Avient (AVNT) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: 2.93%
• Average Volume (3M): 671.10K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.35
• Revenue Growth: 3.28%
• EPS Growth: 1.69%
• Country: US
• Employees: 9,200
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Chemicals - Specialty
• EPS (TTM): 0.80
• Shares Outstanding: 91,540,565
• 10 Day Avg. Volume: 532,332
• 30 Day Avg. Volume: 671,104
• 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: 1.31
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 11.08
• 1Y Price Target: $41.00
• Price Target Upside: 12.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 70 Neutral
• Price Target: $39.00 ▲(6.91% Upside)

Avient's overall stock score reflects stable financial performance and positive corporate developments, such as the new credit facility. However, technical indicators suggest caution due to potential overbought conditions, and valuation metrics indicate the stock may be overvalued. The earnings call provided a balanced view with positive growth and debt reduction efforts, offset by challenges in consumer markets.

Positive Factors

Financial Flexibility

The new $500M revolving credit facility enhances Avient's financial flexibility, supporting operational and strategic initiatives, which strengthens its ability to adapt to market changes and invest in growth opportunities.

Innovation and Patent Growth

The significant increase in patent filings reflects Avient's commitment to innovation, which can lead to new product developments and competitive advantages in the specialty chemicals market.

Debt Reduction Efforts

Avient's proactive debt reduction strategy enhances its balance sheet strength, reducing financial risk and improving long-term financial health, allowing for more strategic investments.

Negative Factors

Weak Consumer Market Performance

Weakness in consumer markets, particularly in the U.S. and Canada, poses a challenge to Avient's revenue growth, potentially impacting profitability if the trend persists.

Raw Material Cost Pressures

Rising raw material costs can squeeze margins and affect Avient's cost structure, necessitating effective cost management strategies to maintain profitability.

Decline in EMEA Sales

A decline in EMEA sales indicates regional market challenges, which could impact Avient's global revenue diversification and necessitate strategic adjustments to regain growth.

Avient Business Overview & Revenue Model

Company Description

Avient Corporation (AVNT) is a global provider of advanced polymer materials, services, and sustainable solutions. The company operates primarily in two segments: Product Solutions and Color, Additives and Inks. Avient's core offerings include specialty engineered materials, color and additive systems, and custom polymer formulations, catering to a diverse range of industries including healthcare, consumer goods, transportation, and packaging. Avient is committed to sustainability, focusing on innovative solutions that enhance product performance while reducing environmental impact.

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: Neutral
• Last Price: 36.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 36.48 is below the 20-day moving average (MA) of 36.72, above the 50-day MA of 34.79, and below the 200-day MA of 38.08, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 46.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVNT.

Avient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUL	74 Outperform	$3.39B	34.12	5.62%	1.48%	-0.09%	-37.60%
HWKN	74 Outperform	$3.67B	43.23	18.69%	0.43%	9.51%	5.20%
CBT	71 Outperform	$4.31B	10.60	29.03%	2.22%	-3.61%	-9.70%
AVNT	70 Neutral	$3.47B	29.31	5.09%	2.93%	3.28%	1.69%
PRM	63 Neutral	$3.22B	51.84	7.06%	―	56.87%	―
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
OLN	55 Neutral	$2.87B	41.89	-0.69%	3.14%	1.49%	-105.20%

Avient Corporate Events

Avient Secures New $500M Revolving Credit Facility

On June 12, 2025, Avient Corporation entered into a new Revolving Credit Agreement with JPMorgan Chase Bank, replacing its previous credit agreement from 2019. This agreement introduces a senior secured revolving credit facility of up to $500 million, which can be increased by $250 million, and is intended for working capital, capital expenditures, and other corporate purposes. The facility allows for borrowings in U.S. Dollars and specified alternative currencies, with interest rates determined by Avient’s Consolidated Leverage Ratio. This financial move is expected to provide Avient with enhanced financial flexibility and support its operational and strategic initiatives.