AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNT - US05368V1061 - Common Stock
30.28 USD
+0.99 (+3.38%)
30.28 USD
0 (0%)
Overall AVNT gets a fundamental rating of 5 out of 10. We evaluated AVNT against 81 industry peers in the Chemicals industry. AVNT has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
AVNT had positive earnings in the past year.
AVNT had a positive operating cash flow in the past year.
In the past 5 years AVNT has always 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 better than 61.73% of its industry peers.
AVNT has a Return On Equity of 5.04%. This is in the better half of the industry: AVNT outperforms 64.20% of its industry peers.
AVNT has a Return On Invested Capital of 4.10%. This is comparable to the rest of the industry: AVNT outperforms 55.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNT is in line with the industry average of 6.08%.
| 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's Profit Margin of 3.65% 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.
With a Operating Margin value of 8.31%, AVNT perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNT has grown nicely.
AVNT has a better Gross Margin (32.70%) than 64.20% 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
AVNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AVNT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AVNT has been increased compared to 5 years ago.
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.
AVNT has a Altman-Z score (1.69) which is in line with its industry peers.
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.
The Debt to FCF ratio of AVNT (13.49) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that AVNT is somewhat dependend on debt financing.
AVNT's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. AVNT outperforms 43.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.5
WACC8.15%
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.
AVNT has a Current ratio (2.03) which is in line with its industry peers.
AVNT has a Quick Ratio of 1.50. 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 (1.50) which is in line with its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 4.25% on average over the past years.
The Revenue has been growing slightly by 3.11% in the past year.
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.
The Revenue is expected to grow by 2.49% on average over the next years.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.01 indicates a reasonable valuation of AVNT.
Based on the Price/Earnings ratio, AVNT is valued a bit cheaper than the industry average as 79.01% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AVNT to the average of the S&P500 Index (25.98), we can say AVNT is valued rather cheaply.
A Price/Forward Earnings ratio of 9.61 indicates a reasonable valuation of AVNT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVNT indicates a rather cheap valuation: AVNT is cheaper than 80.25% 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 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 61.73% of the companies in the same industry.
AVNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 9.51 |
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)1.51
PEG (5Y)2.59
EPS Next 2Y8.83%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, AVNT is a good candidate for dividend investing.
AVNT's Dividend Yield is a higher than the industry average which is at 4.16.
AVNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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
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%
30.28
+0.99 (+3.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-1.61%
Ins Owners0.52%
Ins Owner Change1.31%
Market Cap2.77B
Revenue(TTM)3.24B
Net Income(TTM)118.90M
Analysts81.33
Price Target42.27 (39.6%)
Short Float %1.58%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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)-4.6%
PT rev (3m)-2.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.61 | ||
| P/S | 0.85 | ||
| P/FCF | 18.5 | ||
| P/OCF | 10.85 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.51 |
EPS(TTM)2.75
EY9.08%
EPS(NY)3.15
Fwd EY10.41%
FCF(TTM)1.64
FCFY5.4%
OCF(TTM)2.79
OCFY9.21%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.51
PEG (5Y)2.59
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
WACC8.15%
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 11.01 and the Price/Book (PB) ratio is 1.18.
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.