NYSE:POL

Stock Analysis Report

Executive Summary

PolyOne Corporation provides specialized polymer materials, services, and solutions in the United States, Canada, Mexico, Europe, South America, and Asia.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-9.7%

POL

-0.5%

US Chemicals

-0.6%

US Market


1 Year Return

-30.1%

POL

-13.6%

US Chemicals

0.7%

US Market

POL underperformed the Chemicals industry which returned -14.3% over the past year.

POL underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

POLIndustryMarket
7 Day-9.7%-0.5%-0.6%
30 Day3.0%7.4%4.9%
90 Day9.2%0.2%1.7%
1 Year-28.4%-30.1%-0.2%-13.6%3.0%0.7%
3 Year4.6%-1.2%43.8%17.4%44.8%35.4%
5 Year-5.3%-12.8%38.0%7.5%62.0%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

3 weeks ago | Simply Wall St

Are Insiders Buying PolyOne Corporation (NYSE:POL) Stock?

Valuation

Is PolyOne undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

PolyOne's share price is below the future cash flow value, but not at a moderate discount (< 20%).

PolyOne's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

PolyOne is good value based on earnings compared to the US Chemicals industry average.

PolyOne is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

PolyOne is good value based on expected growth next year.


Price Based on Value of Assets

PolyOne is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is PolyOne expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PolyOne's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

PolyOne's earnings are expected to grow significantly at over 20% yearly.

PolyOne's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

PolyOne's earnings growth is expected to exceed the United States of America market average.

PolyOne's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if PolyOne will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has PolyOne performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PolyOne's year on year earnings growth rate has been positive over the past 5 years.

PolyOne's 1-year earnings growth is negative, it can't be compared to the 5-year average.

PolyOne's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

Whilst PolyOne has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

PolyOne used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

PolyOne's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PolyOne's financial position?


Financial Position Analysis

PolyOne is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

PolyOne's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

PolyOne's level of debt (248.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (107.5% vs 248.1% today).

Debt is not well covered by operating cash flow (17.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

2.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PolyOne's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

PolyOne's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, PolyOne has been paying a dividend for less than 10 years.

Dividend payments have increased, but PolyOne only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Bob Patterson (46yo)

5.3yrs

Tenure

US$6,127,920

Compensation

Mr. Robert M. Patterson, also known as Bob, has been the Chief Executive Officer and President of PolyOne Corporation since May 15, 2014 and its Chairman since May 12, 2016. Mr. Patterson served as the Chi ...


CEO Compensation Analysis

Bob's remuneration is about average for companies of similar size in United States of America.

Bob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

55yo

Average Age

The average tenure for the PolyOne management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.1yrs

Average Tenure

60.5yo

Average Age

The tenure for the PolyOne board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$190,14031 Oct 18
J. Horn
EntityIndividual
Shares6,000
Max PriceUS$31.69
BuyUS$120,92026 Oct 18
Richard Fearon
EntityIndividual
Role
Lead Director
Lead Director
Shares4,000
Max PriceUS$30.23
BuyUS$32,63026 Oct 18
M. Midea
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Global Operations & Process Improvement
Shares1,050
Max PriceUS$31.08
BuyUS$306,42226 Oct 18
Robert Abernathy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$30.64

Ownership Breakdown


Management Team

  • Brad Richardson (61yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$1.88m
  • Bob Patterson (46yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$6.13m
  • Cathy Dodd

    Vice President of Marketing

    • Tenure: 5.6yrs
  • Kurt Schuering (55yo)

    Vice President of Global Key Account Management

    • Tenure: 7.7yrs
  • Michael Garratt (55yo)

    Senior VP & Chief Commercial Officer

    • Tenure: 6yrs
    • Compensation: US$1.17m
  • Lisa Kunkle (50yo)

    Senior VP

    • Tenure: 12.1yrs
    • Compensation: US$1.11m
  • Kyle Rose

    Vice President of Corporate Communications

    • Tenure: 4.8yrs
  • Mark Crist (60yo)

    Senior VP and President of Color

    • Tenure: 5.3yrs
    • Compensation: US$1.17m
  • M. Midea (55yo)

    Senior Vice President of Global Operations & Process Improvement

    • Tenure: 4.6yrs
  • Joe Di Salvo

    VP of Investor Relations & Treasurer

    • Tenure: 1.3yrs

Board Members

  • Bill Jellison (61yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$232.45k
  • Robert Abernathy (65yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$182.08k
  • Rick Fearon (63yo)

    Lead Director

    • Tenure: 4.3yrs
    • Compensation: US$255.00k
  • Sandy Lin (61yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$220.00k
  • Bill Wulfsohn (57yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$220.00k
  • Pat Verduin (60yo)

    Independent Director

    • Tenure: 0.5yrs
  • Greg Goff (62yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$230.00k
  • Kerry Preete (59yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$220.00k
  • Bob Patterson (46yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$6.13m
  • Kim Mink (59yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$220.00k

Company Information

PolyOne Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PolyOne Corporation
  • Ticker: POL
  • Exchange: NYSE
  • Founded: 1927
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$2.426b
  • Shares outstanding: 76.87m
  • Website: https://www.polyone.com

Number of Employees


Location

  • PolyOne Corporation
  • 33587 Walker Road
  • Avon Lake
  • Ohio
  • 44012
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POLNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1993
PY9DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1993

Biography

PolyOne Corporation provides specialized polymer materials, services, and solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in four segments: Color, Additives and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 23:38
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.