NYSE:ASIX

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has AdvanSix's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASIX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.1%

ASIX

-3.6%

US Chemicals

-4.2%

US Market


1 Year Return

-50.8%

ASIX

-9.8%

US Chemicals

14.0%

US Market

Return vs Industry: ASIX underperformed the US Chemicals industry which returned -9.8% over the past year.

Return vs Market: ASIX underperformed the US Market which returned 14% over the past year.


Shareholder returns

ASIXIndustryMarket
7 Day-14.1%-3.6%-4.2%
30 Day-10.7%-2.7%-1.8%
90 Day-17.7%-3.6%2.6%
1 Year-50.8%-50.8%3.4%-9.8%16.3%14.0%
3 Year-39.5%-39.5%24.2%0.4%43.2%34.0%
5 Yearn/a32.7%3.9%65.9%47.6%

Price Volatility Vs. Market

How volatile is AdvanSix's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AdvanSix undervalued compared to its fair value and its price relative to the market?

11.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASIX ($16.51) is trading above our estimate of fair value ($0.62)

Significantly Below Fair Value: ASIX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ASIX is good value based on its PE Ratio (11.2x) compared to the Chemicals industry average (22x).

PE vs Market: ASIX is good value based on its PE Ratio (11.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ASIX is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ASIX is good value based on its PB Ratio (1.1x) compared to the US Chemicals industry average (1.9x).


Next Steps

Future Growth

How is AdvanSix forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASIX's forecast earnings growth (21.9% per year) is above the savings rate (1.7%).

Earnings vs Market: ASIX's earnings (21.9% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASIX's revenue (2.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ASIX's revenue (2.4% 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


Next Steps

Past Performance

How has AdvanSix performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASIX has high quality earnings.

Growing Profit Margin: ASIX's current net profit margins (3.2%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: ASIX's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: ASIX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASIX had negative earnings growth (-37.6%) over the past year, making it difficult to compare to the Chemicals industry average (-15.9%).


Return on Equity

High ROE: ASIX's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AdvanSix's financial position?


Financial Position Analysis

Short Term Liabilities: ASIX's short term assets ($290.5M) do not cover its short term liabilities ($291.7M).

Long Term Liabilities: ASIX's short term assets ($290.5M) do not cover its long term liabilities ($543.4M).


Debt to Equity History and Analysis

Debt Level: ASIX's debt to equity ratio (74.1%) is considered high.

Reducing Debt: Insufficient data to determine if ASIX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ASIX's debt is well covered by operating cash flow (40.5%).

Interest Coverage: ASIX's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet

Inventory Level: ASIX has a high level of physical assets or inventory.

Debt Coverage by Assets: ASIX's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ASIX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ASIX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ASIX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ASIX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ASIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Erin Kane (42yo)

4.1yrs

Tenure

US$3,250,079

Compensation

Ms. Erin N. Kane has been Independent Director of Chemours Company since June 18, 2019. Ms. Kane has been the Chief Executive Officer of AdvanSix Inc. since 2016 and serves as its President. Ms. Kane serve ...


CEO Compensation Analysis

Compensation vs Market: Erin's total compensation ($USD3.25M) is above average for companies of similar size in the US market ($USD1.72M).

Compensation vs Earnings: Erin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Erin Kane
CEO, President & Director4.1yrsUS$3.25m0.73% $3.3m
Michael Preston
CFO & Senior VP4.1yrsUS$1.18m0.25% $1.2m
John Quitmeyer
Senior VP4.1yrsUS$1.50m0.35% $1.6m
Jonathan Bellamy
Chief Human Resources Officer & Senior VP0yrsUS$773.50k0.10% $475.9k
Christopher Gramm
VP & Controller3.3yrsUS$614.85k0.10% $461.9k
Adam Kressel
Director of Investor Relations0yrsno datano data

4.1yrs

Average Tenure

49yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Erin Kane
CEO, President & Director4.1yrsUS$3.25m0.73% $3.3m
Daniel Sansone
Independent Director3.3yrsUS$185.04k0.072% $330.9k
Paul Huck
Independent Director3.3yrsUS$190.04k0.040% $182.3k
Michael Marberry
Independent Chairman3.3yrsUS$240.04k0.17% $766.6k
Darrell Hughes
Independent Director3.3yrsUS$170.04k0.0098% $45.2k
Todd Karran
Independent Director3.3yrsUS$170.04k0.040% $182.3k
Sharon Spurlin
Independent Director3.3yrsUS$180.04k0.057% $264.9k

3.3yrs

Average Tenure

54yo

Average Age

Experienced Board: ASIX's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ASIX 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AdvanSix Inc.
  • Ticker: ASIX
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$460.873m
  • Shares outstanding: 27.91m
  • Website: https://www.advansix.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASIXNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2016
960DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2016
ASIX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 2016

Biography

AdvanSix Inc. manufactures and sells polymer resins. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce engineered plastics, fibers, filaments, and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone, which is used by customers in the production of adhesives, paints, coatings, solvents, herbicides, and other engineered plastic resins, as well as other intermediate chemicals, including phenol, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, cyclohexanol, acetaldehyde oxime, 2-pentanone oxime, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capra, Sulf-N, Nadone, Naxol, and EZ-Blox brands. The company sells its products directly, as well as through distributors in North America, South America, and internationally. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 02:25
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.