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.

Rewards

PE ratio (17.1x) is below the US market (18.6x)

Earnings grew by 13.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Proven track record second-rate dividend payer.


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

Stable Share Price: POL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

POL

0.5%

US Chemicals

0.6%

US Market


1 Year Return

8.4%

POL

3.5%

US Chemicals

20.8%

US Market

Return vs Industry: POL exceeded the US Chemicals industry which returned 3.5% over the past year.

Return vs Market: POL underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

POLIndustryMarket
7 Day-0.4%0.5%0.6%
30 Day-5.3%-1.6%2.5%
90 Day-11.0%1.5%4.9%
1 Year11.1%8.4%19.2%3.5%23.5%20.8%
3 Year-3.0%-8.6%34.8%9.2%46.5%37.0%
5 Year-8.2%-15.8%45.6%14.3%64.6%46.5%

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

Valuation

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

17.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: POL ($31.13) is trading above our estimate of fair value ($25.34)

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


Price To Earnings Ratio

PE vs Industry: POL is good value based on its PE Ratio (17.1x) compared to the Chemicals industry average (20.4x).

PE vs Market: POL is good value based on its PE Ratio (17.1x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: POL is poor value based on its PEG Ratio (79.3x)


Price to Book Ratio

PB vs Industry: POL is overvalued based on its PB Ratio (4x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is PolyOne forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POL's forecast earnings growth (0.2% per year) is below the savings rate (1.7%).

Earnings vs Market: POL's earnings (0.2% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: POL's revenue is expected to decline over the next 3 years (-0.03% per year).

High Growth Revenue: POL's revenue is forecast to decline over the next 3 years (-0.03% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has PolyOne performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POL has high quality earnings.

Growing Profit Margin: POL's current net profit margins (4%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: POL's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: POL's earnings growth over the past year (13.5%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: POL earnings growth over the past year (13.5%) exceeded the Chemicals industry -17%.


Return on Equity

High ROE: Whilst POL's Return on Equity (23.84%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PolyOne's financial position?


Financial Position Analysis

Short Term Liabilities: POL's short term assets ($1.2B) exceed its short term liabilities ($625.5M).

Long Term Liabilities: POL's short term assets ($1.2B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: POL's debt to equity ratio (241.7%) is considered high.

Reducing Debt: POL's debt to equity ratio has increased from 112.9% to 241.7% over the past 5 years.

Debt Coverage: POL's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: POL's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: POL's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

2.60%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: POL's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: POL's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, POL has been paying a dividend for less than 10 years.

Growing Dividend: POL's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.9%), POL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: POL's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Bob Patterson (46yo)

5.6yrs

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

Compensation vs Market: Bob's total compensation ($USD6.13M) is above average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

5.7yrs

Average Tenure

55yo

Average Age

Experienced Management: POL's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: POL's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Brad Richardson (61yo)

    Executive VP & CFO

    • Tenure: 6.1yrs
    • Compensation: US$1.88m
  • Bob Patterson (46yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: US$6.13m
  • Cathy Dodd

    Vice President of Marketing

    • Tenure: 5.8yrs
  • Kurt Schuering (55yo)

    Vice President of Global Key Account Management

    • Tenure: 7.9yrs
  • Michael Garratt (55yo)

    Senior VP & Chief Commercial Officer

    • Tenure: 6.3yrs
    • Compensation: US$1.17m
  • Lisa Kunkle (50yo)

    Senior VP

    • Tenure: 12.3yrs
    • Compensation: US$1.11m
  • Kyle Rose

    Vice President of Corporate Communications

    • Tenure: 5yrs
  • Mark Crist (60yo)

    Senior VP and President of Color

    • Tenure: 5.5yrs
    • Compensation: US$1.17m
  • M. Midea (55yo)

    Senior Vice President of Global Operations & Process Improvement

    • Tenure: 4.8yrs
  • Joe Di Salvo

    VP of Investor Relations & Treasurer

    • Tenure: 1.5yrs

Board Members

  • Bill Jellison (61yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$232.45k
  • Robert Abernathy (65yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$182.08k
  • Rick Fearon (63yo)

    Lead Director

    • Tenure: 4.6yrs
    • Compensation: US$255.00k
  • Sandy Lin (61yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$220.00k
  • Bill Wulfsohn (57yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$220.00k
  • Pat Verduin (60yo)

    Independent Director

    • Tenure: 0.8yrs
  • Greg Goff (62yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$230.00k
  • Kerry Preete (59yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$220.00k
  • Bob Patterson (46yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: US$6.13m
  • Kim Mink (59yo)

    Independent Director

    • Tenure: 2.8yrs
    • 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$2.394b
  • Shares outstanding: 76.92m
  • 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 Analysis2019/12/14 00:00
End of Day Share Price2019/12/13 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.