AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - NYSE:AVNT - US05368V1061 - Common Stock
29.29 USD
-0.86 (-2.85%)
29.29 USD
0 (0%)
AVNT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. While AVNT is still in line with the averages on profitability rating, there are concerns on its financial health. AVNT is not valued too expensively and it also shows a decent growth rate. Finally AVNT also has an excellent dividend rating.
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 (1.94%) is comparable to the rest of the industry.
With a decent Return On Equity value of 5.04%, AVNT is doing good in the industry, outperforming 62.20% of the companies in the same industry.
AVNT has a Return On Invested Capital of 4.10%. This is comparable to the rest of the industry: AVNT outperforms 51.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVNT is in line with the industry average of 6.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 5.04% | ||
| ROIC | 4.1% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)4.38%
ROIC(5y)4.85%
1.3 Margins
AVNT has a Profit Margin of 3.65%. This is in the better half of the industry: AVNT outperforms 64.63% of its industry peers.
In the last couple of years the Profit Margin of AVNT has declined.
AVNT has a Operating Margin (8.31%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AVNT has grown nicely.
AVNT has a Gross Margin of 32.70%. This is in the better half of the industry: AVNT outperforms 64.63% of its industry peers.
In the last couple of years the Gross Margin of AVNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.31% | ||
| PM (TTM) | 3.65% | ||
| GM | 32.7% |
OM growth 3Y2.89%
OM growth 5Y12%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y3.39%
GM growth 5Y6.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNT is destroying value.
The number of shares outstanding for AVNT has been increased compared to 1 year ago.
Compared to 5 years ago, AVNT has more shares outstanding
AVNT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that AVNT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.69, AVNT perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
The Debt to FCF ratio of AVNT is 13.49, which is on the high side as it means it would take AVNT, 13.49 years of fcf income to pay off all of its debts.
AVNT has a Debt to FCF ratio (13.49) which is comparable to the rest of the industry.
AVNT has a Debt/Equity ratio of 0.86. This is a neutral value indicating AVNT is somewhat dependend on debt financing.
The Debt to Equity ratio of AVNT (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.5
WACC8.11%
2.3 Liquidity
AVNT has a Current Ratio of 2.03. This indicates that AVNT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.03, AVNT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that AVNT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.50, AVNT is doing good in the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
AVNT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.23%.
AVNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.25% yearly.
The Revenue has been growing slightly by 3.11% in the past year.
AVNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.51% yearly.
EPS 1Y (TTM)2.23%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%7.69%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-1.07%
3.2 Future
The Earnings Per Share is expected to grow by 9.35% on average over the next years. This is quite good.
AVNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.49% yearly.
EPS Next Y7.28%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
EPS Next 5YN/A
Revenue Next Year1.15%
Revenue Next 2Y2.17%
Revenue Next 3Y2.49%
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
Based on the Price/Earnings ratio of 10.65, the valuation of AVNT can be described as reasonable.
79.27% of the companies in the same industry are more expensive than AVNT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. AVNT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.30, the valuation of AVNT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVNT indicates a rather cheap valuation: AVNT is cheaper than 81.71% of the companies listed in the same industry.
AVNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNT indicates a somewhat cheap valuation: AVNT is cheaper than 60.98% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AVNT is valued a bit cheaper than 69.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.9 | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
AVNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AVNT may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)2.5
EPS Next 2Y8.83%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 3.65%.
Compared to an average industry Dividend Yield of 3.96, AVNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AVNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
The dividend of AVNT has a limited annual growth rate of 5.71%.
AVNT has been paying a dividend for at least 10 years, so it has a reliable track record.
AVNT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.71%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
AVNT pays out 81.08% of its income as dividend. This is not a sustainable payout ratio.
AVNT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.08%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
29.29
-0.86 (-2.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-0.97%
Ins Owners0.52%
Ins Owner Change1.31%
Market Cap2.68B
Revenue(TTM)3.24B
Net Income(TTM)118.90M
Analysts81.33
Price Target43.75 (49.37%)
Short Float %1.63%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend1.03
Dividend Growth(5Y)5.71%
DP81.08%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.78%
Min EPS beat(2)-1.47%
Max EPS beat(2)-0.09%
EPS beat(4)1
Avg EPS beat(4)0.02%
Min EPS beat(4)-1.47%
Max EPS beat(4)1.85%
EPS beat(8)4
Avg EPS beat(8)2.25%
EPS beat(12)7
Avg EPS beat(12)6.9%
EPS beat(16)11
Avg EPS beat(16)5.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.22%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.8%
Revenue beat(16)4
Avg Revenue beat(16)-3.08%
PT rev (1m)-1.28%
PT rev (3m)1.81%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 9.3 | ||
| P/S | 0.82 | ||
| P/FCF | 17.9 | ||
| P/OCF | 10.5 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.49 |
EPS(TTM)2.75
EY9.39%
EPS(NY)3.15
Fwd EY10.76%
FCF(TTM)1.64
FCFY5.59%
OCF(TTM)2.79
OCFY9.53%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.46
PEG (5Y)2.5
Graham Number39.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 5.04% | ||
| ROCE | 5.01% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.49% | ||
| ROICexgc | 13.49% | ||
| OM | 8.31% | ||
| PM (TTM) | 3.65% | ||
| GM | 32.7% | ||
| FCFM | 4.6% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)4.38%
ROIC(5y)4.85%
ROICexc(3y)4.93%
ROICexc(5y)5.59%
ROICexgc(3y)16.68%
ROICexgc(5y)17.68%
ROCE(3y)5.36%
ROCE(5y)5.94%
ROICexgc growth 3Y-1.85%
ROICexgc growth 5Y-4.73%
ROICexc growth 3Y-6.57%
ROICexc growth 5Y-5.48%
OM growth 3Y2.89%
OM growth 5Y12%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y3.39%
GM growth 5Y6.91%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 57.64% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.28% | ||
| Profit Quality | 125.99% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.69 |
F-Score5
WACC8.11%
ROIC/WACC0.5
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)2.23%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%7.69%
EPS Next Y7.28%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
EPS Next 5YN/A
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-1.07%
Revenue Next Year1.15%
Revenue Next 2Y2.17%
Revenue Next 3Y2.49%
Revenue Next 5YN/A
EBIT growth 1Y-16.27%
EBIT growth 3Y2.11%
EBIT growth 5Y14.81%
EBIT Next Year60.91%
EBIT Next 3Y22.93%
EBIT Next 5YN/A
FCF growth 1Y0.13%
FCF growth 3Y0.93%
FCF growth 5Y-9.24%
OCF growth 1Y-4.34%
OCF growth 3Y3.18%
OCF growth 5Y-3.11%
AVIENT CORP / AVNT FAQ
What is the fundamental rating for AVNT stock?
ChartMill assigns a fundamental rating of 5 / 10 to AVNT.
What is the valuation status of AVIENT CORP (AVNT) stock?
ChartMill assigns a valuation rating of 6 / 10 to AVIENT CORP (AVNT). This can be considered as Fairly Valued.
How profitable is AVIENT CORP (AVNT) stock?
AVIENT CORP (AVNT) has a profitability rating of 6 / 10.
What is the valuation of AVIENT CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AVIENT CORP (AVNT) is 10.65 and the Price/Book (PB) ratio is 1.14.
What is the earnings growth outlook for AVIENT CORP?
The Earnings per Share (EPS) of AVIENT CORP (AVNT) is expected to grow by 7.28% in the next year.