AVIENT CORP (AVNT) Stock Fundamental Analysis
USA - NYSE:AVNT - US05368V1061 - Common Stock
29.81 USD
+0.18 (+0.61%)
29.81 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. There are concerns on the financial health of AVNT while its profitability can be described as average. AVNT has a decent growth rate and is not valued too expensively. AVNT also has an excellent dividend rating.
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.
AVNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVNT's Return On Assets of 1.94% is in line compared to the rest of the industry. AVNT outperforms 58.54% of its industry peers.
AVNT has a better Return On Equity (5.04%) than 62.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.10%, AVNT is in line with its industry, outperforming 51.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVNT is in line with the industry average of 6.12%.
| 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 better Profit Margin (3.65%) than 64.63% 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 50.00% 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 64.63% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNT is destroying value.
Compared to 1 year ago, AVNT has more shares outstanding
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
Based on the Altman-Z score of 1.68, we must say that AVNT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AVNT (1.68) is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 13.49, AVNT is in line with its industry, outperforming 54.88% 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.
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 | 1.68 |
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 of 2.03. This is comparable to the rest of the industry: AVNT outperforms 50.00% of 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.
With a decent Quick ratio value of 1.50, AVNT is doing good in the industry, outperforming 62.20% of the companies in the same industry.
| 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 2.23% over the past year.
The Earnings Per Share has been growing slightly by 4.25% on average over the past years.
The Revenue has been growing slightly by 3.11% in the past year.
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)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
The Earnings Per Share is expected to grow by 9.35% on average over the next years. This is quite good.
Based on estimates for the next years, AVNT will show a small growth in Revenue. The Revenue will grow by 2.49% on average per year.
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.
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
Based on the Price/Earnings ratio of 10.84, the valuation of AVNT can be described as reasonable.
79.27% of the companies in the same industry are more expensive than AVNT, based on the Price/Earnings ratio.
AVNT is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.46, the valuation of AVNT can be described as reasonable.
Based on the Price/Forward Earnings ratio, AVNT is valued cheaper than 81.71% of the companies 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 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
AVNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AVNT is cheaper than 62.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVNT indicates a somewhat cheap valuation: AVNT is cheaper than 69.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.22 | ||
| EV/EBITDA | 9.38 |
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)1.49
PEG (5Y)2.55
EPS Next 2Y8.83%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
AVNT has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
AVNT's Dividend Yield is a higher than the industry average which is at 3.97.
Compared to an average S&P500 Dividend Yield of 2.36, AVNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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
AVNT pays out 81.08% 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.
DP81.08%
EPS Next 2Y8.83%
EPS Next 3Y9.35%
29.81
+0.18 (+0.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-0.97%
Ins Owners0.52%
Ins Owner Change1.31%
Market Cap2.73B
Revenue(TTM)3.24B
Net Income(TTM)118.90M
Analysts81.33
Price Target43.75 (46.76%)
Short Float %1.63%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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)-1.28%
PT rev (3m)1.81%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 9.46 | ||
| P/S | 0.84 | ||
| P/FCF | 18.22 | ||
| P/OCF | 10.68 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.38 |
EPS(TTM)2.75
EY9.23%
EPS(NY)3.15
Fwd EY10.57%
FCF(TTM)1.64
FCFY5.49%
OCF(TTM)2.79
OCFY9.36%
SpS35.56
BVpS25.76
TBVpS-10.11
PEG (NY)1.49
PEG (5Y)2.55
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 | 1.68 |
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)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 10.84 and the Price/Book (PB) ratio is 1.16.
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.