AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - NYSE:AVNT - US05368V1061 - Common Stock
35.77 USD
-0.08 (-0.22%)
35.98 USD
+0.21 (+0.59%)
Overall AVNT gets a fundamental rating of 5 out of 10. We evaluated AVNT against 83 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.
1. Profitability
1.1 Basic Checks
In the past year AVNT was profitable.
In the past year AVNT had a positive cash flow from operations.
In the past 5 years AVNT has always been profitable.
AVNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVNT has a Return On Assets of 1.94%. This is comparable to the rest of the industry: AVNT outperforms 59.04% of its industry peers.
The Return On Equity of AVNT (5.04%) is better than 61.45% of its industry peers.
With a Return On Invested Capital value of 4.10%, AVNT perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
AVNT had an Average Return On Invested Capital over the past 3 years of 5.06%. This is in line with the industry average of 6.34%.
| 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)5.06%
ROIC(5y)5.26%
1.3 Margins
AVNT has a Profit Margin of 3.65%. This is in the better half of the industry: AVNT outperforms 65.06% of its industry peers.
In the last couple of years the Profit Margin of AVNT has declined.
Looking at the Operating Margin, with a value of 8.31%, AVNT is in line with its industry, outperforming 50.60% 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 32.97% is fine compared to the rest of the industry. AVNT outperforms 62.65% 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 | 32.97% |
OM growth 3Y6.37%
OM growth 5Y14.26%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y4.52%
GM growth 5Y7.61%
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.
AVNT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVNT has a worse debt to assets ratio.
2.2 Solvency
AVNT has an Altman-Z score of 1.77. This is a bad value and indicates that AVNT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AVNT (1.77) 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.
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 has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.48
WACC8.6%
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 49.40% of the companies in the same industry.
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.
The Quick ratio of AVNT (1.50) is better than 66.27% of 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 3.45%.
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 3.28%.
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)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
The Earnings Per Share is expected to grow by 10.93% 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 2.98% yearly.
EPS Next Y7.75%
EPS Next 2Y9.99%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year1.27%
Revenue Next 2Y2.57%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 13.25, AVNT is valued correctly.
Based on the Price/Earnings ratio, AVNT is valued a bit cheaper than 78.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVNT to the average of the S&P500 Index (27.20), we can say AVNT is valued rather cheaply.
A Price/Forward Earnings ratio of 11.12 indicates a reasonable valuation of AVNT.
Based on the Price/Forward Earnings ratio, AVNT is valued a bit cheaper than 78.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, AVNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AVNT is valued a bit cheaper than the industry average as 66.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.86 | ||
| EV/EBITDA | 10.62 |
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)1.71
PEG (5Y)3.12
EPS Next 2Y9.99%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 2.87%.
AVNT's Dividend Yield is a higher than the industry average which is at 3.43.
AVNT's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
81.08% of the earnings are spent on dividend by AVNT. 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 2Y9.99%
EPS Next 3Y10.93%
35.77
-0.08 (-0.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.69%
Inst Owner Change0.86%
Ins Owners0.52%
Ins Owner Change1.25%
Market Cap3.27B
Analysts81.43
Price Target43.73 (22.25%)
Short Float %1.53%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)1.78%
PT rev (3m)-0.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)1.22%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.01 | ||
| P/FCF | 21.86 | ||
| P/OCF | 12.82 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.62 |
EPS(TTM)2.7
EY7.55%
EPS(NY)3.22
Fwd EY9%
FCF(TTM)1.64
FCFY4.57%
OCF(TTM)2.79
OCFY7.8%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.71
PEG (5Y)3.12
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 | 32.97% | ||
| FCFM | 4.6% |
ROA(3y)5.25%
ROA(5y)4.61%
ROE(3y)13.57%
ROE(5y)12.29%
ROIC(3y)5.06%
ROIC(5y)5.26%
ROICexc(3y)5.69%
ROICexc(5y)6.05%
ROICexgc(3y)19.27%
ROICexgc(5y)19.24%
ROCE(3y)6.19%
ROCE(5y)6.44%
ROICexcg growth 3Y1.47%
ROICexcg growth 5Y-2.8%
ROICexc growth 3Y-3.41%
ROICexc growth 5Y-3.57%
OM growth 3Y6.37%
OM growth 5Y14.26%
PM growth 3Y-9.09%
PM growth 5Y-23.95%
GM growth 3Y4.52%
GM growth 5Y7.61%
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 | 1.77 |
F-Score5
WACC8.6%
ROIC/WACC0.48
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 Y7.75%
EPS Next 2Y9.99%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%1.98%
Revenue Next Year1.27%
Revenue Next 2Y2.57%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y-16.27%
EBIT growth 3Y5.57%
EBIT growth 5Y17.13%
EBIT Next Year61.5%
EBIT Next 3Y23.09%
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%