AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNT - US05368V1061 - Common Stock
30.59 USD
+0.22 (+0.72%)
30.59 USD
0 (0%)
AVNT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively. Finally AVNT also has an excellent dividend rating.
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.
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 in the better half of the industry: AVNT outperforms 61.73% of its industry peers.
AVNT has a better Return On Equity (5.04%) than 64.20% of its industry peers.
AVNT has a Return On Invested Capital (4.10%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVNT is in line with the industry average of 6.07%.
| 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 66.67% of its industry peers.
AVNT's Profit Margin has declined in the last couple of years.
The Operating Margin of AVNT (8.31%) is comparable to the rest of the industry.
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 64.20% 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
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.
Compared to 1 year ago, AVNT has a worse debt to assets ratio.
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.
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.
Looking at the Debt to FCF ratio, with a value of 13.49, AVNT is in line with its industry, outperforming 55.56% of the companies in the same industry.
AVNT has a Debt/Equity ratio of 0.86. This is a neutral value indicating AVNT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, AVNT is in line with its industry, outperforming 43.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.5
WACC8.16%
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 in line with its industry peers.
A Quick Ratio of 1.50 indicates that AVNT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, AVNT is in line with its industry, outperforming 59.26% of the companies in the same industry.
| 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%.
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.
The Revenue has been growing slightly by 3.11% 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)3.11%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%-1.07%
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.12, the valuation of AVNT can be described as very reasonable.
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.
AVNT is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.71, the valuation of AVNT can be described as reasonable.
81.48% of the companies in the same industry are more expensive than AVNT, based on the Price/Forward Earnings ratio.
AVNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 9.71 |
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 | 18.69 | ||
| EV/EBITDA | 9.53 |
4.3 Compensation for Growth
AVNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AVNT may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)2.62
EPS Next 2Y8.83%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, AVNT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.94, AVNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, AVNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 2Y8.83%
EPS Next 3Y9.35%
30.59
+0.22 (+0.72%)
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 Cap2.80B
Revenue(TTM)3.24B
Net Income(TTM)118.90M
Analysts81.33
Price Target42.27 (38.18%)
Short Float %1.58%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 | 11.12 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.86 | ||
| P/FCF | 18.69 | ||
| P/OCF | 10.96 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.53 |
EPS(TTM)2.75
EY8.99%
EPS(NY)3.15
Fwd EY10.3%
FCF(TTM)1.64
FCFY5.35%
OCF(TTM)2.79
OCFY9.12%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.53
PEG (5Y)2.62
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
WACC8.16%
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 11.12 and the Price/Book (PB) ratio is 1.19.
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.