ADVANSIX INC (ASIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASIX - US00773T1016 - Common Stock
17.11 USD
+0.3 (+1.78%)
17.13 USD
+0.02 (+0.12%)
ASIX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. ASIX has a medium profitability rating, but doesn't score so well on its financial health evaluation. ASIX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
ASIX had positive earnings in each of the past 5 years.
In the past 5 years ASIX always reported a positive cash flow from operatings.
1.2 Ratios
ASIX has a better Return On Assets (3.11%) than 70.24% of its industry peers.
The Return On Equity of ASIX (6.41%) is better than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.30%, ASIX is in line with its industry, outperforming 50.00% of the companies in the same industry.
ASIX had an Average Return On Invested Capital over the past 3 years of 9.21%. This is above the industry average of 6.09%.
The 3 year average ROIC (9.21%) for ASIX is well above the current ROIC(3.30%). The reason for the recent decline needs to be investigated.
| 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
ASIX has a Profit Margin of 3.52%. This is in the better half of the industry: ASIX outperforms 67.86% of its industry peers.
ASIX's Profit Margin has declined in the last couple of years.
ASIX has a worse Operating Margin (3.41%) than 64.29% 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 9.98%, ASIX is doing worse than 79.76% 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 | 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
ASIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ASIX has about the same amount of shares outstanding.
The number of shares outstanding for ASIX has been reduced compared to 5 years ago.
Compared to 1 year ago, ASIX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.94 indicates that ASIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.94, ASIX perfoms like the industry average, outperforming 57.14% 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.
Looking at the Debt to FCF ratio, with a value of 2314.81, ASIX is in line with its industry, outperforming 42.86% of the companies in the same industry.
ASIX has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
ASIX has a better Debt to Equity ratio (0.31) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2314.81 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.26
WACC12.71%
2.3 Liquidity
A Current Ratio of 1.36 indicates that ASIX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, ASIX is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that ASIX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, ASIX is doing worse than 83.33% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 6.81% on average over the past years.
The Revenue has decreased by -5.05% in the past year.
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
Based on estimates for the next years, ASIX will show a very strong growth in Earnings Per Share. The EPS will grow by 41.55% on average per year.
ASIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
EPS Next Y56.12%
EPS Next 2Y41.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.5%
Revenue Next 2Y2.01%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ASIX is valuated cheaply with a Price/Earnings ratio of 7.31.
Compared to the rest of the industry, the Price/Earnings ratio of ASIX indicates a rather cheap valuation: ASIX is cheaper than 92.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. ASIX is valued rather cheaply when compared to this.
ASIX is valuated cheaply with a Price/Forward Earnings ratio of 4.36.
98.81% of the companies in the same industry are more expensive than ASIX, based on the Price/Forward Earnings ratio.
ASIX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 4.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASIX is valued cheaper than 90.48% of the companies in the same industry.
ASIX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4255.32 | ||
| EV/EBITDA | 5.32 |
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.
ASIX's earnings are expected to grow with 41.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)1.07
EPS Next 2Y41.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, ASIX has a reasonable but not impressive dividend return.
ASIX's Dividend Yield is rather good when compared to the industry average which is at 2.46. ASIX pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ASIX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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
32.72% of the earnings are spent on dividend by ASIX. This is a low number and sustainable payout ratio.
DP32.72%
EPS Next 2Y41.55%
EPS Next 3YN/A
17.11
+0.3 (+1.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.75%
Inst Owner Change-0.48%
Ins Owners3.21%
Ins Owner Change0.25%
Market Cap459.57M
Revenue(TTM)1.49B
Net Income(TTM)52.43M
Analysts82.86
Price Target21.42 (25.19%)
Short Float %5.27%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP32.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.58%
Min EPS beat(2)-80.39%
Max EPS beat(2)-0.76%
EPS beat(4)2
Avg EPS beat(4)13.22%
Min EPS beat(4)-80.39%
Max EPS beat(4)123.53%
EPS beat(8)5
Avg EPS beat(8)17.71%
EPS beat(12)7
Avg EPS beat(12)-44.28%
EPS beat(16)9
Avg EPS beat(16)-31.2%
Revenue beat(2)1
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-7.25%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-3.44%
Min Revenue beat(4)-13.74%
Max Revenue beat(4)6.66%
Revenue beat(8)5
Avg Revenue beat(8)0.5%
Revenue beat(12)6
Avg Revenue beat(12)-2.55%
Revenue beat(16)9
Avg Revenue beat(16)-1.71%
PT rev (1m)-25%
PT rev (3m)-39.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 4.36 | ||
| P/S | 0.31 | ||
| P/FCF | 4255.32 | ||
| P/OCF | 3.73 | ||
| P/B | 0.56 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)2.34
EY13.68%
EPS(NY)3.93
Fwd EY22.95%
FCF(TTM)0
FCFY0.02%
OCF(TTM)4.59
OCFY26.83%
SpS55.52
BVpS30.46
TBVpS26.85
PEG (NY)0.13
PEG (5Y)1.07
Graham Number40.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 6.41% | ||
| ROCE | 3.76% | ||
| ROIC | 3.3% | ||
| ROICexc | 3.36% | ||
| ROICexgc | 3.63% | ||
| OM | 3.41% | ||
| PM (TTM) | 3.52% | ||
| GM | 9.98% | ||
| FCFM | 0.01% |
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%
ROICexgc growth 3Y-35.6%
ROICexgc 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-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2314.81 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 158.06% | ||
| Cap/Sales | 8.26% | ||
| Interest Coverage | 6.89 | ||
| Cash Conversion | 95.71% | ||
| Profit Quality | 0.21% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.94 |
F-Score6
WACC12.71%
ROIC/WACC0.26
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)32.2%
EPS 3Y-25.91%
EPS 5Y6.81%
EPS Q2Q%-90.91%
EPS Next Y56.12%
EPS Next 2Y41.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.05%
Revenue growth 3Y-3.42%
Revenue growth 5Y3.18%
Sales Q2Q%-5.96%
Revenue Next Year-0.5%
Revenue Next 2Y2.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.3%
EBIT growth 3Y-32.45%
EBIT growth 5Y-3.69%
EBIT Next Year199.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-99.64%
FCF growth 3Y-78.15%
FCF growth 5YN/A
OCF growth 1Y-2.91%
OCF growth 3Y-14.78%
OCF growth 5Y2.38%
ADVANSIX INC / ASIX FAQ
What is the fundamental rating for ASIX stock?
ChartMill assigns a fundamental rating of 5 / 10 to ASIX.
What is the valuation status of ADVANSIX INC (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 expected EPS growth for ADVANSIX INC (ASIX) stock?
The Earnings per Share (EPS) of ADVANSIX INC (ASIX) is expected to grow by 56.12% in the next year.
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%.