ADVANSIX INC (ASIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASIX - US00773T1016 - Common Stock
17.1 USD
+0.08 (+0.47%)
17.1 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ASIX. ASIX was compared to 82 industry peers in the Chemicals industry. There are concerns on the financial health of ASIX while its profitability can be described as average. ASIX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- ASIX had positive earnings in the past year.
- In the past year ASIX had a positive cash flow from operations.
- ASIX had positive earnings in each of the past 5 years.
- Each year in the past 5 years ASIX had a positive operating cash flow.
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.
- The Return On Equity of ASIX (6.41%) is better 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ASIX is above the industry average of 6.11%.
- The last Return On Invested Capital (3.30%) 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 | 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
- The Profit Margin of ASIX (3.52%) is better than 65.85% of its industry peers.
- In the last couple of years the Profit Margin of ASIX has declined.
- Looking at the Operating Margin, with a value of 3.41%, ASIX is doing worse than 65.85% of the companies in the same industry.
- In the last couple of years the Operating Margin of ASIX has declined.
- With a Gross Margin value of 9.98%, ASIX is not doing good in the industry: 81.71% of the companies in the same industry are doing better.
- ASIX's Gross Margin has declined in the last couple of years.
| 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's Altman-Z score of 1.94 is in line compared to the rest of the industry. ASIX outperforms 53.66% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 2314.81, ASIX perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
- A Debt/Equity ratio of 0.31 indicates that ASIX is not too dependend on debt financing.
- ASIX has a better Debt to Equity ratio (0.31) than 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
WACC12.79%
2.3 Liquidity
- ASIX has a Current Ratio of 1.36. This is a normal value and indicates that ASIX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.36, ASIX is not doing good in the industry: 81.71% of the companies in the same industry are doing better.
- 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's Quick ratio of 0.74 is on the low side compared to the rest of the industry. ASIX is outperformed by 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.
- 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.
- The Revenue has decreased by -5.05% in the past 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)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
- Based on estimates for the next years, ASIX will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
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
- Based on the Price/Earnings ratio of 7.31, the valuation of ASIX can be described as very cheap.
- Based on the Price/Earnings ratio, ASIX is valued cheaper than 92.68% of the companies in the same industry.
- ASIX is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 4.35, the valuation of ASIX can be described as very cheap.
- Based on the Price/Forward Earnings ratio, ASIX is valued cheaper than 98.78% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. ASIX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 4.35 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASIX indicates a rather cheap valuation: ASIX is cheaper than 93.90% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASIX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4252.83 | ||
| EV/EBITDA | 5.32 |
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 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
- ASIX has a Yearly Dividend Yield of 3.57%.
- Compared to an average industry Dividend Yield of 2.28, ASIX pays a better dividend. On top of this ASIX pays more dividend than 84.15% of the companies listed in the same industry.
- ASIX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 7.31 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%.