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AdvanSix Inc. (ASIX)
NYSE:ASIX
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AdvanSix
(NYSE:ASIX)
Rating:72Outperform
Price Target:
$26.00
▲(4.80%Upside)
AdvanSix (ASIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$659.59M
Dividend Yield2.58%
Average Volume (3M)192.28K
Price to Earnings (P/E)7.9
Beta (1Y)0.97
Revenue Growth6.03%
EPS Growth5079.05%
CountryUS
Employees1,450
SectorBasic Materials
Sector Strength68
IndustryChemicals
Share Statistics
EPS (TTM)0.93
Shares Outstanding26,812,687
10 Day Avg. Volume127,967
30 Day Avg. Volume192,277
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.44
Price to Sales (P/S)0.00
P/FCF Ratio5.77
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit6.21
Enterprise Value/Ebitda2.52
Forecast
1Y Price Target
$32.00Price Target Upside28.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
AdvanSix Business Overview & Revenue Model
Company DescriptionAdvanSix 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.
How the Company Makes MoneyAdvanSix generates revenue primarily through the production and sale of its three main product lines: nylon 6 materials, chemical intermediates, and ammonium sulfate fertilizers. The company's nylon resins and caprolactam are sold to customers in the automotive, electronics, and consumer goods industries, where they are used in the manufacture of high-performance products. AdvanSix's chemical intermediates are utilized in various industrial applications, including solvents and coatings. Additionally, the company derives income from its ammonium sulfate fertilizers, which are sold to agricultural customers to enhance crop yield. The company's financial performance is also influenced by its operational efficiency, strategic partnerships, and the global demand for its products, particularly in regions with robust industrial and agricultural sectors.
AdvanSix Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q1-2025)
| % Change Since: 17.25%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
AdvanSix reported strong year-over-year growth in sales and earnings, driven by improved operational performance and strategic settlements. However, the company faces challenges from rising input costs and mixed performance in certain segments like nylon and acetone. Despite a negative free cash flow for the quarter, the overall outlook remains positive with continued investment in growth and strategic initiatives.Q1-2025 Updates
Positive Updates
Significant Year-Over-Year Performance Improvement
AdvanSix delivered significantly improved year-over-year performance with a 12% increase in sales to $378 million, driven by improved operational performance and a 4% increase in market pricing.
Strong Plant Nutrients Segment
The plant nutrients segment showed continued strength with ammonium sulfate prices up 34% year-over-year and 25% sequentially, driven by favorable North American supply and demand conditions.
Successful Insurance Settlement
AdvanSix concluded a multi-year effort to recover losses associated with the 2019 PES cumene supplier shutdown, resulting in a $26 million settlement, contributing to a total of $39 million in aggregated insurance proceeds.
Adjusted EBITDA and Earnings Growth
Adjusted EBITDA was $52 million with a margin of 13.7%. Adjusted earnings per share increased by $1.49 to $0.93 versus the prior year.
Positive Tax and Cash Flow Developments
The effective tax rate decreased to 19.3% from 25.7%, largely due to additional tax credits. Cash flow from operations increased by $48 million, resulting in a positive outlook for generating positive free cash flow for the year.
Negative Updates
Rising Costs and Margin Pressure
Pricing over raw materials was unfavorable by $5 million, with significant input cost increases in natural gas and sulfur affecting fertilizer margins.
Mixed Nylon Segment Performance
The nylon segment faced a slow start to the year with global oversupply and dynamic macro factors. However, domestic demand remained stable.
Challenges in Acetone Margins
Acetone margins contracted due to higher propylene costs, although demand is expected to improve following industry turnarounds.
Negative Free Cash Flow
Free cash flow was negative $23 million in the quarter, although it was still an improvement of $49 million compared to the prior year.
Company Guidance
In the first quarter of 2025, AdvanSix reported a 12% year-over-year increase in sales, reaching $378 million, driven by improved operational performance and a 7% rise in sales volume, particularly in granular ammonium sulfate. The company achieved a 4% increase in market pricing, supported by strong demand in plant nutrients, while raw material pass-through pricing rose by 1%. Adjusted EBITDA was $52 million with a margin of 13.7%, and adjusted earnings per share increased significantly to $0.93. The company received a $26 million final insurance settlement related to the 2019 PES cumene supplier shutdown, contributing to a cash flow from operations of $11 million, despite a negative free cash flow of $23 million. Capital expenditures for the quarter were $34 million, with a full-year 2025 forecast tightened to $145-$155 million. AdvanSix continues to invest in growth initiatives, maintaining a focus on operational excellence and a diverse product portfolio, while strategically managing cash flow and capital allocation to navigate the dynamic economic environment.AdvanSix Financial Statement Overview
Summary
AdvanSix shows improving profitability with stable balance sheet indicators. The income statement reflects enhanced profit margins despite fluctuating revenues, while the balance sheet has a robust equity position and manageable debt levels. Cash flows are positive, indicating strong operational cash generation. However, growth challenges remain due to inconsistent revenue.Income Statement
AdvanSix shows a stable gross profit margin of 33.9% for TTM, with a noticeable improvement from the previous annual report. The net profit margin also rose to 5.4% in TTM compared to 2.9% in the last annual report, indicating enhanced profitability. However, revenue growth has been inconsistent, with a decline from 2022 to 2023 but a slight increase in TTM. EBIT and EBITDA margins are improving, suggesting better operational efficiency. Overall, while there are growth challenges, profitability is on an upward trend.68
Positive
Balance Sheet
AdvanSix's balance sheet demonstrates a strong equity base with an equity ratio of 48.9% in TTM, improving from previous periods. The debt-to-equity ratio is relatively stable at 0.45, indicating manageable leverage. Return on equity (ROE) for TTM is 10.7%, which shows effective use of equity to generate profits. Despite minor fluctuations in total assets and liabilities, the company's financial position remains stable.72
Positive
Cash Flow
The company's cash flow statement reveals positive developments, with TTM operating cash flow significantly higher than previous periods, leading to improved free cash flow. Free cash flow growth rate is strong, mainly due to a substantial increase from the previous year. The operating cash flow to net income ratio is 2.16, showing effective cash generation relative to profits. While investment in capital expenditures remains high, the overall cash flow position is stable.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.56B | 1.52B | 1.53B | 1.95B | 1.68B | 1.16B | Gross Profit |
| 203.44M | 152.94M | 165.09M | 314.48M | 274.12M | 133.75M | EBIT |
| 109.60M | 58.91M | 69.55M | 228.57M | 190.14M | 62.83M | EBITDA |
| 134.68M | 133.06M | 149.72M | 297.93M | 255.48M | 123.66M | Net Income Common Stockholders |
| 84.89M | 44.15M | 54.62M | 171.89M | 139.79M | 46.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.34M | 19.56M | 29.77M | 30.98M | 15.10M | 10.61M | Total Assets |
| 1.63B | 1.59B | 1.50B | 1.50B | 1.31B | 1.26B | Total Debt |
| 360.53M | 348.89M | 266.01M | 230.04M | 271.71M | 389.88M | Net Debt |
| 352.19M | 329.33M | 236.25M | 199.06M | 256.61M | 379.28M | Total Liabilities |
| 831.61M | 820.27M | 756.78M | 757.15M | 710.81M | 819.28M | Stockholders Equity |
| 794.37M | 774.65M | 739.24M | 738.18M | 601.19M | 444.12M |
| Cash Flow | Free Cash Flow | ||||
| 50.66M | 1.69M | 10.17M | 184.15M | 162.04M | 28.93M | Operating Cash Flow |
| 183.06M | 135.41M | 117.55M | 273.60M | 218.85M | 111.85M | Investing Cash Flow |
| -142.89M | -142.90M | -110.90M | -189.27M | -67.56M | -84.10M | Financing Cash Flow |
| -52.46M | -2.71M | -7.87M | -68.44M | -146.79M | -24.19M |
AdvanSix Technical Analysis
Positive
24.81
Price Trends
22.33
Positive
24.77
Negative
27.00
Negative
Market Momentum
0.46
Negative
59.67
Neutral
75.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASIX, the sentiment is Positive. The current price of 24.81 is above the 20-day moving average (MA) of 23.93, above the 50-day MA of 22.33, and below the 200-day MA of 27.00, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 75.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $659.59M | 7.88 | 11.26% | 2.58% | 6.03% | 5079.05% | |
64 Neutral | $463.19M | 3.98 | 11.76% | 1.95% | 7.82% | 19465.71% | |
60 Neutral | $266.43M | ― | -10.12% | ― | 2.20% | 34.71% | |
51 Neutral | $969.79M | ― | -8.44% | 8.32% | 4.15% | 57.25% | |
51 Neutral | $2.04B | -1.15 | -21.24% | 3.95% | 2.91% | -30.44% | |
49 Neutral | $557.77M | ― | -5.28% | ― | -4.23% | -259.01% | |
46 Neutral | $71.16M | ― | -26.63% | ― | -11.91% | -26768.00% |
* Basic Materials Sector Average
Performance Comparison
ASIX
AdvanSix
24.48
1.08
4.62%
LXU
Lsb Industries
7.93
-0.50
-5.93%
VHI
Valhi
15.78
-3.05
-16.20%
TROX
TRONOX
5.79
-13.00
-69.19%
RYAM
Rayonier Advanced Materials
4.05
-1.54
-27.55%
ORGN
Origin Materials
0.44
-0.52
-54.17%
AdvanSix Corporate Events
Executive/Board ChangesShareholder Meetings
AdvanSix Announces Upcoming Board Member Resignations
Neutral
Apr 16, 2025
On April 16, 2025, AdvanSix Inc. announced the upcoming resignations of Board members Farha Aslam and Darrell K. Hughes, effective at the Annual Meeting on June 18, 2025, due to other commitments. Their departures are not due to disagreements with the company. The Board plans to nominate Daniel F. Sansone for re-election, waiving the director age limit, and will reduce the Board size from nine to seven members.
Executive/Board Changes
AdvanSix Announces Leadership Changes Effective March 2025
Neutral
Mar 17, 2025
AdvanSix Inc. announced leadership changes effective March 17, 2025, with Christopher Gramm appointed as Vice President of Financial Planning and Analysis, stepping down from his role as Vice President, Controller. Rachael E. Ryan will succeed him as Vice President, Controller and Chief Accounting Officer, bringing extensive experience from her previous roles at Verizon and Honeywell.
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.