Avient (AVNT) AI Stock Analysis

• Market Cap: $2.87B
• Dividend Yield: 3.38%
• Average Volume (3M): 528.60K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 1.33
• Revenue Growth: 3.28%
• EPS Growth: 1.69%
• Country: US
• Employees: 9,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.80
• Shares Outstanding: 91,540,565
• 10 Day Avg. Volume: 493,239
• 30 Day Avg. Volume: 528,595
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 11.08
• 1Y Price Target: $42.50
• Price Target Upside: 33.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 70 Neutral
• Price Target: $39.00 ▲(22.14% Upside)

Avient's overall stock score is driven by stable financial performance and positive earnings call insights, particularly in debt reduction and sector-specific demand. Technical indicators suggest potential bearish trends, and valuation metrics indicate possible overvaluation, which are areas of concern.

Positive Factors

Debt Reduction

Reducing debt enhances financial stability and flexibility, allowing Avient to allocate resources to growth initiatives and withstand economic fluctuations.

Innovation and Patents

Increased patent filings indicate a strong commitment to innovation, potentially leading to new products and competitive advantages in the market.

Strong Sector Demand

Robust demand in defense and healthcare sectors supports revenue stability and growth, offsetting weaknesses in other markets.

Negative Factors

Weak Consumer Markets

Declining consumer market sales could hinder overall revenue growth, necessitating strategic adjustments to mitigate impact.

Raw Material Cost Pressures

Rising raw material costs can compress margins and affect profitability, requiring effective cost management strategies.

EMEA Sales Decline

A decline in EMEA sales, particularly in packaging, may indicate regional challenges that could affect overall performance if not addressed.

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's financials reflect stability with steady revenue and strong gross margins. The balance sheet is solid with manageable debt levels, while cash flow generation is improving. Challenges remain in profit margins, requiring focus on cost control and efficiency enhancements.

Income Statement

Avient shows stable revenue levels in recent periods with a slight TTM growth of 0.44% compared to the previous year. The gross profit margin is strong at 32.6% TTM. However, there's a noticeable decline in EBIT and EBITDA margins, indicating potential cost management issues. Net profit margin is relatively low at 3.65% TTM, reflecting challenges in translating revenue to profit.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.85, reflecting moderate leverage. The equity ratio is healthy at 38.7%. Avient's return on equity stands at 5.01% TTM, indicating moderate efficiency in generating profits from shareholders' equity. Overall, the balance sheet shows stability with a focus on equity and manageable debt levels.

Cash Flow

Avient demonstrates a positive free cash flow growth rate of 11.05% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 2.15, showcasing robust operational efficiency. However, the free cash flow to net income ratio at 1.26 suggests a moderate conversion of profits to free cash flow.

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	1.06B	1.06B	902.70M	882.70M	1.10B	784.30M
EBITDA	408.70M	510.10M	391.40M	427.20M	472.90M	352.90M
Net Income	118.90M	169.50M	75.70M	703.10M	230.80M	131.60M
Balance Sheet
Total Assets	6.13B	5.81B	5.97B	6.08B	5.00B	4.87B
Cash, Cash Equivalents and Short-Term Investments	474.50M	544.50M	545.80M	641.10M	601.20M	649.50M
Total Debt	2.02B	2.15B	2.14B	2.24B	1.92B	1.95B
Total Liabilities	3.76B	3.48B	3.63B	3.73B	3.21B	3.17B
Stockholders Equity	2.37B	2.31B	2.32B	2.33B	1.77B	1.70B
Cash Flow
Free Cash Flow	149.80M	134.90M	82.20M	292.90M	133.20M	157.90M
Operating Cash Flow	255.40M	256.80M	201.60M	398.40M	233.80M	221.60M
Investing Cash Flow	-105.60M	-120.60M	-94.20M	-504.00M	-150.20M	-1.43B
Financing Cash Flow	-172.50M	-120.90M	-201.70M	166.40M	-114.60M	982.00M

Avient Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 31.93 is below the 20-day moving average (MA) of 32.15, below the 50-day MA of 34.51, and below the 200-day MA of 36.01, indicating a bearish trend. The MACD of -0.94 indicates Negative momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 51.45 is Neutral, 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
CBT	71 Outperform	$3.71B	9.10	29.03%	2.53%	-3.61%	-9.70%
AVNT	70 Neutral	$2.87B	24.28	5.09%	3.38%	3.28%	1.69%
HWKN	66 Neutral	$3.41B	39.83	18.69%	0.45%	9.51%	5.20%
FUL	64 Neutral	$3.20B	28.25	6.05%	1.57%	-1.30%	-36.69%
PRM	64 Neutral	$3.36B	53.95	7.06%	―	56.87%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OLN	53 Neutral	$2.68B	41.89	-0.69%	3.42%	1.49%	-105.20%