AVIENT CORP (AVNT) Stock Fundamental Analysis
NYSE:AVNT - New York Stock Exchange, Inc. - US05368V1061 - Common Stock - Currency: USD
Overall AVNT gets a fundamental rating of 5 out of 10. We evaluated AVNT against 85 industry peers in the Chemicals industry. AVNT has an excellent profitability rating, but there are concerns on its financial health. AVNT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVNT was profitable.
AVNT had a positive operating cash flow in the past year.
Each year in the past 5 years AVNT has been profitable.
Each year in the past 5 years AVNT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AVNT (2.92%) is better than 67.06% of its industry peers.
AVNT's Return On Equity of 7.33% is fine compared to the rest of the industry. AVNT outperforms 64.71% of its industry peers.
The Return On Invested Capital of AVNT (5.89%) is better than 63.53% of its industry peers.
AVNT had an Average Return On Invested Capital over the past 3 years of 5.06%. This is in line with the industry average of 6.81%.
The last Return On Invested Capital (5.89%) for AVNT is above the 3 year average (5.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.33% | ||
| ROIC | 5.89% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)5.06%
ROIC(5y)5.26%
1.3 Margins
With a decent Profit Margin value of 5.23%, AVNT is doing good in the industry, outperforming 68.24% of the companies in the same industry.
AVNT's Profit Margin has declined in the last couple of years.
The Operating Margin of AVNT (11.24%) is better than 63.53% of its industry peers.
AVNT's Operating Margin has improved in the last couple of years.
The Gross Margin of AVNT (33.69%) is better than 65.88% of its industry peers.
In the last couple of years the Gross Margin of AVNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.24% | ||
| PM (TTM) | 5.23% | ||
| GM | 33.69% |
OM growth 3Y6.37%
OM growth 5Y14.26%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y4.52%
GM growth 5Y7.61%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNT is destroying value.
The number of shares outstanding for AVNT has been increased compared to 1 year ago.
AVNT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AVNT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.01 indicates that AVNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AVNT (2.01) is comparable to the rest of the industry.
AVNT has a debt to FCF ratio of 15.32. This is a negative value and a sign of low solvency as AVNT would need 15.32 years to pay back of all of its debts.
The Debt to FCF ratio of AVNT (15.32) is comparable to the rest of the industry.
AVNT has a Debt/Equity ratio of 0.89. This is a neutral value indicating AVNT is somewhat dependend on debt financing.
AVNT has a worse Debt to Equity ratio (0.89) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.7
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.88 indicates that AVNT should not have too much problems paying its short term obligations.
The Current ratio of AVNT (1.88) is comparable to the rest of the industry.
AVNT has a Quick Ratio of 1.42. This is a normal value and indicates that AVNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.42, AVNT is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.19% over the past year.
The Earnings Per Share has been growing slightly by 4.25% on average over the past years.
Looking at the last year, AVNT shows a small growth in Revenue. The Revenue has grown by 3.11% in the last year.
The Revenue has been growing slightly by 2.51% on average over the past years.
EPS 1Y (TTM)13.19%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%-5.77%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%3.82%
3.2 Future
AVNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.60% yearly.
AVNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y8.79%
EPS Next 2Y11.51%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue Next Year1.69%
Revenue Next 2Y3.08%
Revenue Next 3Y3.95%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.71 indicates a correct valuation of AVNT.
Compared to the rest of the industry, the Price/Earnings ratio of AVNT indicates a somewhat cheap valuation: AVNT is cheaper than 63.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, AVNT is valued a bit cheaper.
AVNT is valuated correctly with a Price/Forward Earnings ratio of 14.44.
Based on the Price/Forward Earnings ratio, AVNT is valued a bit cheaper than the industry average as 61.18% of the companies are valued more expensively.
AVNT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVNT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.33 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AVNT has a very decent profitability rating, which may justify a higher PE ratio.
AVNT's earnings are expected to grow with 13.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)3.7
EPS Next 2Y11.51%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
AVNT's Dividend Yield is a higher than the industry average which is at 3.34.
AVNT's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of AVNT has a limited annual growth rate of 5.71%.
AVNT has paid a dividend for at least 10 years, which is a reliable track record.
AVNT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.71%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
55.46% of the earnings are spent on dividend by AVNT. This is a bit on the high side, but may be sustainable.
AVNT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.46%
EPS Next 2Y11.51%
EPS Next 3Y13.6%
41.8
-0.8 (-1.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.08%
Inst Owner Change1.5%
Ins Owners0.5%
Ins Owner Change1.68%
Market Cap3.82B
Analysts83.08
Price Target56.83 (35.96%)
Short Float %1.56%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend1.03
Dividend Growth(5Y)5.71%
DP55.46%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-0.22%
Max EPS beat(2)1.85%
EPS beat(4)3
Avg EPS beat(4)3.32%
Min EPS beat(4)-0.22%
Max EPS beat(4)8.18%
EPS beat(8)6
Avg EPS beat(8)4.24%
EPS beat(12)9
Avg EPS beat(12)7.49%
EPS beat(16)13
Avg EPS beat(16)7.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)0.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.22%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)4
Avg Revenue beat(12)1.25%
Revenue beat(16)6
Avg Revenue beat(16)-2.11%
PT rev (1m)0%
PT rev (3m)-0.26%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-1.54%
EPS NY rev (3m)-3.78%
Revenue NQ rev (1m)-2.17%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)-1.81%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 14.44 | ||
| P/S | 1.18 | ||
| P/FCF | 28.33 | ||
| P/OCF | 14.88 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.82 |
EPS(TTM)2.66
EY6.36%
EPS(NY)2.89
Fwd EY6.92%
FCF(TTM)1.48
FCFY3.53%
OCF(TTM)2.81
OCFY6.72%
SpS35.44
BVpS25.3
TBVpS-8.71
PEG (NY)1.79
PEG (5Y)3.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.33% | ||
| ROCE | 7.21% | ||
| ROIC | 5.89% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 21.24% | ||
| OM | 11.24% | ||
| PM (TTM) | 5.23% | ||
| GM | 33.69% | ||
| FCFM | 4.16% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)5.06%
ROIC(5y)5.26%
ROICexc(3y)5.69%
ROICexc(5y)6.05%
ROICexgc(3y)19.27%
ROICexgc(5y)19.24%
ROCE(3y)6.19%
ROCE(5y)6.44%
ROICexcg growth 3Y1.47%
ROICexcg growth 5Y-2.8%
ROICexc growth 3Y-3.41%
ROICexc growth 5Y-3.57%
OM growth 3Y6.37%
OM growth 5Y14.26%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y4.52%
GM growth 5Y7.61%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.32 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 67.84% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.21% | ||
| Profit Quality | 79.59% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.01 |
F-Score7
WACC8.4%
ROIC/WACC0.7
Cap/Depr(3y)66.22%
Cap/Depr(5y)65.36%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.15%
Profit Quality(3y)76.61%
Profit Quality(5y)81.33%
High Growth Momentum
Growth
EPS 1Y (TTM)13.19%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%-5.77%
EPS Next Y8.79%
EPS Next 2Y11.51%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%3.82%
Revenue Next Year1.69%
Revenue Next 2Y3.08%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y45.55%
EBIT growth 3Y5.57%
EBIT growth 5Y17.13%
EBIT Next Year64.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y64.11%
FCF growth 3Y0.93%
FCF growth 5Y-9.24%
OCF growth 1Y27.38%
OCF growth 3Y3.18%
OCF growth 5Y-3.11%