AdvanSix (ASIX) AI Stock Analysis

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AdvanSix

(NYSE:ASIX)

Select Model

Neutral 59 (OpenAI - 4o)

Rating:59Neutral

Price Target:

$16.00

▼(-18.07% Downside)

AdvanSix's overall stock score reflects significant financial challenges, including declining revenue and profitability, and liquidity concerns. Technical analysis indicates bearish momentum, though the valuation suggests potential undervaluation. The earnings call highlights mixed prospects with strategic initiatives amid operational challenges. The recent credit agreement amendment provides some financial flexibility.

Positive Factors

Strategic Investments

AdvanSix's focus on strategic investments indicates a commitment to long-term growth, enhancing its competitive position and operational efficiency.

Ammonium Sulfate Revenue

Record revenue in ammonium sulfate demonstrates strong market demand and effective sales strategies, contributing to revenue diversification and stability.

Financial Flexibility

The credit agreement amendment enhances financial flexibility, allowing AdvanSix to better manage debt and invest in growth opportunities.

Negative Factors

Declining Revenue

A decline in sales indicates challenges in maintaining market share and revenue growth, potentially affecting long-term financial performance.

Operational Disruptions

Operational disruptions at the Chesterfield plant highlight vulnerabilities in production stability, potentially affecting future profitability and efficiency.

Cash Flow Challenges

Severe declines in free cash flow indicate potential liquidity issues, limiting AdvanSix's ability to invest in growth and manage operational expenses.

AdvanSix (ASIX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$439.23M

Dividend Yield3.91%

Average Volume (3M)498.20K

Price to Earnings (P/E)8.5

Beta (1Y)1.11

Revenue Growth-5.05%

EPS Growth35.01%

CountryUS

Employees1,450

SectorBasic Materials

Sector Strength58

IndustryChemicals

Share Statistics

EPS (TTM)0.08

Shares Outstanding26,864,035

10 Day Avg. Volume584,195

30 Day Avg. Volume498,201

Financial Highlights & Ratios

PEG Ratio-0.99

Price to Book (P/B)0.99

Price to Sales (P/S)0.50

P/FCF Ratio452.00

Enterprise Value/Market Cap2.06

Enterprise Value/Revenue0.61

Enterprise Value/Gross Profit6.08

Enterprise Value/Ebitda6.84

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)3

Revenue Forecast (FY)$1.56B

AdvanSix Business Overview & Revenue Model

Company DescriptionAdvanSix (ASIX) is a leading global producer of nylon 6, a high-performance polymer used in various applications including automotive, consumer products, and industrial markets. The company operates primarily in the chemicals sector, focusing on the production of nylon resins, ammonium sulfate fertilizers, and other specialty chemicals. AdvanSix is committed to sustainability and innovation, leveraging advanced technologies to enhance its product offerings and operational efficiency.

How the Company Makes MoneyAdvanSix generates revenue primarily through the sale of its nylon 6 products and related chemical offerings. The company has a diverse customer base that includes industries such as automotive, where nylon is used for components that require durability and heat resistance. Additionally, AdvanSix produces ammonium sulfate, which serves as a fertilizer in the agricultural sector, contributing to its revenue streams. The company's business model relies on both direct sales and long-term contracts with major clients, ensuring stable cash flow. Strategic partnerships with suppliers and distributors also enhance its market reach and operational capabilities, while the focus on innovation and sustainability attracts new clients and retains existing ones, thus supporting continuous revenue growth.

AdvanSix Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where AdvanSix is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsAdvanSix's U.S. revenue shows volatility but recent quarters indicate a rebound, likely driven by strong performance in plant nutrients. International revenue remains weak, reflecting broader market challenges. The earnings call highlights a strategic pivot towards sustainable growth, leveraging carbon capture tax credits and strong domestic fertilizer sales. However, challenges persist with decreased sales in nylon and higher raw material costs impacting overall performance. Investors should watch for how these strategic shifts and market conditions affect future revenue stability.

Data provided by:

The Fly

AdvanSix Earnings Call Summary

Earnings Call Date:Nov 07, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Feb 13, 2026

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook. While there were notable achievements in ammonium sulfate revenue, successful plant turnarounds, and strategic investments, there were also significant challenges such as demand softness in key segments, operational disruptions, and increased raw material costs. The company is focused on navigating these challenges through disciplined cash management and strategic growth initiatives.

Q3-2025 Updates

Positive Updates

Record Ammonium Sulfate Revenue

Third quarter revenue for ammonium sulfate was the highest ever, with granular volume up 20% year-over-year, driven by strong fall fill program and favorable market conditions.

Successful Plant Turnaround

The fourth quarter planned plant turnaround was completed successfully at the low end of the target range, enhancing operational efficiency.

Strong Board of Directors Additions

Dana O'Brien and Daryl Roberts joined the Board of Directors, bringing deep industry and professional backgrounds to strengthen corporate governance.

Sustained Growth Program Progress

The program is favorably tracking roughly 15% below its capital budget, with continued progress on strategic investments for growth.

ERP System Upgrade

The planned investment to upgrade the enterprise resource planning system was successfully implemented, streamlining key processes and enhancing management tools.

Negative Updates

Nylon Solutions and Chemical Intermediates Demand Softness

Protracted downturn in nylon solutions and demand softness in chemical intermediates resulted in moderated production rates and a focus on managing inventory levels.

Electrical Outage and Fire Impact

An electrical outage at the Chesterfield nylon plant and a subsequent fire impacted operations, with an expected negative impact on 4Q EBITDA by $7 million to $9 million.

Sales and Earnings Decline

Third-quarter sales decreased approximately 6% year-over-year, with adjusted EBITDA down $28 million from last year, primarily due to reduced acetone price spreads and higher utility costs.

Increased Raw Material Costs

Higher raw material input costs, particularly in sulfur and natural gas, are expected to continue impacting financial performance.

Company Guidance

During the third quarter of 2025, AdvanSix faced challenging industry dynamics but maintained a strategic focus on optimizing operational and commercial performance. Utilization across their integrated value chain decreased by approximately 4 percentage points sequentially, while a site incident at their Chesterfield nylon plant is expected to impact fourth-quarter EBITDA by $7 million to $9 million due to unabsorbed fixed costs. Despite the downturn in nylon solutions and demand softness in chemical intermediates, the company reported third-quarter sales of $374 million, a 6% decline from the previous year, and adjusted EBITDA of $25 million, down $28 million year-over-year with a margin of 6.6%. AdvanSix continues to prioritize cash management and plans to reduce 2025 capital expenditures to $120 million to $125 million. The company anticipates capital expenditures of $125 million to $135 million in 2026 and expects a cash tax rate below 10% over the next few years, supported by 45Q carbon tax credits and recent tax legislation.

AdvanSix Financial Statement Overview

Summary

AdvanSix is experiencing financial difficulties, with declining revenue and profitability impacting its income statement. The balance sheet is stable but shows increased leverage, and cash flow analysis indicates potential liquidity issues. The company needs to address operational inefficiencies and improve cash generation to enhance its financial health.

Income Statement

Neutral

AdvanSix's income statement shows a concerning trend with declining revenue and profitability. The TTM data reveals a negative revenue growth rate of -1.57%, and the gross profit margin has significantly decreased from previous years. The net profit margin is slightly positive at 3.52%, but the EBIT margin is negative, indicating operational challenges. The EBITDA margin remains positive, suggesting some operational efficiency, but overall, the income statement reflects a challenging financial environment.

Balance Sheet

Positive

The balance sheet indicates moderate financial stability. The debt-to-equity ratio is 0.50, which is manageable and shows a slight increase from previous years. Return on equity (ROE) has decreased to 6.53% in the TTM period, reflecting reduced profitability. The equity ratio is stable, suggesting a balanced capital structure. Overall, the balance sheet is relatively stable but shows signs of increased leverage.

Cash Flow

Neutral

Cash flow analysis reveals a decline in free cash flow growth, with a significant drop of -64.2% in the TTM period. The operating cash flow to net income ratio is 0.37, indicating that operating cash flows are covering net income adequately. However, the free cash flow to net income ratio is low at 0.22, suggesting limited cash available after capital expenditures. The cash flow statement highlights potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.52B	1.53B	1.95B	1.68B	1.16B
Gross Profit	148.87M	152.94M	165.09M	314.48M	274.12M	133.75M
EBITDA	132.26M	133.06M	149.72M	297.93M	255.48M	123.66M
Net Income	52.43M	44.15M	54.62M	171.89M	139.79M	46.08M
Balance Sheet
Total Assets	1.69B	1.59B	1.50B	1.50B	1.31B	1.26B
Cash, Cash Equivalents and Short-Term Investments	23.70M	19.56M	29.77M	30.98M	15.10M	10.61M
Total Debt	406.62M	348.89M	266.01M	230.04M	271.71M	389.88M
Total Liabilities	870.12M	820.27M	756.78M	757.15M	710.81M	819.28M
Stockholders Equity	818.23M	774.65M	739.24M	738.18M	601.19M	444.12M
Cash Flow
Free Cash Flow	108.00K	1.69M	10.17M	184.15M	162.04M	28.93M
Operating Cash Flow	123.31M	135.41M	117.55M	273.60M	218.85M	111.85M
Investing Cash Flow	-132.48M	-142.90M	-110.90M	-189.27M	-67.56M	-84.10M
Financing Cash Flow	15.57M	-2.71M	-7.87M	-68.44M	-146.79M	-24.19M

AdvanSix Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price19.53

Price Trends

50DMA

17.13

Negative

100DMA

18.47

Negative

200DMA

20.44

Negative

Market Momentum

MACD

-0.09

Negative

RSI

52.43

Neutral

STOCH

51.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASIX, the sentiment is Neutral. The current price of 19.53 is above the 20-day moving average (MA) of 15.67, above the 50-day MA of 17.13, and below the 200-day MA of 20.44, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASIX.

AdvanSix Risk Analysis

AdvanSix disclosed 30 risk factors in its most recent earnings report. AdvanSix reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

AdvanSix Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	59 Neutral	$439.23M	8.50	6.62%	3.91%	-5.05%	35.01%
LXU	58 Neutral	$626.64M	-828.30	-0.13%	―	12.49%	95.48%
TROX	57 Neutral	$700.80M	-2.18	-18.65%	7.85%	-7.81%	-334.15%
ASPI	50 Neutral	$638.44M	-4.06	-187.23%	―	147.78%	-137.42%
RYAM	49 Neutral	$383.94M	-0.92	-78.11%	―	-9.75%	-386.63%
ORGN	41 Neutral	$49.79M	-0.63	-21.13%	―	-28.47%	16.83%

* Basic Materials Sector Average

Performance Comparison

ASIX

AdvanSix

16.42

-10.73

-39.52%

LXU

Lsb Industries

8.78

1.13

14.77%

TROX

TRONOX

4.46

-5.13

-53.49%

RYAM

Rayonier Advanced Materials

5.71

-1.76

-23.56%

ORGN

Origin Materials

0.29

-0.70

-70.71%

ASPI

ASP Isotopes, Inc.

5.79

0.90

18.40%

AdvanSix Corporate Events

DividendsFinancial Disclosures

AdvanSix Declares Cash Dividend Amid Sales Decline

Neutral

Nov 7, 2025

On November 7, 2025, AdvanSix announced a cash dividend of $0.16 per share, payable on December 2, 2025. The company reported its third-quarter 2025 financial results, showing a 6% decrease in sales to $374 million compared to the previous year. Despite challenging market conditions, particularly in Nylon Solutions and Chemical Intermediates, AdvanSix focused on optimizing operational performance and managing inventory levels. The company anticipates continued strength in Plant Nutrients and is strategically moderating production rates to enhance free cash flow, while also preparing for future financial benefits from tax credits.

Private Placements and FinancingBusiness Operations and Strategy

AdvanSix Amends Credit Agreement for Financial Flexibility

Positive

Oct 23, 2025

On October 23, 2025, AdvanSix Inc. amended its existing credit agreement initially dated October 27, 2021. The amendment extends the maturity date of $452 million in revolving credit commitments to October 27, 2027, while $48 million will mature by October 27, 2026. This strategic financial adjustment aims to enhance AdvanSix’s financial flexibility and stability, potentially impacting its operational capabilities and market positioning.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025