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ASIX

AdvanSix NYSE:ASIX Stock Report

Last Price

US$31.94

Market Cap

US$894.5m

7D

-5.2%

1Y

-18.1%

Updated

23 Sep, 2022

Data

Company Financials +
ASIX fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance6/6
Financial Health6/6
Dividends3/6

ASIX Stock Overview

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

AdvanSix Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AdvanSix
Historical stock prices
Current Share PriceUS$31.94
52 Week HighUS$57.10
52 Week LowUS$30.86
Beta1.85
1 Month Change-17.42%
3 Month Change-8.46%
1 Year Change-18.10%
3 Year Change23.46%
5 Year Change-19.65%
Change since IPO91.95%

Recent News & Updates

Sep 23

AdvanSix: No Longer Advancing

Summary Shares of AdvanSix have seen a painful reversal in recent months. This comes despite very strong operating momentum. I like this combination, even as a substantial negative earnings revision seems in the works, appearing to be only a matter of time. In the spring I noted that AdvanSix (ASIX) was advancing along after a very strong 2021, driven by a combination of higher volumes, pass-through pricing and market pricing. The increase in earnings power and elimination of debt overhang created a compelling situation, as the company guided for a very strong 2022, ahead of the Ukraine war. Some Background AdvanSix was spun off from its former parent Honeywell (HON) all the way back in 2016. The company produces ammonium sulfates, nylon and chemical intermediates, typically seen as commodity products with associated pricing, although that some of the volatile component is hedged by strong correlation between input and energy prices. That is a bit too simplistic as input prices are largely tied to energy prices, while demand implications impact market pricing for the products as well. At the time of the spin-off, AdvanSix was posting sales of around $1.5 billion on which it posted EBITDA of $200 million and net earnings around half that number, equal to $3 per share, with shares trading around the $40 mark at the time. Poor cash flow conversion, the result of the need to upgrade facilities, and historically strong margins raised some questions as a 13 times earnings multiple optically looked compelling. Shares fell to the teens in early 2020, even ahead of the pandemic, as sales, earnings and cash flows were lagging, and with all metrics under pressure, relative leverage ratios were on the increase as well. Years of stagnation and increased focus on ESG made that I believed that the company was facing an uphill battle, which prevented me from taking a position. The $10 stock around the time of the pandemic rallied to $47 in spring 2022 as the company has seen incredible operating performance in 2021. Full year sales rose to $1.68 billion on which EBITDA of $255 million and earnings of $140 million were reported, for earnings of $4.81 per share. It must be said that earnings power only totaled $0.80 per share in the last quarter of the year. With earnings power trending between $3 and $5 per share, and net debt down to just $120 million, the future arguably looks a lot better. Debt reduction is driven by strong earnings power and the fact that the largest investment cycle to upgrade facilities seems to be a thing of the past by now with capital spending seen around a hundred million a year now. The strong performance even triggered the company into announcing a $100 million deal for US Amines. The question is how things would evolve in 2022. The war triggered great demand for ammonium sulfate with food supply threatened, yet higher energy prices would hurt the business as well. Being furthermore mindful of softer operating momentum, and judging 2021 earnings to be historically strong, I was not happy to join the ride at $47 in March, even as the outlook was still pretty decent. A Pullback After a brief run higher to $57 in the same month of March, shares are now back to $33 as the market and investors have feared and picked up the cyclical element of the business, as a net $14 drop from March marks for a serious pullback. First quarter sales rose 27%, entirely driven by pricing with volumes down 4%. The company posted a strong $103 million EBITDA number on $479 million in sales, as net earnings of $63 million came in at $2.15 per share. Second quarter sales growth accelerated to 33% as revenues came in at $584 million with GAAP earnings advancing further to $2.23 per share, as earnings still trend at a very impressive $8-$9 per share! Net debt fell further to $130 million despite the US Amine deal, with net debt just surpassing the quarterly EBITDA being generated.

Sep 19
Why AdvanSix Inc. (NYSE:ASIX) Could Be Worth Watching

Why AdvanSix Inc. (NYSE:ASIX) Could Be Worth Watching

AdvanSix Inc. ( NYSE:ASIX ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

ASIXUS ChemicalsUS Market
7D-5.2%-5.6%-5.2%
1Y-18.1%-14.9%-23.1%

Return vs Industry: ASIX underperformed the US Chemicals industry which returned -13.3% over the past year.

Return vs Market: ASIX exceeded the US Market which returned -21.6% over the past year.

Price Volatility

Is ASIX's price volatile compared to industry and market?
ASIX volatility
ASIX Average Weekly Movement5.5%
Chemicals Industry Average Movement6.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: ASIX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ASIX's weekly volatility (6%) 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$894.55m
Earnings (TTM)US$195.76m
Revenue (TTM)US$1.93b

4.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASIX income statement (TTM)
RevenueUS$1.93b
Cost of RevenueUS$1.59b
Gross ProfitUS$345.17m
Other ExpensesUS$149.41m
EarningsUS$195.76m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.99
Gross Margin17.85%
Net Profit Margin10.13%
Debt/Equity Ratio20.4%

How did ASIX perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

7%

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

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue0.6x
Enterprise Value/EBITDA3.5x
PEG Ratio0.7x

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 Average10x
TSE Trinseo
5.3xn/aUS$720.1m
HWKN Hawkins
14.5xn/aUS$791.5m
OEC Orion Engineered Carbons
10.5x25.3%US$887.8m
WLKP Westlake Chemical Partners
9.6x5.0%US$721.2m
ASIX AdvanSix
4.6x7.0%US$894.5m

Price-To-Earnings vs Peers: ASIX is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (10x).


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 (4.6x) compared to the US Chemicals industry average (14.3x)


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 Ratio4.6x
Fair PE Ratio13.5x

Price-To-Earnings vs Fair Ratio: ASIX is good value based on its Price-To-Earnings Ratio (4.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).


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 ($31.94) is trading below our estimate of fair value ($130.24)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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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

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASIX's forecast earnings growth (7% per year) is above the savings rate (1.9%).

Earnings vs Market: ASIX's earnings (7% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: ASIX's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: ASIX's revenue is forecast to decline over the next 3 years (-2.4% 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


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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


10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASIX has high quality earnings.

Growing Profit Margin: ASIX's current net profit margins (10.1%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: ASIX's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: ASIX's earnings growth over the past year (99.1%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: ASIX earnings growth over the past year (99.1%) exceeded the Chemicals industry 21.1%.


Return on Equity

High ROE: ASIX's Return on Equity (27.2%) is considered high.


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Financial Health

How is AdvanSix's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • 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 ($435.9M) exceed its short term liabilities ($356.3M).

Long Term Liabilities: ASIX's short term assets ($435.9M) exceed its long term liabilities ($407.7M).


Debt to Equity History and Analysis

Debt Level: ASIX's net debt to equity ratio (18%) is considered satisfactory.

Reducing Debt: ASIX's debt to equity ratio has reduced from 97.3% to 20.4% over the past 5 years.

Debt Coverage: ASIX's debt is well covered by operating cash flow (174%).

Interest Coverage: ASIX's interest payments on its debt are well covered by EBIT (76.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ASIX's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: ASIX's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (4.45%).


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 (7.5%), ASIX's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.8%), 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?

5.9yrs

Average management tenure


CEO

Erin Kane (45 yo)

5.92yrs

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 ($USD5.75M) is above average for companies of similar size in the US market ($USD4.08M).

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 seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: ASIX's board of directors are considered experienced (5.9 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

NYSE:ASIX Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
24 Feb 22BuyUS$24,762Michael MarberryIndividual713US$34.73

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 62.9% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.93%
BlackRock, Inc.
4,741,057$151.4m3.3%no data
8.18%
The Vanguard Group, Inc.
2,291,147$73.2m8.86%no data
4.98%
Dimensional Fund Advisors LP
1,395,559$44.6m1.51%0.01%
3.49%
State Street Global Advisors, Inc.
976,269$31.2m2.19%no data
2.61%
AllianceBernstein L.P.
730,042$23.3m-14.07%0.01%
2.41%
LSV Asset Management
673,989$21.5m-1.36%0.05%
2.27%
Victory Capital Management Inc.
635,433$20.3m6.57%0.02%
2.18%
Wasatch Advisors Inc
609,390$19.5m-0.06%0.1%
1.72%
Geode Capital Management, LLC
482,472$15.4m-0.09%no data
1.55%
Scopus Asset Management, L.P.
435,144$13.9m74.06%1.18%
1.55%
FMR LLC
433,571$13.8m42.47%no data
1.46%
BNY Mellon Asset Management
408,924$13.1m-10.21%no data
1.44%
J.P. Morgan Asset Management, Inc.
404,398$12.9m44.6%no data
1.34%
Jacobs Levy Equity Management Inc
374,939$12.0m14.47%0.1%
1.29%
Charles Schwab Investment Management, Inc.
360,686$11.5m-1.51%no data
1.11%
Rothschild & Co Asset Management US Inc.
310,114$9.9m-8.05%0.15%
1.08%
Invesco Capital Management LLC
301,113$9.6m-15.41%0.01%
1.07%
Northern Trust Global Investments
298,495$9.5m1.58%no data
1%
Erin Kane
279,682$8.9m0%no data
0.93%
Thompson, Siegel & Walmsley LLC
260,441$8.3m1.51%0.11%
0.93%
Bridgeway Capital Management, LLC
259,800$8.3m-16.14%0.19%
0.88%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
245,358$7.8m-1.87%no data
0.87%
Morgan Stanley, Investment Banking and Brokerage Investments
243,727$7.8m-6.32%no data
0.86%
American Century Investment Management Inc
240,659$7.7m24.59%0.01%
0.8%
Hotchkis and Wiley Capital Management, LLC
223,170$7.1m-9.05%0.03%

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$894.548m
  • Shares outstanding: 28.01m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/23 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
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.