ADVANSIX INC (ASIX) Stock Fundamental Analysis
NYSE:ASIX - New York Stock Exchange, Inc. - US00773T1016 - Common Stock - Currency: USD
Overall ASIX gets a fundamental rating of 4 out of 10. We evaluated ASIX against 85 industry peers in the Chemicals industry. ASIX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
ASIX had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 2.77%, ASIX is doing good in the industry, outperforming 60.24% of the companies in the same industry.
ASIX's Return On Equity of 5.70% is in line compared to the rest of the industry. ASIX outperforms 56.63% of its industry peers.
ASIX's Return On Invested Capital of 4.18% is in line compared to the rest of the industry. ASIX outperforms 48.19% 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 6.82%.
The last Return On Invested Capital (4.18%) 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 | 2.77% | ||
| ROE | 5.7% | ||
| ROIC | 4.18% |
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 (2.91%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ASIX has declined.
Looking at the Operating Margin, with a value of 3.88%, ASIX is doing worse than 69.88% of the companies in the same industry.
ASIX's Operating Margin has declined in the last couple of years.
ASIX has a worse Gross Margin (10.08%) than 85.54% of its industry peers.
ASIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM (TTM) | 2.91% | ||
| GM | 10.08% |
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.
The number of shares outstanding for ASIX remains at a similar level compared to 1 year ago.
ASIX has less shares outstanding than it did 5 years ago.
ASIX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.17 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 2.17. This is in the better half of the industry: ASIX outperforms 61.45% of its industry peers.
The Debt to FCF ratio of ASIX is 116.76, which is on the high side as it means it would take ASIX, 116.76 years of fcf income to pay off all of its debts.
ASIX has a Debt to FCF ratio of 116.76. This is in the lower half of the industry: ASIX underperforms 65.06% of its industry peers.
ASIX has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ASIX's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. ASIX outperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 116.76 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.47
WACC8.91%
2.3 Liquidity
ASIX has a Current Ratio of 1.08. 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 1.08, ASIX is doing worse than 87.95% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that ASIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, ASIX is not doing good in the industry: 92.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
ASIX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.51%.
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 decrease in Revenue. The Revenue has decreased by -1.04% in the last year.
The Revenue has been growing slightly by 3.18% on average over the past years.
EPS 1Y (TTM)-1.51%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%190%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-13.9%
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 66.39% on average per year.
ASIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y118.83%
EPS Next 2Y66.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.02%
Revenue Next 2Y5.04%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.68 indicates a correct valuation of ASIX.
Compared to the rest of the industry, the Price/Earnings ratio of ASIX indicates a somewhat cheap valuation: ASIX is cheaper than 71.08% of the companies listed in the same industry.
ASIX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.75.
Based on the Price/Forward Earnings ratio of 6.25, the valuation of ASIX can be described as very cheap.
Based on the Price/Forward Earnings ratio, ASIX is valued cheaper than 92.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. ASIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
ASIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASIX is cheaper than 86.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASIX is valued a bit more expensive than the industry average as 65.06% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 423.95 | ||
| EV/EBITDA | 6.62 |
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 66.39% in the coming years.
PEG (NY)0.12
PEG (5Y)2.01
EPS Next 2Y66.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ASIX has a Yearly Dividend Yield of 2.31%.
Compared to an average industry Dividend Yield of 3.38, ASIX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, ASIX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 38.81% of its income as dividend. This is a sustainable payout ratio.
DP38.81%
EPS Next 2Y66.39%
EPS Next 3YN/A
26.82
-1.1 (-3.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.12%
Inst Owner Change2.58%
Ins Owners3.22%
Ins Owner Change0.32%
Market Cap716.90M
Analysts82.5
Price Target40.29 (50.22%)
Short Float %1.38%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP38.81%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)77.62%
Min EPS beat(2)31.72%
Max EPS beat(2)123.53%
EPS beat(4)3
Avg EPS beat(4)45.18%
Min EPS beat(4)-1.67%
Max EPS beat(4)123.53%
EPS beat(8)6
Avg EPS beat(8)-54.59%
EPS beat(12)8
Avg EPS beat(12)-35.45%
EPS beat(16)11
Avg EPS beat(16)-21.2%
Revenue beat(2)1
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-13.74%
Max Revenue beat(2)6.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-13.74%
Max Revenue beat(4)6.18%
Revenue beat(8)4
Avg Revenue beat(8)-1.81%
Revenue beat(12)6
Avg Revenue beat(12)-2.43%
Revenue beat(16)10
Avg Revenue beat(16)-0.8%
PT rev (1m)0%
PT rev (3m)5.33%
EPS NQ rev (1m)-2.81%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)-6.14%
Revenue NQ rev (3m)-6.14%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 6.25 | ||
| P/S | 0.47 | ||
| P/FCF | 423.95 | ||
| P/OCF | 5.29 | ||
| P/B | 0.93 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 6.62 |
EPS(TTM)1.96
EY7.31%
EPS(NY)4.29
Fwd EY15.99%
FCF(TTM)0.06
FCFY0.24%
OCF(TTM)5.07
OCFY18.89%
SpS56.77
BVpS28.98
TBVpS25.26
PEG (NY)0.12
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 5.7% | ||
| ROCE | 4.76% | ||
| ROIC | 4.18% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 4.63% | ||
| OM | 3.88% | ||
| PM (TTM) | 2.91% | ||
| GM | 10.08% | ||
| FCFM | 0.11% |
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-Score4
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 116.76 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 175.54% | ||
| Cap/Sales | 8.81% | ||
| Interest Coverage | 5.44 | ||
| Cash Conversion | 100.24% | ||
| Profit Quality | 3.83% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.17 |
F-Score4
WACC8.91%
ROIC/WACC0.47
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)-1.51%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%190%
EPS Next Y118.83%
EPS Next 2Y66.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-13.9%
Revenue Next Year8.02%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.25%
EBIT growth 3Y-32.45%
EBIT growth 5Y-3.69%
EBIT Next Year283.56%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.38%
FCF growth 3Y-78.15%
FCF growth 5YN/A
OCF growth 1Y15.2%
OCF growth 3Y-14.78%
OCF growth 5Y2.38%