years.
Looking at the last year, ASIX shows a small growth in Revenue. The Revenue has grown by 6.03% in the last year.
Measured over the past years, ASIX shows a small growth in Revenue. The Revenue has been growing by 3.18% on average per year.
EPS 1Y (TTM)1542.86%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%266.07%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%12.16%
3.2 Future
ASIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.65% yearly.
ASIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y84.22%
EPS Next 2Y43.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.07%
Revenue Next 2Y3.33%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.37, the valuation of ASIX can be described as very cheap.
96.47% of the companies in the same industry are more expensive than ASIX, based on the Price/Earnings ratio.
ASIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
With a Price/Forward Earnings ratio of 5.43, the valuation of ASIX can be described as very cheap.
Based on the Price/Forward Earnings ratio, ASIX is valued cheaply inside the industry as 97.65% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.44. ASIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 5.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASIX is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASIX indicates a rather cheap valuation: ASIX is cheaper than 87.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.63 | ||
| EV/EBITDA | 4.31 |
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 43.65% in the coming years.
PEG (NY)0.08
PEG (5Y)0.94
EPS Next 2Y43.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, ASIX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.53, ASIX pays a bit more dividend than its industry peers.
ASIX's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
20.19% of the earnings are spent on dividend by ASIX. This is a low number and sustainable payout ratio.
DP20.19%
EPS Next 2Y43.65%
EPS Next 3YN/A
21.98
-0.21 (-0.95%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.72%
Inst Owner Change0%
Ins Owners3.25%
Ins Owner Change7.65%
Market Cap589.28M
Analysts82.86
Price Target35.19 (60.1%)
Short Float %2.2%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP20.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)67.02%
Min EPS beat(2)10.52%
Max EPS beat(2)123.53%
EPS beat(4)4
Avg EPS beat(4)48.23%
Min EPS beat(4)10.52%
Max EPS beat(4)123.53%
EPS beat(8)6
Avg EPS beat(8)-55.77%
EPS beat(12)8
Avg EPS beat(12)-36.51%
EPS beat(16)11
Avg EPS beat(16)-22.69%
Revenue beat(2)1
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-13.74%
Max Revenue beat(2)6.66%
Revenue beat(4)3
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-13.74%
Max Revenue beat(4)6.66%
Revenue beat(8)5
Avg Revenue beat(8)-0.41%
Revenue beat(12)7
Avg Revenue beat(12)-1.67%
Revenue beat(16)10
Avg Revenue beat(16)-0.67%
PT rev (1m)0%
PT rev (3m)-8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 5.43 | ||
| P/S | 0.38 | ||
| P/FCF | 11.63 | ||
| P/OCF | 3.22 | ||
| P/B | 0.74 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)3.45
EY15.7%
EPS(NY)4.04
Fwd EY18.4%
FCF(TTM)1.89
FCFY8.6%
OCF(TTM)6.83
OCFY31.06%
SpS58.13
BVpS29.63
TBVpS25.95
PEG (NY)0.08
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 10.69% | ||
| ROCE | 8.6% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 8.25% | ||
| OM | 7.03% | ||
| PM (TTM) | 5.45% | ||
| GM | 13.05% | ||
| FCFM | 3.25% |
ROA(3y)5.97%
ROA(5y)6.44%
ROE(3y)12.12%
ROE(5y)14%
ROIC(3y)9.21%
ROIC(5y)10.01%
ROICexc(3y)9.46%
ROICexc(5y)10.22%
ROICexgc(3y)10.45%
ROICexgc(5y)10.9%
ROCE(3y)10.48%
ROCE(5y)11.39%
ROICexcg growth 3Y-35.6%
ROICexcg growth 5Y-7.34%
ROICexc growth 3Y-37.02%
ROICexc growth 5Y-8.61%
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%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.24 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 173.63% | ||
| Cap/Sales | 8.49% | ||
| Interest Coverage | 12.43 | ||
| Cash Conversion | 98.49% | ||
| Profit Quality | 59.68% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.22 |
F-Score7
WACC9.02%
ROIC/WACC0.84
Cap/Depr(3y)150.48%
Cap/Depr(5y)134.95%
Cap/Sales(3y)6.8%
Cap/Sales(5y)6.19%
Profit Quality(3y)43.2%
Profit Quality(5y)61.64%
High Growth Momentum
Growth
EPS 1Y (TTM)1542.86%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%266.07%
EPS Next Y84.22%
EPS Next 2Y43.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%12.16%
Revenue Next Year2.07%
Revenue Next 2Y3.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3044.12%
EBIT growth 3Y-32.45%
EBIT growth 5Y-3.69%
EBIT Next Year232.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.91%
FCF growth 3Y-78.15%
FCF growth 5YN/A
OCF growth 1Y-19%
OCF growth 3Y-14.78%
OCF growth 5Y2.38%