Avient (AVNT) AI Stock Analysis

• Market Cap: $2.72B
• Dividend Yield: 3.64%
• Average Volume (3M): 566.53K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.35
• Revenue Growth: 1.03%
• EPS Growth: -24.57%
• Country: US
• Employees: 9,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.70
• Shares Outstanding: 91,563,630
• 10 Day Avg. Volume: 735,739
• 30 Day Avg. Volume: 566,532
• PEG Ratio: 0.18
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 27.65
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 13.25
• 1Y Price Target: $41.25
• Price Target Upside: 39.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.81
• Revenue Forecast (FY): $3.25B

• Rating: 63 Neutral
• Price Target: $33.00 ▲(11.37% Upside)

Avient's overall stock score reflects a stable financial position with strong cash flow generation, but challenges in revenue growth and operational efficiency. The technical analysis indicates a bearish trend, while the valuation suggests a premium price with a decent dividend yield. The earnings call highlighted both growth and market challenges, with proactive measures in place.

Positive Factors

Cash Flow Generation

Strong cash flow growth indicates efficient operations and provides the company with the flexibility to invest in growth opportunities and manage debt.

Debt Reduction

Reducing debt enhances financial stability and lowers interest expenses, improving long-term financial health and shareholder value.

Productivity Initiatives

Productivity improvements enhance operational efficiency, leading to better margins and profitability, supporting sustainable growth.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests challenges in market demand and competitiveness, potentially impacting long-term growth prospects.

Market Weakness

Weak market demand in key sectors can hinder revenue growth and profitability, requiring strategic adjustments to adapt to market conditions.

Operational Efficiency Pressure

Decreasing margins indicate pressure on operational efficiency, which can affect profitability and require cost management strategies.

Avient Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Avient generates revenue through the sale of its specialty polymer products and services across various industries. The company has a diverse revenue model that includes direct sales to manufacturers and distributors, along with custom solutions tailored to specific customer needs. Key revenue streams include the sale of engineered materials, color and additive systems, and specialty inks. Avient also benefits from strategic partnerships with other companies in its supply chain, which enhance its product offerings and market reach. Additionally, the company's focus on sustainable solutions and innovation contributes to its ability to capture new market opportunities and maintain competitive pricing, further driving its earnings.

Avient Financial Statement Overview

Summary

Avient demonstrates a stable financial position with strong cash flow generation, despite challenges in revenue growth and operational efficiency. The decline in margins and revenue growth rate suggests the need for strategic adjustments to enhance profitability and growth.

Income Statement

Avient's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 26.7%, which is concerning. However, the company maintains a stable gross profit margin of 32.2% and a net profit margin of 3.5%. The EBIT and EBITDA margins have decreased compared to previous periods, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.83 in the TTM, indicating a reduction in leverage. Return on equity is relatively low at 5.1%, suggesting limited profitability on shareholder investments. The equity ratio stands at 39.4%, showing a stable capital structure.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 86.8% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 2.26, suggesting efficient cash conversion. However, the free cash flow to net income ratio of 0.59 indicates room for improvement in translating earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.25B	3.24B	3.14B	3.40B	3.32B	3.24B
Gross Profit	1.05B	1.06B	902.70M	882.70M	943.80M	784.30M
EBITDA	344.70M	510.10M	391.40M	346.70M	424.60M	328.60M
Net Income	113.30M	169.50M	75.70M	703.10M	230.80M	131.60M
Balance Sheet
Total Assets	6.06B	5.81B	5.97B	6.08B	5.00B	4.87B
Cash, Cash Equivalents and Short-Term Investments	445.60M	544.50M	545.80M	641.10M	601.20M	649.50M
Total Debt	1.97B	2.15B	2.14B	2.24B	1.92B	1.95B
Total Liabilities	3.67B	3.48B	3.63B	3.73B	3.21B	3.16B
Stockholders Equity	2.37B	2.31B	2.32B	2.33B	1.77B	1.70B
Cash Flow
Free Cash Flow	151.10M	134.90M	82.20M	292.90M	133.20M	157.90M
Operating Cash Flow	256.40M	256.80M	201.60M	398.40M	233.80M	221.60M
Investing Cash Flow	-105.30M	-120.60M	-94.20M	-504.00M	-150.20M	-1.43B
Financing Cash Flow	-208.80M	-120.90M	-201.70M	166.40M	-114.60M	982.00M

Avient Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNT, the sentiment is Negative. The current price of 29.63 is below the 20-day moving average (MA) of 31.54, below the 50-day MA of 33.24, and below the 200-day MA of 35.39, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 29.32 is Positive, neither overbought nor oversold. The STOCH value of 15.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVNT.

Avient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRM	67 Neutral	$3.57B	57.32	7.39%	―	19.12%	―
CBT	66 Neutral	$3.27B	10.21	22.05%	2.88%	-7.04%	-11.00%
AVNT	63 Neutral	$2.72B	24.09	4.79%	3.64%	1.03%	-24.57%
FUL	62 Neutral	$3.13B	27.80	6.05%	1.60%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	58 Neutral	$2.68B	32.20	17.49%	0.46%	11.86%	1.99%
OLN	48 Neutral	$2.21B	41.83	2.67%	4.13%	4.68%	-62.80%

Avient Corporate Events

Avient Corporation Reports Strong Q3 2025 Performance

Avient Corporation is a global leader in materials solutions, specializing in colorants, advanced composites, and engineered materials, with a focus on sustainability and innovation. In its third quarter of 2025, Avient reported sales of $807 million, slightly below the previous year, but achieved an 8% growth in adjusted EPS, reaching $0.70, driven by improved EBITDA margins and reduced interest and tax expenses. The company maintained its full-year adjusted EPS guidance, anticipating a 4% to 8% growth year-over-year, and reported strong cash flow that facilitated $50 million in debt repayment during the quarter. Avient’s strategic focus on productivity and cost control is expected to continue driving margin expansion and earnings growth, with a forecasted total debt reduction of $150 million by year-end. Despite challenges in key markets, Avient remains committed to customer focus and strategic investments, positioning itself for continued growth amidst an uncertain macroeconomic environment.

Avient Corporation Navigates Mixed Earnings Landscape

Avient Corporation’s recent earnings call painted a mixed picture of the company’s current standing. While there were significant achievements in adjusted EPS growth and productivity gains, challenges remain in several key markets. The company is navigating these hurdles with proactive measures aimed at managing costs and enhancing productivity amid an uncertain macroeconomic environment.