AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - NYSE:AVNT - US05368V1061 - Common Stock
31.29 USD
-0.79 (-2.46%)
31.29 USD
0 (0%)
Taking everything into account, AVNT scores 5 out of 10 in our fundamental rating. AVNT was compared to 82 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.
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
AVNT has a Return On Assets of 1.94%. This is comparable to the rest of the industry: AVNT outperforms 58.54% of its industry peers.
AVNT's Return On Equity of 5.04% is fine compared to the rest of the industry. AVNT outperforms 60.98% of its industry peers.
With a Return On Invested Capital value of 4.10%, AVNT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVNT is in line with the industry average of 6.23%.
| 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
The Profit Margin of AVNT (3.65%) is better than 64.63% 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 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNT has grown nicely.
AVNT's Gross Margin of 32.70% is fine compared to the rest of the industry. AVNT outperforms 63.41% 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.
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 1.71. This is a bad value and indicates that AVNT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, AVNT is in line with its industry, outperforming 42.68% 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 in line with its industry peers.
A Debt/Equity ratio of 0.86 indicates that AVNT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, AVNT perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.5
WACC8.15%
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 (2.03) which is comparable to the rest of the industry.
A Quick Ratio of 1.50 indicates that AVNT should not have too much problems paying its short term obligations.
AVNT has a Quick ratio of 1.50. This is in the better half of the industry: AVNT outperforms 65.85% 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 3.45% over the past year.
Measured over the past 5 years, AVNT shows a small growth in Earnings Per Share. The EPS has been growing by 4.25% on average per year.
Looking at the last year, AVNT shows a small growth in Revenue. The Revenue has grown by 3.28% in the last year.
The Revenue has been growing slightly by 2.51% on average over the past years.
EPS 1Y (TTM)3.45%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%5.26%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%1.98%
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 9.35% yearly.
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
With a Price/Earnings ratio of 11.59, the valuation of AVNT can be described as very reasonable.
76.83% of the companies in the same industry are more expensive than AVNT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, AVNT is valued rather cheaply.
AVNT is valuated reasonably with a Price/Forward Earnings ratio of 9.93.
Based on the Price/Forward Earnings ratio, AVNT is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
AVNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA ratio is in line with the industry average.
67.07% 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 | 19.12 | ||
| EV/EBITDA | 9.72 |
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)1.59
PEG (5Y)2.73
EPS Next 2Y8.83%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.49%, 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.
Compared to an average S&P500 Dividend Yield of 2.38, AVNT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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
81.08% 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.
DP81.08%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
31.29
-0.79 (-2.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-0.67%
Ins Owners0.52%
Ins Owner Change1.31%
Market Cap2.86B
Revenue(TTM)3.25B
Net Income(TTM)118.90M
Analysts81.33
Price Target43.75 (39.82%)
Short Float %1.63%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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)0.03%
PT rev (3m)-0.55%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 9.93 | ||
| P/S | 0.88 | ||
| P/FCF | 19.12 | ||
| P/OCF | 11.21 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.72 |
EPS(TTM)2.7
EY8.63%
EPS(NY)3.15
Fwd EY10.07%
FCF(TTM)1.64
FCFY5.23%
OCF(TTM)2.79
OCFY8.92%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.59
PEG (5Y)2.73
Graham Number39.56
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 | 1.71 |
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)3.45%
EPS 3Y-4.35%
EPS 5Y4.25%
EPS Q2Q%5.26%
EPS Next Y7.28%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
EPS Next 5YN/A
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%1.98%
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 11.59 and the Price/Book (PB) ratio is 1.21.
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.