AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNT - US05368V1061 - Common Stock
31.77 USD
+0.41 (+1.31%)
31.65 USD
-0.12 (-0.38%)
Overall AVNT gets a fundamental rating of 5 out of 10. We evaluated AVNT against 84 industry peers in the Chemicals industry. AVNT has a medium profitability rating, but doesn't score so well on its financial health evaluation. AVNT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AVNT was profitable.
AVNT had a positive operating cash flow in the past year.
AVNT had positive earnings in each of the past 5 years.
In the past 5 years AVNT always reported a positive cash flow from operatings.
1.2 Ratios
AVNT has a Return On Assets of 1.87%. This is in the better half of the industry: AVNT outperforms 61.90% of its industry peers.
AVNT has a better Return On Equity (4.78%) than 64.29% of its industry peers.
AVNT has a Return On Invested Capital (3.94%) which is in line with 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 6.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 4.78% | ||
| ROIC | 3.94% |
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's Profit Margin of 3.49% is fine compared to the rest of the industry. AVNT outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of AVNT has declined.
AVNT has a Operating Margin of 7.95%. This is comparable to the rest of the industry: AVNT outperforms 48.81% of its industry peers.
AVNT's Operating Margin has improved in the last couple of years.
AVNT's Gross Margin of 32.21% is fine compared to the rest of the industry. AVNT outperforms 63.10% of its industry peers.
AVNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.95% | ||
| PM (TTM) | 3.49% | ||
| GM | 32.21% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNT is destroying value.
AVNT has more shares outstanding than it did 1 year ago.
AVNT has more shares outstanding than it did 5 years ago.
AVNT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that AVNT is in the distress zone and has some risk of bankruptcy.
AVNT's Altman-Z score of 1.72 is in line compared to the rest of the industry. AVNT outperforms 48.81% of its industry peers.
AVNT has a debt to FCF ratio of 13.05. This is a negative value and a sign of low solvency as AVNT would need 13.05 years to pay back of all of its debts.
AVNT has a Debt to FCF ratio of 13.05. This is comparable to the rest of the industry: AVNT outperforms 57.14% of its industry peers.
AVNT has a Debt/Equity ratio of 0.83. This is a neutral value indicating AVNT is somewhat dependend on debt financing.
The Debt to Equity ratio of AVNT (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.36
WACC10.89%
2.3 Liquidity
A Current Ratio of 2.03 indicates that AVNT has no problem at all paying its short term obligations.
AVNT has a Current ratio of 2.03. This is comparable to the rest of the industry: AVNT outperforms 53.57% of its industry peers.
AVNT has a Quick Ratio of 1.47. This is a normal value and indicates that AVNT is financially healthy and should not expect problems in meeting its short term obligations.
AVNT has a Quick ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.47 |
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%.
The Earnings Per Share has been growing slightly by 4.25% on average over the past years.
AVNT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.03%.
Measured over the past years, AVNT shows a small growth in Revenue. The Revenue has been growing by 2.51% on average per year.
EPS 1Y (TTM)2.23%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%7.69%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-1.07%
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 8.81% yearly.
AVNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
EPS Next Y7.79%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year0.18%
Revenue Next 2Y1.32%
Revenue Next 3Y1.96%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.55, the valuation of AVNT can be described as very reasonable.
AVNT's Price/Earnings ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 79.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. AVNT is valued rather cheaply when compared to this.
AVNT is valuated reasonably with a Price/Forward Earnings ratio of 10.16.
AVNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVNT is cheaper than 83.33% of the companies 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 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVNT indicates a somewhat cheap valuation: AVNT is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 9.92 |
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.
PEG (NY)1.48
PEG (5Y)2.72
EPS Next 2Y8.43%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, AVNT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.46, AVNT pays a bit more dividend than its industry peers.
AVNT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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 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
86.14% of the earnings are spent on dividend by AVNT. This is not a sustainable payout ratio.
AVNT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP86.14%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
31.77
+0.41 (+1.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.68%
Inst Owner Change-1.61%
Ins Owners0.53%
Ins Owner Change2.86%
Market Cap2.91B
Revenue(TTM)3.25B
Net Income(TTM)113.30M
Analysts81.33
Price Target42.27 (33.05%)
Short Float %1.63%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend1.03
Dividend Growth(5Y)5.71%
DP86.14%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.47%
Min EPS beat(2)-0.86%
Max EPS beat(2)-0.09%
EPS beat(4)0
Avg EPS beat(4)-0.66%
Min EPS beat(4)-1.47%
Max EPS beat(4)-0.09%
EPS beat(8)4
Avg EPS beat(8)2.28%
EPS beat(12)7
Avg EPS beat(12)7.29%
EPS beat(16)10
Avg EPS beat(16)5.66%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)-0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.39%
Revenue beat(12)2
Avg Revenue beat(12)-1.76%
Revenue beat(16)4
Avg Revenue beat(16)-1.38%
PT rev (1m)-3.37%
PT rev (3m)-3.34%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0.47%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.16 | ||
| P/S | 0.9 | ||
| P/FCF | 19.25 | ||
| P/OCF | 11.35 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.92 |
EPS(TTM)2.75
EY8.66%
EPS(NY)3.13
Fwd EY9.84%
FCF(TTM)1.65
FCFY5.19%
OCF(TTM)2.8
OCFY8.81%
SpS35.45
BVpS25.91
TBVpS-9.74
PEG (NY)1.48
PEG (5Y)2.72
Graham Number40.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 4.78% | ||
| ROCE | 4.82% | ||
| ROIC | 3.94% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 12.82% | ||
| OM | 7.95% | ||
| PM (TTM) | 3.49% | ||
| GM | 32.21% | ||
| FCFM | 4.65% |
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-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 13.05 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 56.8% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.81% | ||
| Profit Quality | 133.36% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.72 |
F-Score6
WACC10.89%
ROIC/WACC0.36
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 Y7.79%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue 1Y (TTM)1.03%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-1.07%
Revenue Next Year0.18%
Revenue Next 2Y1.32%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
EBIT growth 1Y-21.88%
EBIT growth 3Y2.11%
EBIT growth 5Y14.81%
EBIT Next Year59.55%
EBIT Next 3Y20.85%
EBIT Next 5YN/A
FCF growth 1Y57.07%
FCF growth 3Y0.93%
FCF growth 5Y-9.24%
OCF growth 1Y15.7%
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 11.55 and the Price/Book (PB) ratio is 1.23.
What is the earnings growth outlook for AVIENT CORP?
The Earnings per Share (EPS) of AVIENT CORP (AVNT) is expected to grow by 7.79% in the next year.