ADVANSIX INC (ASIX) Stock Fundamental Analysis
USA - NYSE:ASIX - US00773T1016 - Common Stock
19.63 USD
+0.15 (+0.77%)
19.99 USD
+0.36 (+1.83%)
ASIX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. Both the profitability and the financial health of ASIX get a neutral evaluation. Nothing too spectacular is happening here. ASIX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ASIX was profitable.
In the past year ASIX had a positive cash flow from operations.
In the past 5 years ASIX has always been profitable.
ASIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ASIX has a better Return On Assets (4.70%) than 79.52% of its industry peers.
ASIX has a Return On Equity of 9.39%. This is in the better half of the industry: ASIX outperforms 77.11% of its industry peers.
ASIX's Return On Invested Capital of 5.70% is fine compared to the rest of the industry. ASIX outperforms 63.86% of its industry peers.
ASIX had an Average Return On Invested Capital over the past 3 years of 9.21%. This is above the industry average of 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.7% | ||
| ROE | 9.39% | ||
| ROIC | 5.7% |
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
With a decent Profit Margin value of 5.10%, ASIX is doing good in the industry, outperforming 68.67% of the companies in the same industry.
ASIX's Profit Margin has declined in the last couple of years.
ASIX has a worse Operating Margin (5.67%) than 62.65% of its industry peers.
ASIX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 11.93%, ASIX is doing worse than 78.31% of the companies in the same industry.
In the last couple of years the Gross Margin of ASIX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 5.1% | ||
| GM | 11.93% |
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 just above the Cost of Capital (WACC), so ASIX is still creating some value.
The number of shares outstanding for ASIX remains at a similar level compared to 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 2.13. 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.
Looking at the Altman-Z score, with a value of 2.13, ASIX is in line with its industry, outperforming 57.83% of the companies in the same industry.
The Debt to FCF ratio of ASIX is 8.95, which is on the high side as it means it would take ASIX, 8.95 years of fcf income to pay off all of its debts.
ASIX's Debt to FCF ratio of 8.95 is fine compared to the rest of the industry. ASIX outperforms 68.67% of its industry peers.
ASIX has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.29, ASIX is doing good in the industry, outperforming 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.66
WACC8.7%
2.3 Liquidity
ASIX has a Current Ratio of 1.35. This is a normal value and indicates that ASIX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.35, ASIX is doing worse than 81.93% of the companies in the same industry.
ASIX has a Quick Ratio of 1.35. This is a bad value and indicates that ASIX is not financially healthy enough and could expect problems in meeting its short term obligations.
ASIX's Quick ratio of 0.66 is on the low side compared to the rest of the industry. ASIX is outperformed by 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ASIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 423.33%, which is quite impressive.
Measured over the past 5 years, ASIX shows a small growth in Earnings Per Share. The EPS has been growing by 6.81% on average per year.
The Revenue has been growing slightly by 1.31% in the past year.
The Revenue has been growing slightly by 3.18% on average over the past years.
EPS 1Y (TTM)423.33%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%-20%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-9.58%
3.2 Future
Based on estimates for the next years, ASIX will show a very strong growth in Earnings Per Share. The EPS will grow by 43.65% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 6.25, which indicates a rather cheap valuation of ASIX.
ASIX's Price/Earnings ratio is rather cheap when compared to the industry. ASIX is cheaper than 92.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. ASIX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.85, which indicates a rather cheap valuation of ASIX.
Based on the Price/Forward Earnings ratio, ASIX is valued cheaper than 96.39% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ASIX to the average of the S&P500 Index (22.94), we can say ASIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.25 | ||
| Fwd PE | 4.85 |
4.2 Price Multiples
93.98% of the companies in the same industry are more expensive than ASIX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ASIX is valued a bit cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.66 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
The 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)0.07
PEG (5Y)0.92
EPS Next 2Y43.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ASIX has a Yearly Dividend Yield of 3.10%.
ASIX's Dividend Yield is a higher than the industry average which is at 3.69.
Compared to an average S&P500 Dividend Yield of 2.38, ASIX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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 22.15% of its income as dividend. This is a sustainable payout ratio.
DP22.15%
EPS Next 2Y43.65%
EPS Next 3YN/A
19.63
+0.15 (+0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.86%
Inst Owner Change0.17%
Ins Owners3.21%
Ins Owner Change1.81%
Market Cap526.87M
Analysts82.86
Price Target35.19 (79.27%)
Short Float %1.89%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP22.15%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.88%
Min EPS beat(2)-0.76%
Max EPS beat(2)10.52%
EPS beat(4)3
Avg EPS beat(4)41.25%
Min EPS beat(4)-0.76%
Max EPS beat(4)123.53%
EPS beat(8)5
Avg EPS beat(8)-56.65%
EPS beat(12)8
Avg EPS beat(12)-35.94%
EPS beat(16)10
Avg EPS beat(16)-25.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-7.25%
Max Revenue beat(2)6.66%
Revenue beat(4)2
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-13.74%
Max Revenue beat(4)6.66%
Revenue beat(8)4
Avg Revenue beat(8)-1.32%
Revenue beat(12)6
Avg Revenue beat(12)-2.49%
Revenue beat(16)9
Avg Revenue beat(16)-1.29%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.25 | ||
| Fwd PE | 4.85 | ||
| P/S | 0.35 | ||
| P/FCF | 19.66 | ||
| P/OCF | 3.42 | ||
| P/B | 0.64 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 4.58 |
EPS(TTM)3.14
EY16%
EPS(NY)4.04
Fwd EY20.6%
FCF(TTM)1
FCFY5.09%
OCF(TTM)5.74
OCFY29.22%
SpS56.45
BVpS30.69
TBVpS27.05
PEG (NY)0.07
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.7% | ||
| ROE | 9.39% | ||
| ROCE | 6.49% | ||
| ROIC | 5.7% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 6.25% | ||
| OM | 5.67% | ||
| PM (TTM) | 5.1% | ||
| GM | 11.93% | ||
| FCFM | 1.77% |
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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 8.95 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 166.12% | ||
| Cap/Sales | 8.39% | ||
| Interest Coverage | 12.09 | ||
| Cash Conversion | 94.74% | ||
| Profit Quality | 34.66% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.13 |
F-Score7
WACC8.7%
ROIC/WACC0.66
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)423.33%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%-20%
EPS Next Y84.22%
EPS Next 2Y43.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.31%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-9.58%
Revenue Next Year2.07%
Revenue Next 2Y3.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y420.28%
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-62.04%
FCF growth 3Y-78.15%
FCF growth 5YN/A
OCF growth 1Y-6.74%
OCF growth 3Y-14.78%
OCF growth 5Y2.38%