AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - NYSE:AVNT - US05368V1061 - Common Stock
29.29 USD
-0.86 (-2.85%)
29.29 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AVNT. AVNT was compared to 82 industry peers in the Chemicals industry. There are concerns on the financial health of AVNT while its profitability can be described as average. AVNT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AVNT had positive earnings in the past year.
AVNT had a positive operating cash flow in the past year.
Each year in the past 5 years AVNT has been profitable.
In the past 5 years AVNT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AVNT (1.94%) is comparable to the rest of the industry.
AVNT has a better Return On Equity (5.04%) than 62.20% of its industry peers.
With a Return On Invested Capital value of 4.10%, AVNT perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVNT is in line with the industry average of 6.09%.
| 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
With a decent Profit Margin value of 3.65%, AVNT is doing good in the industry, outperforming 64.63% of the companies in the same industry.
AVNT's Profit Margin has declined in the last couple of years.
AVNT has a Operating Margin of 8.31%. This is comparable to the rest of the industry: AVNT outperforms 50.00% of its industry peers.
AVNT's Operating Margin has improved in the last couple of years.
AVNT has a Gross Margin of 32.70%. This is in the better half of the industry: AVNT outperforms 65.85% of its industry peers.
AVNT's Gross Margin has improved in the last couple of years.
| 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
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.
The debt/assets ratio for AVNT is higher compared to a year ago.
2.2 Solvency
AVNT has an Altman-Z score of 1.68. This is a bad value and indicates that AVNT is not financially healthy and even has some risk of bankruptcy.
AVNT has a Altman-Z score (1.68) which is comparable to the rest of the industry.
AVNT has a debt to FCF ratio of 13.49. This is a negative value and a sign of low solvency as AVNT would need 13.49 years to pay back of all of its debts.
AVNT's Debt to FCF ratio of 13.49 is in line compared to the rest of the industry. AVNT outperforms 56.10% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that AVNT is somewhat dependend on debt financing.
AVNT has a Debt to Equity ratio (0.86) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.68 |
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.
Looking at the Current ratio, with a value of 2.03, AVNT is in line with its industry, 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.
The Quick ratio of AVNT (1.50) is better than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.23% over the past year.
AVNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.25% yearly.
AVNT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.11%.
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)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
With a Price/Earnings ratio of 10.65, the valuation of AVNT can be described as very reasonable.
79.27% of the companies in the same industry are more expensive than AVNT, based on the Price/Earnings ratio.
AVNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
AVNT is valuated reasonably with a Price/Forward Earnings ratio of 9.30.
Based on the Price/Forward Earnings ratio, AVNT is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
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.
69.51% of the companies in the same industry are more expensive than AVNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.9 | ||
| EV/EBITDA | 9.32 |
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)1.46
PEG (5Y)2.5
EPS Next 2Y8.83%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.65%, AVNT has a reasonable but not impressive dividend return.
AVNT's Dividend Yield is a higher than the industry average which is at 4.00.
AVNT's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| 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 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
AVNT pays out 81.08% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AVNT is growing, but earnings are growing more, so the dividend growth is 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-1.6%
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)-0.48%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.27%
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 | 9.32 |
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 | 1.68 |
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.