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Fundamental analysis: Avient Corporation (AVNT)

Awarener score: 6.8

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 (Poor) and growth (Average), and the company's inclination to return cash to the stockholders (Very good).

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: 4.5

  • Business has been growing at a low pace. It's been encouraging in relation to peer companies.
  • Avient Corporation business varies, ups and downs are rather normal. Risk is sufficient. It looks mediocre against rivals.

Margins score: 6.2

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

Growth score: 6.9

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

Miscellaneous score: 6.0

  • AVNT had to pay sparse income taxes in relation to profits made in the past years. It's been somewhat better than 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: 8.8

  • Avient Corporation usually gets excellent returns on the resources it controls. It proves similar 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 great when measured against competitors.
  • In the past, got excellent 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 great when measured against comparable enterprises.

Usage of Funds score: 6.0

  • AVNT usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands great when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is weak when measured against industry peers.
  • In the past twelve months it paid some dividends, considering the current stock price. It came well ranked against competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved close to average when compared to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks somewhat better than comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks encouraging in relation to competitors.

Balance Sheet score: 4.8

  • Avient Corporation intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be a disappointment compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains worse than most rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is slightly worse than similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks great when measured against 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 higher than three months from the purchase to charging customers. It happens to be better than most peers.
  • On average pays suppliers two months after the purchase. It ranks similar to industry peers.
  • The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's impressive in relation to similar companies.
  • Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks substantially worse when measured against comparable enterprises.
  • Revenues are reasonable 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 a slight improvement compared to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 5.8

  • Avient Corporation looks very expensive in relation to profits and financial position. It happens to be below 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 a disappointment compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates reasonably 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, the current valuation might be fair. It's still similar to industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks worse than most similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks almost average when measured against 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 in good shape 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 slightly better than peer firms.
  • In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.1


AVNT logos

Company at a glance: Avient Corporation (AVNT)

Sector, industry: Basic Materials, Specialty Chemicals

Market Cap: 3.60 billions

Revenues TTM: 4.62 billions

Avient Corporation provides specialized formulator, services, and sustainable material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates through three segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution. The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks. This segment products are used in various markets include medical, pharmaceutical devices, food packaging, personal care, cosmetics, transportation, building products, recreational, athletic apparel, construction, filtration, outdoor furniture, healthcare, wire, and cable. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology to thermoset and thermoplastic composites. The Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders. The company sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.

Awarener score: 6.8

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 (Poor) and growth (Average), and the company's inclination to return cash to the stockholders (Very good).