ADVANSIX INC (ASIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASIX - US00773T1016 - Common Stock
17.07 USD
-0.03 (-0.18%)
17.07 USD
0 (0%)
ASIX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. While ASIX is still in line with the averages on profitability rating, there are concerns on its financial health. ASIX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
- In the past 5 years ASIX always reported a positive cash flow from operatings.
1.2 Ratios
- ASIX has a Return On Assets of 3.11%. This is in the better half of the industry: ASIX outperforms 69.51% of its industry peers.
- ASIX has a better Return On Equity (6.41%) than 69.51% of its industry peers.
- ASIX has a Return On Invested Capital of 3.30%. This is comparable to the rest of the industry: ASIX outperforms 48.78% 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 6.11%.
- 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 better Profit Margin (3.52%) than 65.85% of its industry peers.
- ASIX's Profit Margin has declined in the last couple of years.
- ASIX has a Operating Margin of 3.41%. This is in the lower half of the industry: ASIX underperforms 65.85% of its industry peers.
- ASIX's Operating Margin has declined in the last couple of years.
- ASIX has a worse Gross Margin (9.98%) than 81.71% 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
- ASIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- 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.
- ASIX has a Altman-Z score (1.94) which is comparable to the rest of the industry.
- ASIX has a debt to FCF ratio of 2314.81. This is a negative value and a sign of low solvency as ASIX would need 2314.81 years to pay back of all of its debts.
- ASIX's Debt to FCF ratio of 2314.81 is in line compared to the rest of the industry. ASIX outperforms 41.46% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that ASIX is not too dependend on debt financing.
- ASIX has a Debt to Equity ratio of 0.31. This is in the better half of the industry: ASIX outperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2314.81 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.26
WACC12.78%
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 81.71% of its industry peers.
- ASIX has a Quick Ratio of 1.36. 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 has a Quick ratio of 0.74. This is amonst the worse of the industry: ASIX underperforms 84.15% 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%.
- The Revenue has been growing slightly by 3.18% on average over the past years.
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 41.55% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 2.01% on average over the next years.
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
- 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 7.29 indicates a rather cheap valuation of ASIX.
- 92.68% of the companies in the same industry are more expensive than ASIX, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ASIX to the average of the S&P500 Index (27.21), we can say ASIX is valued rather cheaply.
- The Price/Forward Earnings ratio is 4.35, which indicates a rather cheap valuation of ASIX.
- 98.78% of the companies in the same industry are more expensive than ASIX, based on the Price/Forward Earnings ratio.
- ASIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 4.35 |
4.2 Price Multiples
- ASIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASIX is cheaper than 93.90% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ASIX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4245.37 | ||
| 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.
- A more expensive valuation may be justified as ASIX's earnings are expected to grow with 41.55% in the coming years.
PEG (NY)0.13
PEG (5Y)1.07
EPS Next 2Y41.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ASIX has a Yearly Dividend Yield of 3.57%. Purely for dividend investing, there may be better candidates out there.
- ASIX's Dividend Yield is rather good when compared to the industry average which is at 2.28. ASIX pays more dividend than 84.15% of the companies 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 | 3.57% |
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 2Y41.55%
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 7.29 and the Price/Book (PB) ratio is 0.56.
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%.