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. Both the profitability and the financial health of ASIX get a neutral evaluation. Nothing too spectacular is happening here. ASIX is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make ASIX suitable for value investing!
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.
In the past 5 years ASIX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.22%, ASIX is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
ASIX has a Return On Equity of 10.69%. This is in the better half of the industry: ASIX outperforms 74.12% of its industry peers.
ASIX has a better Return On Invested Capital (7.56%) than 70.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASIX is above the industry average of 6.84%.
| 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 better Profit Margin (5.45%) than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ASIX is still creating some value.
ASIX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ASIX has less shares outstanding
ASIX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.28 indicates that ASIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASIX's Altman-Z score of 2.28 is fine compared to the rest of the industry. ASIX outperforms 61.18% 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.
The Debt to FCF ratio of ASIX (4.24) is better than 81.18% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that ASIX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, ASIX is doing good in 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 | 2.28 |
ROIC/WACC0.85
WACC8.94%
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.
ASIX's Current ratio of 1.19 is on the low side compared to the rest of the industry. ASIX is outperformed by 81.18% of its industry peers.
A Quick Ratio of 0.56 indicates that ASIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, ASIX is not doing good in the industry: 87.06% of the companies in the same industry are doing better.
| 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.
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.
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
The Earnings Per Share is expected to grow by 43.65% on average over the next years. This is a very strong growth
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.33, the valuation of ASIX can be described as very cheap.
Based on the Price/Earnings ratio, ASIX is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. ASIX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.25, the valuation of ASIX can be described as very cheap.
94.12% 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 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASIX is valued cheaper than 94.12% of the companies in the same industry.
ASIX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ASIX is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.38 | ||
| EV/EBITDA | 4.76 |
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.
ASIX's earnings are expected to grow with 43.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)1.08
EPS Next 2Y43.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, ASIX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.57, ASIX pays a bit more dividend than its industry peers.
ASIX's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
25.29
+0.19 (+0.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.72%
Inst Owner Change-56.18%
Ins Owners3.25%
Ins Owner Change7.65%
Market Cap678.02M
Analysts82.86
Price Target35.19 (39.15%)
Short Float %2.14%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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)9.52%
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 | 7.33 | ||
| Fwd PE | 6.25 | ||
| P/S | 0.44 | ||
| P/FCF | 13.38 | ||
| P/OCF | 3.7 | ||
| P/B | 0.85 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)3.45
EY13.64%
EPS(NY)4.04
Fwd EY15.99%
FCF(TTM)1.89
FCFY7.47%
OCF(TTM)6.83
OCFY27%
SpS58.13
BVpS29.63
TBVpS25.95
PEG (NY)0.09
PEG (5Y)1.08
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 | 2.28 |
F-Score7
WACC8.94%
ROIC/WACC0.85
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%