NYSE:ASIX

Stock Analysis Report

Executive Summary

AdvanSix Inc. manufactures and sells polymer resins.

Rewards

PE ratio (7.3x) is below the US market (18.9x)

Earnings are forecast to grow 6.47% per year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Profit margins (4.7%) are lower than last year (7.9%)



Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Ube Industries

TSE:4208

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

4.4%

ASIX

2.7%

US Chemicals

1.7%

US Market


1 Year Return

-43.4%

ASIX

-0.9%

US Chemicals

23.2%

US Market

Return vs Industry: ASIX underperformed the US Chemicals industry which returned 1.6% over the past year.

Return vs Market: ASIX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ASIXIndustryMarket
7 Day4.4%2.7%1.7%
30 Day-21.6%0.9%4.2%
90 Day-26.6%6.0%11.9%
1 Year-43.4%-43.4%14.7%-0.9%25.8%23.2%
3 Year-34.4%-34.4%35.8%10.4%52.8%42.9%
5 Yearn/a49.5%17.6%75.2%55.8%

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?

7.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ASIX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ASIX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ASIX is good value based on its PE Ratio (7.3x) compared to the Chemicals industry average (20.8x).

PE vs Market: ASIX is good value based on its PE Ratio (7.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ASIX is poor value based on its PEG Ratio (1.1x)


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 (2.2x).


Next Steps

Future Growth

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

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASIX's forecast earnings growth (6.5% per year) is above the savings rate (1.7%).

Earnings vs Market: ASIX's earnings (6.5% per year) are forecast to grow slower than the US market (14.3% 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 (-0.2% per year).

High Growth Revenue: ASIX's revenue is forecast to decline over the next 3 years (-0.2% 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?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASIX has high quality earnings.

Growing Profit Margin: ASIX's current net profit margins (4.7%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: ASIX's earnings have grown by 4.8% 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 (-45.5%) over the past year, making it difficult to compare to the Chemicals industry average (-17%).


Return on Equity

High ROE: ASIX's Return on Equity (15.4%) 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 ($290.3M) exceed its short term liabilities ($286.7M).

Long Term Liabilities: ASIX's short term assets ($290.3M) do not cover its long term liabilities ($507.9M).


Debt to Equity History and Analysis

Debt Level: ASIX's debt to equity ratio (63.8%) 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 (55%).

Interest Coverage: ASIX's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASIX's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.1%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

What is the CEO of AdvanSix's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Erin Kane (42yo)

4yrs

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 ($USD3.25M) is above average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

4.0yrs

Average Tenure

49yo

Average Age

Experienced Management: ASIX's management team is considered experienced (4 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

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


Insider Trading

Insider Buying: ASIX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$98,10012 Dec 19
Sharon Spurlin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$19.74
BuyUS$100,36904 Dec 19
Michael Marberry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares5,100
Max PriceUS$19.74
BuyUS$101,40027 Nov 19
Daniel Sansone
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$20.28
BuyUS$92,82914 Aug 19
Michael Marberry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares4,350
Max PriceUS$21.34
BuyUS$99,86321 May 19
Michael Marberry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares3,700
Max PriceUS$26.99
BuyUS$109,48020 May 19
Daniel Sansone
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$27.37

Ownership Breakdown

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


Management Team

  • John Quitmeyer (68yo)

    Senior VP

    • Tenure: 4yrs
    • Compensation: US$1.50m
  • Erin Kane (42yo)

    CEO, President & Director

    • Tenure: 4yrs
    • Compensation: US$3.25m
  • Christopher Gramm (49yo)

    VP & Controller

    • Tenure: 3.3yrs
    • Compensation: US$614.85k
  • Jonathan Bellamy (53yo)

    Chief Human Resources Officer & Senior VP

    • Compensation: US$773.50k
  • Michael Preston (47yo)

    CFO & Senior VP

    • Tenure: 4yrs
    • Compensation: US$1.18m
  • Adam Kressel

    Director of Investor Relations


    Board Members

    • Dan Sansone (67yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$185.04k
    • Paul Huck (69yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$190.04k
    • Mike Marberry (61yo)

      Independent Chairman

      • Tenure: 3.3yrs
      • Compensation: US$240.04k
    • Darrell Hughes (54yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$170.04k
    • Todd Karran (54yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$170.04k
    • Sharon Spurlin (53yo)

      Independent Director

      • Tenure: 3.3yrs
      • Compensation: US$180.04k
    • Erin Kane (42yo)

      CEO, President & Director

      • Tenure: 4yrs
      • Compensation: US$3.25m

    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$462.229m
    • 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 Analysis2020/01/17 02:18
    End of Day Share Price2020/01/16 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.