ADVANSIX INC (ASIX) Stock Fundamental Analysis
NYSE:ASIX - New York Stock Exchange, Inc. - US00773T1016 - Common Stock - Currency: USD
ASIX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. ASIX has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on ASIX. With these ratings, ASIX could be worth investigating further for value investing!.
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
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's Return On Equity of 10.69% is fine compared to the rest of the industry. ASIX outperforms 74.12% of its industry peers.
ASIX has a Return On Invested Capital of 7.56%. This is in the better half of the industry: ASIX outperforms 70.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
With a decent Profit Margin value of 5.45%, ASIX is doing good in the industry, outperforming 68.24% of the companies in the same industry.
In the last couple of years the Profit Margin of ASIX has declined.
With a Operating Margin value of 7.03%, ASIX is not doing good in the industry: 61.18% of the companies in the same industry are doing better.
ASIX's Operating Margin has declined in the last couple of years.
ASIX has a Gross Margin of 13.05%. This is in the lower half of the industry: ASIX underperforms 77.65% of its industry peers.
In the last couple of years the Gross Margin of ASIX has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ASIX is creating some value.
Compared to 1 year ago, ASIX has about the same amount of shares outstanding.
ASIX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ASIX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.26 indicates that ASIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASIX has a Altman-Z score (2.26) which is comparable to the rest of the industry.
The Debt to FCF ratio of ASIX is 4.24, which is a neutral value as it means it would take ASIX, 4.24 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.24, ASIX belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
ASIX has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, ASIX is in the better half of 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 | 2.26 |
ROIC/WACC0.84
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.19 indicates that ASIX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, ASIX is doing worse than 81.18% of the companies in the same industry.
ASIX has a Quick Ratio of 1.19. 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 0.56 is on the low side compared to the rest of the industry. ASIX is outperformed by 87.06% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 6.81% on average over the past years.
ASIX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.03%.
The Revenue has been growing slightly by 3.18% on average over the past years.
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.
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
With a Price/Earnings ratio of 7.08, the valuation of ASIX can be described as very cheap.
96.47% 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 (27.29), we can say ASIX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.04, the valuation of ASIX can be described as very cheap.
Based on the Price/Forward Earnings ratio, ASIX is valued cheaper than 94.12% of the companies in the same industry.
ASIX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.04 |
4.2 Price Multiples
ASIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASIX is cheaper than 95.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASIX is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 4.64 |
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)0.08
PEG (5Y)1.04
EPS Next 2Y43.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ASIX has a Yearly Dividend Yield of 2.53%.
ASIX's Dividend Yield is a higher than the industry average which is at 3.57.
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
24.44
-0.85 (-3.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.72%
Inst Owner Change0%
Ins Owners3.25%
Ins Owner Change7.65%
Market Cap655.24M
Analysts82.86
Price Target35.19 (43.99%)
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 | 7.08 | ||
| Fwd PE | 6.04 | ||
| P/S | 0.42 | ||
| P/FCF | 12.93 | ||
| P/OCF | 3.58 | ||
| P/B | 0.82 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 4.64 |
EPS(TTM)3.45
EY14.12%
EPS(NY)4.04
Fwd EY16.55%
FCF(TTM)1.89
FCFY7.73%
OCF(TTM)6.83
OCFY27.94%
SpS58.13
BVpS29.63
TBVpS25.95
PEG (NY)0.08
PEG (5Y)1.04
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 | 2.26 |
F-Score7
WACC8.98%
ROIC/WACC0.84
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%