AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - NYSE:AVNT - US05368V1061 - Common Stock
31.93 USD
+0.57 (+1.82%)
31.93 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AVNT. AVNT was compared to 83 industry peers in the Chemicals industry. There are concerns on the financial health of AVNT while its profitability can be described as average. AVNT has a correct valuation and a medium growth rate. 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.
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
Looking at the Return On Assets, with a value of 1.94%, AVNT is in line with its industry, outperforming 59.04% of the companies in the same industry.
The Return On Equity of AVNT (5.04%) is better than 61.45% of its industry peers.
The Return On Invested Capital of AVNT (4.10%) 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 6.30%.
| 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 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.
AVNT has a Operating Margin of 8.31%. This is comparable to the rest of the industry: AVNT outperforms 49.40% of its industry peers.
In the last couple of years the Operating Margin of AVNT has grown nicely.
AVNT has a better Gross Margin (32.70%) than 63.86% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNT 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.
AVNT has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 1.71, AVNT perfoms like the industry average, outperforming 43.37% 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 of 13.49. This is comparable to the rest of the industry: AVNT outperforms 54.22% of its industry peers.
AVNT has a Debt/Equity ratio of 0.86. This is a neutral value indicating AVNT is somewhat dependend on debt financing.
The Debt to Equity ratio of AVNT (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.5
WACC8.11%
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.
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 of 1.50. This is in the better half of the industry: AVNT outperforms 65.06% 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.
The Earnings Per Share has been growing slightly by 4.25% on average over the past years.
Looking at the last year, AVNT shows a small growth in Revenue. The Revenue has grown by 3.28% in the last 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)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
Based on estimates for the next years, AVNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.28% on average per year.
AVNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
EPS Next Y7.58%
EPS Next 2Y9.54%
EPS Next 3Y10.28%
EPS Next 5YN/A
Revenue Next Year1.24%
Revenue Next 2Y2.27%
Revenue Next 3Y2.61%
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
The Price/Earnings ratio is 11.83, which indicates a very decent valuation of AVNT.
AVNT's Price/Earnings ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 79.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, AVNT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.00, which indicates a very decent valuation of AVNT.
81.93% of the companies in the same industry are more expensive than AVNT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, AVNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AVNT is valued a bit cheaper than the industry average as 67.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.51 | ||
| EV/EBITDA | 9.85 |
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)1.56
PEG (5Y)2.78
EPS Next 2Y9.54%
EPS Next 3Y10.28%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 3.53%.
Compared to an average industry Dividend Yield of 3.76, 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 | 3.53% |
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 81.08% of its income as dividend. 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 2Y9.54%
EPS Next 3Y10.28%
31.93
+0.57 (+1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-0.71%
Ins Owners0.52%
Ins Owner Change1.31%
Market Cap2.92B
Analysts81.33
Price Target44.31 (38.77%)
Short Float %1.68%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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)1.33%
PT rev (3m)0.74%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10 | ||
| P/S | 0.9 | ||
| P/FCF | 19.51 | ||
| P/OCF | 11.44 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.85 |
EPS(TTM)2.7
EY8.46%
EPS(NY)3.19
Fwd EY10%
FCF(TTM)1.64
FCFY5.13%
OCF(TTM)2.79
OCFY8.74%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.56
PEG (5Y)2.78
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%
ROICexcg growth 3Y-1.85%
ROICexcg 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
WACC8.11%
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 Y7.58%
EPS Next 2Y9.54%
EPS Next 3Y10.28%
EPS Next 5YN/A
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-0.76%
Revenue growth 5Y2.51%
Sales Q2Q%1.98%
Revenue Next Year1.24%
Revenue Next 2Y2.27%
Revenue Next 3Y2.61%
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%