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Fundamental analysis: AdvanSix Inc. (ASIX)

Awarener score: 7.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Lacking) and growth (Average), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

  • Business has been growing at a low pace. It's been almost average when measured against peer companies.
  • AdvanSix Inc. business shows some variation, there's some risk. It looks somewhat better than rivals.

Margins score: 6.0

  • ASIX profit margins -on goods and services sold- are usually very poor. They stand worse than most rival companies.
  • Business profit on sales tends to be good. It's substantially worse when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain in a very weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still worse than most similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain below average when measured against rivals.
  • Total net profit tends to be good when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 9.6

  • AdvanSix Inc. profit -on goods and services sold- has been growing at a very good pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at an extremely fast step, which has been well ranked against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares almost average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be a slight improvement compared to similar stocks.
  • In past years, profits -before income taxes- grew at an extremely fast speed. It was somewhat better than rivals.
  • In the previous years, growth trend on total net profit has been extremely high, and similar to peer companies.
  • Earnings per share have grown at an extremely fast rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 8.0

  • ASIX managed to pay little to no income taxes on profits made in the past years. It's been mediocre against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

  • AdvanSix Inc. usually gets excellent returns on the resources it controls. It proves encouraging in relation to peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks similar to competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 7.5

  • ASIX usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands encouraging in relation to rival firms.
  • The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is great when measured against industry peers.
  • In the past twelve months it paid somewhat low dividends, considering the current stock price. It came worse than most competitors.
  • Has recently started or restarted paying dividends to stockholders. Business prospects are most likely good. The company has behaved impressive in relation to similar firms.
  • Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks top-notch against comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands in good shape compared to rivals.
  • The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks similar to competitors.

Balance Sheet score: 6.1

  • AdvanSix Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
  • The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be a disappointment compared to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat worse than rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is bottom tier against similar enterprises.
  • Usually, sales are on a month credit. It still ranks more than average in relation to peers.
  • Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as in good shape compared to competitors.
  • On average, it takes less than three months from the purchase to charging customers. It happens to be somewhat better than peers.
  • On average pays suppliers longer than two months after the purchase. It ranks below average when measured against industry peers.
  • The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's impressive in relation to similar companies.
  • Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands better than most rival firms.
  • Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
  • Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still better than most peer companies.

Valuation score: 7.3

  • AdvanSix Inc. looks cheap in relation to profits and financial position. It happens to be almost average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands slightly worse than similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still below average when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up in a very weak position compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks encouraging in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat worse than peer firms.
  • In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in a weak position compared to peer companies.

Total score: 7.2


ASIX logos

Company at a glance: AdvanSix Inc. (ASIX)

Sector, industry: Basic Materials, Chemicals

Market Cap: 1.13 billions

Revenues TTM: 1.97 billions

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. 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. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.

Awarener score: 7.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Lacking) and growth (Average), and the company's inclination to return cash to the stockholders (Average).