AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNT - US05368V1061 - Common Stock
34.29 USD
+1.28 (+3.88%)
34.29 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. While AVNT has a great profitability rating, there are quite some concerns on its financial health. 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.
In the past year AVNT had a positive cash flow from operations.
AVNT had positive earnings in each of the past 5 years.
AVNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AVNT (1.87%) is better than 61.45% of its industry peers.
The Return On Equity of AVNT (4.78%) is better than 63.86% of its industry peers.
AVNT's Return On Invested Capital of 5.04% is fine compared to the rest of the industry. AVNT outperforms 61.45% of its industry peers.
AVNT had an Average Return On Invested Capital over the past 3 years of 4.38%. This is in line with the industry average of 6.10%.
The last Return On Invested Capital (5.04%) for AVNT is above the 3 year average (4.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 4.78% | ||
| ROIC | 5.04% |
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 66.27% of its industry peers.
AVNT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 10.19%, AVNT perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNT has grown nicely.
With a decent Gross Margin value of 32.21%, AVNT is doing good in the industry, outperforming 62.65% of the companies in the same industry.
AVNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.19% | ||
| 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
AVNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AVNT has been increased compared to 1 year ago.
The number of shares outstanding for AVNT has been increased compared to 5 years ago.
Compared to 1 year ago, AVNT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that AVNT is in the distress zone and has some risk of bankruptcy.
AVNT has a Altman-Z score (1.80) which is in line with its industry peers.
The Debt to FCF ratio of AVNT is 13.05, which is on the high side as it means it would take AVNT, 13.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AVNT (13.05) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.83 indicates that AVNT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, AVNT is in line with its industry, outperforming 42.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.45
WACC11.13%
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 comparable to the rest of the industry.
A Quick Ratio of 1.47 indicates that AVNT should not have too much problems paying its short term obligations.
AVNT's Quick ratio of 1.47 is in line compared to the rest of the industry. AVNT outperforms 57.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.47 |
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.
The Revenue has been growing slightly by 1.03% in the past year.
AVNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.51% yearly.
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
The Earnings Per Share is expected to grow by 8.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.96% on average over the next years.
EPS Next Y7.79%
EPS Next 2Y8.34%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year0.18%
Revenue Next 2Y1.26%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.47, which indicates a correct valuation of AVNT.
Based on the Price/Earnings ratio, AVNT is valued cheaper than 80.72% of the companies in the same industry.
AVNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 10.98 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 84.34% 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNT is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
AVNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.78 | ||
| EV/EBITDA | 9.04 |
4.3 Compensation for Growth
AVNT's 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)1.6
PEG (5Y)2.93
EPS Next 2Y8.34%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 3.33%.
AVNT's Dividend Yield is a higher than the industry average which is at 2.34.
Compared to an average S&P500 Dividend Yield of 1.92, AVNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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 86.14% 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.
DP86.14%
EPS Next 2Y8.34%
EPS Next 3Y8.81%
34.29
+1.28 (+3.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners101.9%
Inst Owner Change0%
Ins Owners0.55%
Ins Owner Change2.87%
Market Cap3.14B
Revenue(TTM)3.25B
Net Income(TTM)113.30M
Analysts81.33
Price Target42.27 (23.27%)
Short Float %2.53%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.03
Dividend Growth(5Y)5.71%
DP86.14%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
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)0%
PT rev (3m)-4.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 10.98 | ||
| P/S | 0.97 | ||
| P/FCF | 20.78 | ||
| P/OCF | 12.24 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.04 |
EPS(TTM)2.75
EY8.02%
EPS(NY)3.12
Fwd EY9.11%
FCF(TTM)1.65
FCFY4.81%
OCF(TTM)2.8
OCFY8.17%
SpS35.45
BVpS25.91
TBVpS-9.74
PEG (NY)1.6
PEG (5Y)2.93
Graham Number40.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 4.78% | ||
| ROCE | 6.18% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 16.43% | ||
| OM | 10.19% | ||
| 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 | 3.82 | ||
| Cap/Depr | 56.8% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.68% | ||
| Profit Quality | 133.36% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.8 |
F-Score6
WACC11.13%
ROIC/WACC0.45
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 2Y8.34%
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 2Y1.26%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
EBIT growth 1Y0.09%
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
Can you provide the ChartMill fundamental rating for AVIENT CORP?
ChartMill assigns a fundamental rating of 5 / 10 to AVNT.
Can you provide the valuation status for AVIENT CORP?
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 7 / 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 12.47 and the Price/Book (PB) ratio is 1.32.
Can you provide the expected EPS growth for AVNT stock?
The Earnings per Share (EPS) of AVIENT CORP (AVNT) is expected to grow by 7.79% in the next year.