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ASIX

AdvanSix NYSE:ASIX Stock Report

Last Price

US$34.63

Market Cap

US$973.2m

7D

2.5%

1Y

18.0%

Updated

27 Jun, 2022

Data

Company Financials +
ASIX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends2/6

ASIX Stock Overview

AdvanSix Inc. manufactures and sells polymer resins in the United States and internationally.

Rewards

Trading at 72.5% below our estimate of its fair value

Earnings grew by 166.2% over the past year

Risk Analysis

No risks detected for ASIX from our risk checks.

AdvanSix Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AdvanSix
Historical stock prices
Current Share PriceUS$34.63
52 Week HighUS$57.10
52 Week LowUS$27.54
Beta1.77
1 Month Change-25.89%
3 Month Change-34.18%
1 Year Change18.03%
3 Year Change37.80%
5 Year Change10.11%
Change since IPO108.11%

Recent News & Updates

Jun 23
We Think AdvanSix (NYSE:ASIX) Can Stay On Top Of Its Debt

We Think AdvanSix (NYSE:ASIX) Can Stay On Top Of Its Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

May 30

AdvanSix: Undervalued Thanks To Agriculture Tailwinds

AdvanSix is a small chemical supplier with a number of tailwinds, making it an attractive trading opportunity. The company benefits from a short and effective domestic chemical supply chain in times of shortages and re-shoring plans. Moreover, sky-high margins in agriculture fuel its ammonium sulfate sales. High free cash flow is about to erase all of its net debt, supporting buybacks, its dividend, and new acquisitions.

Shareholder Returns

ASIXUS ChemicalsUS Market
7D2.5%2.9%6.3%
1Y18.0%-9.0%-18.8%

Return vs Industry: ASIX exceeded the US Chemicals industry which returned -8.4% over the past year.

Return vs Market: ASIX exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is ASIX's price volatile compared to industry and market?
ASIX volatility
ASIX Average Weekly Movement7.4%
Chemicals Industry Average Movement7.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: ASIX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ASIX's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20161,375Erin Kanehttps://www.advansix.com

AdvanSix Inc. manufactures and sells polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, alpha-methyl styrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide.

AdvanSix Fundamentals Summary

How do AdvanSix's earnings and revenue compare to its market cap?
ASIX fundamental statistics
Market CapUS$973.22m
Earnings (TTM)US$174.73m
Revenue (TTM)US$1.79b

5.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASIX income statement (TTM)
RevenueUS$1.79b
Cost of RevenueUS$1.47b
Gross ProfitUS$319.07m
Other ExpensesUS$144.33m
EarningsUS$174.73m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.22
Gross Margin17.85%
Net Profit Margin9.78%
Debt/Equity Ratio33.4%

How did ASIX perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

6%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ASIX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ASIX?

Other financial metrics that can be useful for relative valuation.

ASIX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA4.4x
PEG Ratio12.9x

Price to Earnings Ratio vs Peers

How does ASIX's PE Ratio compare to its peers?

ASIX PE Ratio vs Peers
The above table shows the PE ratio for ASIX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11x
OEC Orion Engineered Carbons
6.4xn/aUS$921.0m
WLKP Westlake Chemical Partners
10.7x8.3%US$891.6m
HWKN Hawkins
15xn/aUS$773.4m
SWM Schweitzer-Mauduit International
11.9xn/aUS$805.8m
ASIX AdvanSix
5.6x0.4%US$973.2m

Price-To-Earnings vs Peers: ASIX is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (11x).


Price to Earnings Ratio vs Industry

How does ASIX's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: ASIX is good value based on its Price-To-Earnings Ratio (5.6x) compared to the US Chemicals industry average (16.1x)


Price to Earnings Ratio vs Fair Ratio

What is ASIX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ASIX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio11.7x

Price-To-Earnings vs Fair Ratio: ASIX is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).


Share Price vs Fair Value

What is the Fair Price of ASIX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ASIX ($34.63) is trading below our estimate of fair value ($125.78)

Significantly Below Fair Value: ASIX is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: ASIX is poor value based on its PEG Ratio (12.9x)


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Future Growth

How is AdvanSix forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASIX's forecast earnings growth (0.4% per year) is below the savings rate (1.9%).

Earnings vs Market: ASIX's earnings (0.4% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: ASIX's earnings are forecast to grow, but not significantly.

Revenue vs Market: ASIX's revenue (1.5% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: ASIX's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ASIX's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has AdvanSix performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASIX has high quality earnings.

Growing Profit Margin: ASIX's current net profit margins (9.8%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: ASIX's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: ASIX's earnings growth over the past year (166.2%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: ASIX earnings growth over the past year (166.2%) exceeded the Chemicals industry 30.2%.


Return on Equity

High ROE: ASIX's Return on Equity (26.5%) is considered high.


Discover strong past performing companies

Financial Health

How is AdvanSix's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ASIX's short term assets ($412.5M) exceed its short term liabilities ($307.3M).

Long Term Liabilities: ASIX's short term assets ($412.5M) do not cover its long term liabilities ($491.5M).


Debt to Equity History and Analysis

Debt Level: ASIX's net debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: ASIX's debt to equity ratio has reduced from 108.3% to 33.4% over the past 5 years.

Debt Coverage: ASIX's debt is well covered by operating cash flow (95.9%).

Interest Coverage: ASIX's interest payments on its debt are well covered by EBIT (57.9x coverage).


Balance Sheet


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Dividend

What is AdvanSix current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ASIX's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: ASIX's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (4.23%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ASIX's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ASIX's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6%), ASIX's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.5%), ASIX's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Erin Kane (44 yo)

5.67yrs

Tenure

US$5,751,844

Compensation

Ms. Erin N. Kane has been Independent Director of The Chemours Company since June 18, 2019. She serves as Director of AIChE. Ms. Kane has been the Director, President and Chief Executive Officer of AdvanSi...


CEO Compensation Analysis

Compensation vs Market: Erin's total compensation ($USD5.75M) is above average for companies of similar size in the US market ($USD4.02M).

Compensation vs Earnings: Erin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ASIX's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: ASIX's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AdvanSix Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: AdvanSix Inc.
  • Ticker: ASIX
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: US$973.217m
  • Shares outstanding: 28.10m
  • Website: https://www.advansix.com

Number of Employees


Location

  • AdvanSix Inc.
  • 300 Kimball Drive
  • Suite 101
  • Parsippany
  • New Jersey
  • 7054
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.