Avient (AVNT) AI Stock Analysis

• Market Cap: $3.31B
• Dividend Yield: 3.48%
• Average Volume (3M): 763.93K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.28
• 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: 1,000,420
• 30 Day Avg. Volume: 763,929
• 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: 1.46
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 4.63
• Enterprise Value/Ebitda: 12.07
• 1Y Price Target: $39.80
• Price Target Upside: 8.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $38.00 ▲(3.97% 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

Strong free cash flow growth

An 86.8% jump in free cash flow and an operating cash flow to net income ratio of 2.26 show durable cash-generation improvement. That strengthens the company's ability to fund R&D, capex, dividends, and debt reduction, providing a multi-quarter buffer versus cyclical demand.

Productivity-driven margin expansion

Realized productivity of roughly $40M and a 60bp adjusted EBITDA lift indicate structural cost-program success. Sustainable productivity gains, if maintained, improve operating leverage and can partially offset volume declines, supporting margin durability over the medium term.

Improving leverage and debt reduction

A lower debt-to-equity ratio (~0.83) and active reductions ($100M YTD; $150M target) materially reduce financial risk. Sustained deleveraging lowers interest cost, increases balance-sheet flexibility for strategic investments, and strengthens resilience to industry cyclicality.

Negative Factors

Revenue contraction trend

A 26.7% drop in the revenue growth rate is a lasting concern: reduced top-line scale undermines pricing power and fixed-cost absorption. Persistently weak organic sales in key markets could limit investment capacity and make recovery dependent on end-market rebounds or new product wins.

Low profitability and margin pressure

ROE near 5% and a net margin of ~3.5%, alongside falling EBIT/EBITDA margins, signal constrained returns on capital. Structural margin pressure reduces reinvestment ability and shareholder return capacity; sustained productivity will be required to materially improve long-term profitability.

Exposure to weak end markets

Significant exposure to consumer and packaging—with consumer down high single digits and packaging weakness—plus energy and industrial softness, creates multi-market tailwinds. Prolonged weakness in these end markets can structurally depress volumes and inhibit sustained revenue recovery.

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 primarily through the sale of its specialized polymer products and services, which are categorized into several key segments: Color, Additives, and Engineered Materials. The company leverages its extensive expertise in materials science to develop tailored solutions that meet the unique needs of its clients, which helps to foster long-term partnerships. Additionally, Avient has made strategic acquisitions and collaborations that enhance its product offerings and market reach, contributing to consistent revenue growth. The company also focuses on sustainability initiatives, which are increasingly in demand, thus allowing it to tap into new markets and customer bases seeking eco-friendly solutions. Overall, the combination of a diverse product portfolio, strategic partnerships, and a focus on innovation are critical to Avient's revenue generation.

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	400.60M	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: Positive
• Last Price: 36.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNT, the sentiment is Positive. The current price of 36.55 is above the 20-day moving average (MA) of 35.32, above the 50-day MA of 32.42, and above the 200-day MA of 33.25, indicating a bullish trend. The MACD of 1.24 indicates Positive momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 41.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVNT.

Avient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBT	73 Outperform	$3.77B	12.00	21.98%	2.72%	-7.04%	-11.28%
PRM	64 Neutral	$3.87B	62.07	7.39%	―	19.12%	―
AVNT	63 Neutral	$3.31B	29.32	4.79%	3.48%	1.03%	-24.57%
FUL	63 Neutral	$3.26B	21.89	7.93%	1.54%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	61 Neutral	$2.72B	31.60	16.89%	0.50%	11.86%	1.99%
OLN	53 Neutral	$2.37B	-58.36	-2.18%	3.91%	4.68%	-62.80%