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Avient (AVNT)
NYSE:AVNT
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Avient
(NYSE:AVNT)
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Rating:70Neutral
Price Target:
$39.00
▲(19.63% 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 (AVNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.01B
Dividend Yield3.31%
Average Volume (3M)525.60K
Price to Earnings (P/E)25.4
Beta (1Y)1.30
Revenue Growth3.28%
EPS Growth1.69%
CountryUS
Employees9,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.80
Shares Outstanding91,540,565
10 Day Avg. Volume620,189
30 Day Avg. Volume525,599
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit4.26
Enterprise Value/Ebitda11.08
Forecast
1Y Price Target
$43.00Price Target Upside31.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Avient Business Overview & Revenue Model
Company DescriptionAvient 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 MoneyAvient 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 Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with notable achievements in organic growth, debt reduction, and innovation offset by challenges in consumer markets and raw material cost pressures. Strong demand in defense and health care provided a positive counterbalance to some regional and market-specific weaknesses.Q2-2025 Updates
Positive Updates
Second Quarter Organic Sales Growth
Reported a 0.6% organic sales growth in the second quarter despite an uncertain macro environment.
Adjusted EPS and EBITDA Margin Expansion
Adjusted EPS grew 5% to $0.80, slightly ahead of guidance, with adjusted EBITDA margins expanding by 30 basis points to 17.2%.
Strong Performance in Defense and Health Care
Defense and health care sectors showed strong demand, with health care growing double digits.
Debt Reduction Achievements
Paid down $50 million of debt during the quarter, with plans to reduce total debt by $100 million to $200 million by year-end.
Patent Filings and Innovation
Patent filings increased by 50% in 2024 versus 2023, with expectations to exceed year-over-year filings again in 2025.
Negative Updates
Weak Performance in Consumer Markets
Consumer markets showed weakness globally, particularly impacting the U.S. and Canada, with consumer sales down 8% in Q2.
Challenges in EMEA
EMEA sales were down slightly, with packaging sales not experiencing the typical second-quarter seasonal benefit.
Impact of Planned Maintenance
Planned maintenance in the Avient Protective Materials business led to a $3 million impact on SEM's EBITDA for the quarter.
Pressure from Raw Material Costs
Experiencing low to mid-single-digit price increases in pigments and flame retardants, with some materials seeing more than 3x price increases due to supply constraints.
Company Guidance
In the call, Avient Corporation provided guidance indicating a stable but cautious outlook for the rest of 2025. The company reported a 0.6% organic sales growth in Q2, with adjusted EPS increasing by 5% to $0.80, slightly beating the guidance of $0.79. Adjusted EBITDA margins expanded by 30 basis points to 17.2%, driven by a favorable mix and productivity initiatives. For the full year, adjusted EBITDA is projected to be between $545 million and $560 million, and adjusted EPS is expected to range from $2.77 to $2.87. Avient is focused on realizing $40 million in benefits for 2025 from sourcing, Lean Six Sigma initiatives, and discretionary spending control, with $17 million already achieved in the first half. The company is also on track to reduce debt by $100 million to $200 million by year-end, having already repaid $50 million in Q2. Despite an uncertain macro environment, Avient sees strong demand in defense and health care sectors, which offsets weaknesses in consumer markets.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.70
Positive
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.75
Positive
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.72
Positive
| 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
Negative
32.60
Price Trends
34.90
Negative
34.92
Negative
36.84
Negative
Market Momentum
-0.68
Positive
33.10
Neutral
7.48
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 32.6 is below the 20-day moving average (MA) of 35.55, below the 50-day MA of 34.90, and below the 200-day MA of 36.84, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 33.10 is Neutral, neither overbought nor oversold. The STOCH value of 7.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVNT.
Avient Risk Analysis
Avient disclosed 14 risk factors in its most recent earnings report. Avient reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avient Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.69B | 43.58 | 17.47% | 0.41% | 9.51% | 5.20% | |
71 Outperform | $4.11B | 10.10 | 27.58% | 2.28% | -3.61% | -9.70% | |
70 Neutral | $3.01B | 25.42 | 5.09% | 3.31% | 3.28% | 1.69% | |
63 Neutral | $3.15B | 50.56 | -0.51% | ― | 56.87% | ― | |
60 Neutral | $3.14B | 27.93 | 5.87% | 1.57% | -1.30% | -36.69% | |
54 Neutral | $2.75B | -197.85 | -0.73% | 3.34% | 1.49% | -105.20% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
AVNT
Avient
32.60
-15.69
-32.49%
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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.